Food & Beverage
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SOFIA FOOD & BEVERAGE REPORT Q1 2019 2 CONTENTS | Sofia | Sofia Q1 2019 I. FOOD & BEVERAGE CATEGORY IN SOFIA SHOPPING CENTRES 3 1. F&B Subcategory Characteristics 3 2. Typical F&B Subcategory Size 5 3. F&B Subcategories3 in Sofia Shopping Centres 5 3.1. Fast Food, Casual Dining and Bars & Clubs Subcategories’ Share 5 Food & Beverage Report | Colliers International | Colliers Report & Beverage Food 3.2. Mix of Local and International F&B Brands 7 3.3. Food Court distribution by food types 7 3.4. Restaurants distribution by cuisine types 7 3.5. Kiosks that are served by F&B Sector 8 II. F&B SURVEY RESULTS 9 III. FORECAST 9 3 This report covers the Food & Beverage (F&B) category in modern shopping centres in Sofia. It analyzes its share in the tenant mix and the key trends in its evolution presently and in the future. International | Colliers Report & Beverage Food Q1 2019 | Sofia I. FOOD & BEVERAGE CATEGORY IN SOFIA SHOPPING CENTRES F&B category1 takes about 6% or a decade ago to 10-15% in present 20,000 sqm of the total space of times and is forecasted to reach 20% of modern shopping centres in Sofia. the total space by 2025. In all modern shopping centres in Sofia it is 2 to 3 In other European cities, the amount of times below the European benchmark. shopping centre floorspace, dedicated to F&B, has grown gradually from 5% FIG. 1: F&B CATEGORY 16% AS A % OF TOTAL GLA 14% 12% European Average 10% 8% 6% 4% 2% 0% Park Mall of The Mall Serdika Bulgaria Paradise So a Mega Center So a Center Mall Center Ring Mall Mall 1. F&B SUBCATEGORY CHARACTERISTICS TABLE. 1 F&B Subcategory Typical Trading Periods Typical Purchase Typical Dwell Time Impulse Treats Anytime of the day One item Takeaway Coffee Shops Breakfast, afternoon break 1 coffee drink Takeaway or half an hour, on average Fast Food Lunch, dinner, snack times Meal deal including a drink 10 – 20 minutes Casual Dining Restaurants Lunch and dinner 2-course meal with or without alcohol 30 – 60 minutes Specialized Restaurants Lunch and dinner 2- or 3-course meal often with alcohol 60 – 120 minutes Bars & Clubs Evening Drink 60 – 90 minutes 3/Fine Dining Restaurants - this subcategory is not presented in shopping centres in Sofia. Source: Colliers International 4 FIG. 2: DISTRIBUTION OF F&B SUBCATEGORIES PER | Sofia | Sofia SHOPPING CENTRE Q1 2019 Park Center Mall of So a Impulse Treats 1% Impulse Treats 7% Coee Shops 22% Coee Shops 10% Fast Food 50% Fast Food 34% Casual Dining 19% Casual Dining 49% Bars & Clubs 10% Food & Beverage Report | Colliers International | Colliers Report & Beverage Food The Mall Serdika Center Impulse Treats 3% Impulse Treats 2% Coee Shops 15% Coee Shops 23% Fast Food 63% Fast Food 38% Casual Dining 19% Casual Dining 32% Bulgaria Mall Mega Mall Impulse Treats 5% Impulse Treats 16% Coee Shops 29% Fast Food 84% Fast Food 39% Casual Dining 20% Specialized Restaurants 8% Paradise Center So a Ring Mall Impulse Treats 2% Impulse Treats 3% Coee Shops 12% Coee Shops 15% Fast Food 19% Fast Food 25% Casual Dining 22% Casual Dining 34% Bars & Clubs 5% Specialized Restaurants 22% Specialized Restaurants 40% FIG. 3 FAST FOOD, 8000 100% CASUAL DINING 7000 90% European Average AND BARS & CLUBS 6000 80% 70% SUBCATEGORIES’ SHARE 5000 60% 4000 50% 3000 40% 2000 30% 1000 20% 0 0% Park Mall of The Mall Serdika Bulgaria Mega Paradise Soa Center Soa Center Mall Mall Center Ring Mall Fast Food, Casual Dining, Total Food & Beverage % of Total Food & Beverage Specialized Restaurants, Space Space Bars & Clubs Source: Colliers International 5 Food & Beverage Report | Colliers International | Colliers Report & Beverage Food Q1 2019 2. TYPICAL F&B SUBCATEGORY SIZE | Sofia TABLE. 2 Optimal Unit Size Optimal Unit Size F&B Subcategory sqm | Europe sqm | Sofia Impulse Treats 20 -30 6-20 Coffee Shops 148-250 20-200 Fast Food 200-400 20-200 Casual Dining Restaurants 300-600 150-1500 Specialized Restaurants 300-600 150-700 Bars & Clubs 350 100-400 Source: Colliers International 3. F&B SUBCATEGORIES3 IN SOFIA SHOPPING CENTRES F&B subcategories distribution is shopping centres in Sofia. On the divergent and shopping centre specific. contrary, Specialized Restaurants Nevertheless, in all cases the largest and Bars are presented in only 3 out share is taken by Fast Food. Colliers’ of 8 malls. Fig. 2 shows the F&B research in reveals that the latter subcategory distribution by shopping subcategory and Casual Dining are centre. adequately represented in all modern 3.1. FAST FOOD, CASUAL DINING AND BARS & CLUBS SUBCATEGORIES’ SHARE According to the International Council Only three of the shopping centres in of Shopping Centres (ICSC), about 80% Sofia are below these 80%, for the rest, of the F&B space in a shopping centre the percentage varies between 81% should be dedicated to Fast Food, Casual and 89%. Sofia Ring Mall, The Mall and Dining Restaurants and Bars & Clubs, Mall of Sofia are very close to the ICSC with the remaining 20% focused on benchmark distribution. (Fig. 3) Impulse Treats and Coffee Shops. 3/Fine Dining Restaurants - this subcategory is not presented in shopping centres in Sofia. 6 FIG. 4: IMPULSE TREATS 12% 10% 8% 6% | Sofia | Sofia 4% 2% Q1 2019 0% Park Mall of The Mall Serdika Bulgaria Mega Paradise So a Center So a Center Mall Mall Center Ring Mall Local International *Mega Mall deviation is due to the small base of F&B space Food & Beverage Report | Colliers International | Colliers Report & Beverage Food FIG. 5: COFFEE SHOPS 30% 25% 20% 15% 10% 5% 0% Park Mall of The Mall Serdika Bulgaria Paradise So a Center So a Center Mall Center Ring Mall Local International FIG. 6: FAST FOOD 50% 40% 30% 20% 10% 0% Park Mall of The Mall Serdika Bulgaria Mega Paradise So a Center So a Center Mall Mall Center Ring Mall Local International FIG. 7: FOOD COURT DISTRIBUTION BY FOOD Other National Cuisine 9% TYPES Bulgarian Cuisine 5% Pastry & Ice Cream Burgers & Sandwiches 8% 31% Asian 9% Healthy 14% Pizza, Pasta, Sea Food 24% Source: Colliers International 7 Food & Beverage Report | Colliers International | Colliers Report & Beverage Food Q1 2019 3.2. MIX OF LOCAL AND INTERNATIONAL F&B BRANDS | Sofia F&B category in shopping malls in Coffee Shops and Fast Food. Figures Sofia predominantly consists of local 4 – 6 present the proportion of local and brands. The highest concentration of international brands per subcategory international brands is registered for and shopping centre. 3.3. FOOD COURT DISTRIBUTION BY FOOD TYPES The typical meeting place in a shopping (22%). The growing awareness of centre is the Food Court. The most healthy nutrition determines the good common culinary offers of Food Courts positioning of this type of food in in Sofia are burgers & sandwiches comparison to others. (Fig. 7) (32%) and pizza, pasta and sea food 3.4. RESTAURANTS DISTRIBUTION BY CUISINE TYPES Restaurants are another typical meeting malls are Asian, Italian and International. place in a shopping centre. The most (Fig. 8) popular cuisine types in the surveyed 3.5. KIOSKS THAT ARE SERVED BY F&B SECTOR Kiosks are placed on almost every The current share of kiosks served by corner in a shopping centre with the aim the F&B sector in the shopping centres to foster impulse purchases. in Sofia is 18%. FIG. 8: RESTAURANTS DISTRIBUTION BY CUISINE TYPES Asian 27% Italian 42% International 31% Source: Colliers International 8 FIG. 9: DO YOU INTEND TO OPEN NEW PREMISES No IN 2019? 33% | Sofia | Sofia Q1 2019 Yes 67% Food & Beverage Report | Colliers International | Colliers Report & Beverage Food FIG. 10: WHERE DO YOU PLAN TO OPEN NEW High Street 50% PREMISES? Shopping Mall 56% Retail Park 25% O ce Building 38% Other 19% FIG. 11: IN WHICH CITIES? Soa 88% Varna 25% Burgas 19% Plovdiv 13% Russe 6% Haskovo 6% FIG. 12: WHAT IS YOUR 6-8% 17% OCCUPANCY COST RATIO? 8-10% 17% 10-12% 17% 12-15% 21% Above 15% 13% No answer 17% Source: Colliers International 9 II. F&B SURVEY RESULTS International | Colliers Report & Beverage Food Q1 2019 | Sofia In November 2018 Colliers International 21% of the participants in the survey conducted a survey among F&B reported occupancy costs in the range operators in Bulgaria. It revealed that of 12-15%. Defining a sustainable 67% of the participants have intentions occupancy costs ratio for the F&B to expand in 2019. High streets and sector in shopping centres is complex shopping centres are the most preferred as it depends on profit margins of the locations, but the vivid development of operator, country specific labor costs the office market motivates 38% of them and the dominance of the retail scheme to consider opening point of sales in itself. Occupancy costs ratio below 15% office buildings as an option. 88% stated typically may be used as a threshold for that they plan to open new locations in healthy relationship between costs and Sofia. benefits of a lease of a F&B operator. III. FORECAST • Shopping centres that successfully • There is room for improvement of innovate and create the right the F&B category in Bulgaria: concept and environment can » Plan, design and execute become social hubs. Enjoying food enlargement of the food court together has become a sustainable zones; part of the shopping centre » Add more international operators experience. to the tenant mix; » Food types represented on food • The right mix of F&B in shopping courts will grow in terms of centres is an effective tool to diversity of the offer; increase footfall, dwell time, » Specialized restaurants and customer spending and overall Bars & Clubs are currently sales growth.