Unlocking Customer Value: Are you optimizing your food and beverage strategy?
At Coniq, we're constantly analyzing customer behaviour to help shopping destinations thrive. Our latest data reveals that these interactions hold significant power. The customers who do visit F&B establishments are incredibly valuable, showcasing higher engagement, more frequent visits, and ultimately, a more dynamic shopping experience.
The Power of the F&B Customer
Let's dive into the numbers:
- Transaction Superstars: Customers who visit F&B retailers complete an average of 167% more transactions than those who don't. The positive impact of F&B goes far beyond driving footfall—it directly fuels greater overall spend. While average F&B ticket values typically remain under £10, even as dwell time increases, the standout effect is seen in non-grocery retail purchases: these can double when a visit lasts over an hour, and rise fourfold when shoppers stay more than two hours. This clearly demonstrates how F&B not only anchors visits but also unlocks higher spending across every part of the destination.
- More Frequent Visitors: These customers are also returning more often, averaging 5 visits per year compared to just 2 visits for non-F&B visitors. This increased footfall is vital for sustained growth.
- Spaces for social interaction: F&B venues are being reimagined for "inclusivity and social experiences," with a shift towards "interactive spaces over traditional bars and restaurants." It explicitly states that F&B has become, in many cases, a destination itself, driving "much needed footfall, repeat visitation, and contributing to entire communities.
- Increasing Allocation of Space: The continued trend of developers and landlords allocating a larger percentage of Gross Leasable Area (GLA) to F&B (with some approaching 20% or even 30% in certain regions) signifies that they recognize F&B's power in drawing visitors and extending their stay. This strategic investment wouldn't happen if F&B weren't a significant draw on its own.
- Faster Return Cycle: The interval between visits for F&B customers is significantly shorter, 71.7 days compared to 85 days for non-F&B customers. This means they're returning to shopping 19% faster, indicating a strong pull back to the centre.
Elevating Every Visit
It's not just about who visits F&B, but how F&B impacts the quality of every visit:
- Higher Transaction Value Per Visit: Coniq data shows that the average transactions per visit for those including F&B are 40% higher (3.27 vs. 2.34 transactions per visit). This suggests F&B acts as an anchor, encouraging more overall spending during a single trip.
- Extended Stay Times: For visits that involve more than one transaction, those including F&B see customers spending significantly more time in the centre – an average of 106 minutes compared to 85.4 minutes for visits without F&B. More time spent means more opportunities for engagement across various retailers.
F&B as an Anchor and Future-Proofing Strategy
Looking at the bigger picture, the presence of F&B significantly influences the performance of entire shopping destinations:
- Dramatic Increase in Transactions: Shopping centers that include F&B sectors boast an astonishing 285% more transactions than those without. While we acknowledge that this insight doesn't account for the size of the shopping centers, the correlation is undeniable. F&B acts as a powerful draw, enhancing the overall appeal and activity of a destination.
- Substantial Sector Contribution: In 2024 alone, the Coniq platform recorded a substantial 186,848 transactions, highlighting its significant contribution to the overall retail ecosystem within shopping destinations.
The Coniq Takeaway
The ripple effect on customer behaviour and overall shopping center performance is undeniable. F&B serves as a critical component in attracting highly engaged customers, encouraging more frequent visits, increasing transaction volume, and extending dwell times. For shopping center operators, these insights underscore the strategic importance of investing in and optimizing their F&B offerings. By understanding the powerful influence of F&B on customer behaviour, destinations can create more compelling experiences that drive greater value and foster long-term loyalty.
What strategies are you currently employing to leverage your F&B offerings for enhanced customer engagement?
