As we navigate through the new year it is customary to look into my glass bowl, since it is essential to take a closer look at the future of the hospitality industry and how it might impact the leasing and development efforts. With global crises, rising inflation, and shifting political landscapes, it is evident that the industry will continue to evolve and adapt to meet the changing needs of consumers worldwide. In our view, it might be treacherous to keep doing what we always did and hoping for the same or better results.
Here a couple of the trends and directions we are seeing around the world:
• Competitive Socializing: The merging of great food and drinks with interactive activities is on the rise, leading to the popularity of concepts such as Lane7, swingers, escape rooms, flight club and many more. These venues provide a unique and engaging experience for customers looking to unwind and have fun.
• Rise of Foodhalls: Curated experiences championing local cuisine in a better atmosphere are redefining the traditional food court approach. Consumers are seeking out these innovative concepts that offer a variety of dining options in one convenient location.
• Quick Service Restaurants: In uncertain times, quick service restaurants are expected to thrive, with chicken concepts leading the way in transactions, turnover, and profitability. Concepts like Wingstop (in our overall TOP 10) and Popeye’s are setting new standards in the industry, surpassing traditional burger chains in performance.
• Plant-Based Food: Contrary to popular belief, the demand for plant-based food is on the rise, indicating a shift in consumer preferences towards healthier and more sustainable options. Businesses like Caspar Schmauser in Germany are successfully catering to this growing market. But be aware, guests don’t want to be lectured, they want to have great food and great experiences first.
• Utilization of Technology: The integration of technology in hospitality operations will continue to play a crucial role in enhancing customer experiences and driving business growth. The use of AI is not optional anymore, it has to be an integrated element. Together with my partner Michael Calic from weasweb.com, an IT and automation expert, we see a significant rise in the individual demand. Businesses that leverage technology effectively will be better positioned to meet the evolving needs of their customers.
• Experience-Driven Hospitality: Creating unique and immersive experiences for guests will be a key differentiator for businesses in the hospitality industry. Focusing on delivering exceptional experiences will help attract and retain customers in an increasingly competitive market. It will remain relevant to find solutions on and off-premises.
• Mixed-Use Developments: The development industry has recognized the importance of offering a diverse range of services and experiences within mixed-use developments. From day clinics to arcades to fine dining establishments, developers are prioritizing experiential offerings to enhance the overall appeal of their projects.
In conclusion, the hospitality industry is poised to play a crucial role in addressing the challenges of our time. Despite rising costs and shifting consumer behaviors, there is a continued demand for social spaces that allow people to connect and unwind. Retail developments and malls must adapt to these changing needs by integrating innovative concepts and experiences to remain relevant in an evolving marketplace. As we embark on a new year, it is essential for businesses in the hospitality industry to embrace change, innovate, and prioritize customer experiences to stay ahead of the curve.
With that said, we will remain by your side and keep you updated on how the hospitality trends are evolving.
