Yahoo Finance 4 Ways Millennials Are Keeping Restaurant Real Estate Alive
Not long ago, many restaurant owners in the United States were fearful about their futures. During the pandemic, lots of them were struggling to stay in business.
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Now, not only is restaurant real estate alive, it’s doing very well. According to the Wall Street Journal, “Now, with Americans dining out more than ever, the restaurant business is emerging as the hottest corner of retail real estate.”
In fact, according to data from CoStar Group as reported by the WSJ, food services made up more than 19% of all retail leases last year. Further, that category rose to the highest proportion for any since the firm started tracking it in 2007.
Here’s a look at four ways millennials are helping to keep restaurant real estate alive.
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1. Eating Out More
Millennials have returned to restaurants after staying away during the pandemic. As reported by the WSJ, data from the U.S. Agriculture Department’s Economic Research Service showed the average household spent almost 53% of its food budget away from home last year. That’s a record-high proportion.
For millennials, they are not only eating out more alone, but also with friends and on dates.
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2. Making Different Lifestyle Choices
Speaking of dates, many millennials who are waiting to marry and have kids have been increasing their restaurant spending. Millennials, according to Fortune, “… have historically been less enthusiastic about marriage and childbearing than their parents, or have at least delayed the milestones while they prioritize their careers and their finances.”
Not only are single households less likely to grocery shop, they’re also more likely to eat at restaurants with higher prices.
3. Embracing the Foodie Culture
Have you seen food halls popping up around you? It’s a trend that’s been going pretty strong for the last few years. According to the WSJ, “Food halls, once a staple primarily of big cities, are rapidly multiplying in the suburbs as developers aim to capitalize on the rise of hybrid work and foodie culture.”
Millennials are embracing this trend and the foodie culture. They’re filling restaurants across the country looking for trendy places to enjoy food, the atmosphere and build social connections.
4. Using Technology
Many millennials are using restaurant technology to find deals and personalize their experiences. There are apps and online platforms that connect diners to their favorite spots.
However, the idea of personalization isn’t limited to digital options. For example, millennials have been visiting Chipotle to go down the line and personalize their meals.
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This article originally appeared on GOBankingRates.com: 4 Ways Millennials Are Keeping Restaurant Real Estate Alive
