Restaurants emerge as the new anchor for mall visits in 2024

The form and function of the traditional mall is expanding—from indoor commerce centers with rows of retailers to hybrid indoor-outdoor hubs that prioritize atmosphere as much as they do transactions. Malls are typically thought of as retail-first establishments, anchored around major retail stores like Macy's and JCPenney. Yelp data shows that, over the last five years, people are increasingly visiting malls for dining experiences, particularly at national casual dining and quick-service restaurants (QSRs), as 17 of the top 25 mall brands are in the food category. This shift is reshaping the way malls are perceived and utilized, with food and dining becoming the mall destination instead of the afterthought.

Despite a nationwide decline in mall searches, with a 13% decrease year over year and an 8% drop compared to 2019, interest in the Northeast for malls remains strong. In New York, searches are up 28% since 2019, possibly spurred by the American Dream mall (opened in 2019). Nonmetropolitan New Jersey ticked the highest percentage growth in searches for malls, growing 2,308% year over year. This regional growth contrasts with declines in the Midwest and the West, which fell 7% and 19% over the same time period.

Yelp data shows that the number of food and restaurant businesses in malls is growing, with locations increasing by 7% from 2019 to 2024. Bubble tea was the fastest-growing category, with a staggering 113% increase in number of stores from 2019 to 2024. Other dining favorites have also seen significant increases, including waffles (up 77%), vegan food (up 54%), and Filipino food (up 36%) during that same time period. Notably, traditional tea businesses have seen a significant contraction, down 49% from 2019, possibly indicating that many are shifting to trendier bubble tea options.

Experiences, technology, and value retailers are driving growth among non-food categories in malls. VR centers are the second-fastest growing category since 2019, up by 79%. Other notable growth categories include medical spas (up 50%) and mobile phones (up 40%). With high inflation over the last several years, thrift stores have increased 29% since 2019.

The central role of restaurant brands in malls

The most striking trend is the dominance of restaurants among the top mall brands. When evaluated by consumer interest, Yelp data shows that of the top 25 most popular mall brands, 17 are quick-service or casual dining restaurants.* This marks a significant shift in the primary reasons for mall visits, with dining experiences at national businesses taking center stage.

Known for its expansive menu and decadent cheesecakes, The Cheesecake Factory leads the list, as it finds viral success for its affordable and flavorful eats. Din Tai Fung, a newer, more premium Taiwanese restaurant that’s received praise for having the “world’s greatest dumplings,” landed as the first runner-up. The business has been a staple for food influencers and has interestingly relied on malls and shopping centers as growth engines. Finally, one of the world’s largest department stores Macy's holds the fort at #3.

The list of top mall brands highlights the centrality of food and dining to the mall experience. Other notable brands like BJ's Restaurant & Brewhouse, True Food Kitchen, Starbucks and CAVA (Yelp’s 2024 Fastest Growing Brand) offer a variety of dining experiences, from casual sit-down meals to quick-service options, catering to diverse consumer preferences. This shift is further evidenced by the inclusion of “eatertainment” venues like AMC, a popular movie theater chain with its own Dine-In Theatre brand, indicating that entertainment and dining are increasingly intertwined in the mall experience.

Other retailers such as Target and Nordstrom Rack remain popular, but their role as the primary draw for mall visits is not as pronounced. Beauty businesses Sephora and Ulta Beauty also serve as post-dining stops, particularly for Gen Z.

The rise of restaurants and dining experiences as the primary reason for mall visits represents a significant shift in consumer behavior. While traditional retail remains important, the focus has shifted towards food and entertainment, with restaurants playing a central role in attracting visitors. This trend is reshaping the mall landscape, with different culinary offerings and unique experiences becoming key drivers of mall traffic. As malls continue to evolve, the integration of dining and entertainment will likely play an increasingly important role in their success.

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