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Germany - Restaurant expansion in shopping centres: path to success or a wrong turn?

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People are eating away from home with increasing regularity. Many shopping centres are responding to this appetite for eating out with a larger restaurant offering, killing two birds with one stone. They are replacing unproductive retail space and positioning themselves as leisure destinations. Is this a promising strategy?

Germans are not exactly renowned in other countries for their culinary culture. A few figures demonstrate why. The average German consumes more than 45 kg of frozen food per year. Almost a tenth of this is attributable to frozen pizza. However, there is one particularly striking trend. While retail sales of frozen pizza have increased by “just” 13% over the last five years, eating-out sales for the same product have risen by more than 60%. However, it is not only pizzas that are being consumed away from home with greater regularity in Germany. Overall household expenditure on eating out has risen by more than a fifth over the last five years.

Source : Savills

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