Restaurants in Retail Stores Lure Hungry Shoppers
News
Fine dining is making a comeback on the retail scene, bringing in new customers—and encouraging regulars to stay and shop a little longer.
By Anneliese Klainbaum
Creating a Memorable Experience
Many department stores abandoned restaurant concepts years ago, realizing they took up valuable space and didn’t generate as many dollars per square foot.
Today, some are returning to the idea that memorable food experiences can be part of a broader marketing strategy.
While it’s a delicate business to jump into, Goldberg says that the benefits—namely increased overall sales—can far outweigh the challenges. The sales per square foot at Tommy Bahama retail-restaurant locations generate twice that of their non-food retail shops.
Michael Kaufman, president of Fifth Dining, operates the new fine-dining restaurant, Sophie’s, at Saks Fifth Avenue in Chicago, a hidden escape from Magnificent Mile’s frenzied shopping scene. He agrees that more than just convenience is at stake, especially at a restaurant like Sophie’s, where every aspect is branded to complement its iconic retail partner.
“A restaurant within a store provides that next level of service to customers that retail is looking for, elevating the shopping experience,” he says.