Locating and operating a restaurant in a bustling shopping mall comes with unique advantages and challenges. Malls provide access to steady foot traffic, convenience, and a diverse customer base, but they also impose restrictions and demands that impact operations.
Advantages
One significant benefit is the built-in foot traffic. Malls naturally draw shoppers, families, and tourists, creating a constant stream of potential customers. This reduces the need for intensive marketing efforts, as the mall’s environment already attracts people.
Another advantage is shared infrastructure. Restaurants in malls typically don’t need to provide certain facilities, such as restrooms, as these are included in the mall’s amenities. This not only saves money but also frees up manpower and valuable space for dining areas or kitchen operations.
Additionally, mall locations provide added convenience and security. Features like ample parking, managed cleaning services, and centralized maintenance allow restaurant operators to focus more on their core business—serving great food and delivering excellent service.
Disadvantages
Despite the benefits, operating in a mall comes with notable drawbacks. Rent is a major concern, as mall landlords often charge high base rates. Some landlords go a step further and also require a revenue-sharing arrangement, where restaurants must pay a percentage of their sales in addition to rent. This can be particularly burdensome for small or mid-sized businesses, especially during slower months.
Another disadvantage is the lack of flexibility. Malls typically enforce strict operating hours, which can limit the ability to open early for breakfast or close late for special events. This rigidity can make it challenging for restaurants to adapt to their target audience’s needs. They often also impose operating hours for their central air-conditioning systems, further curtailing or at least regulating opening hours.
Finally, the competitive nature of malls and restrictions on customization can make it difficult for restaurants to stand out. Limitations on exterior design and signage, combined with the fast-paced mall environment, can discourage a more relaxed or unique dining experience.
Our Own Experience
For Churrasco Phuket Steakhouse, its location inside the iconic Jungceylon Shopping Center in Patong Beach has been the perfect choice since January 2012. We are catering to over 100 nationalities visiting Phuket as tourists, and the mall location has served our steakhouse extremely well. In turn, due to our long and excellent history and consistently top reviews, we add significant traffic to the mall in turn. People seek us out in high numbers every day, which benefits the mall and other mall restaurants nearby.
In summary, while running a restaurant in a busy mall offers access to a ready-made customer base and many shared facilities, the high costs, operational constraints, and revenue-sharing models require very careful consideration and evaluation.
In other words, do your homework diligently.
Image Credit: https://churrascophuket.com/about/
_ _ _
© CHURRASCO PHUKET STEAKHOUSE / ALL RIGHTS RESERVED
>>> Reprinting, reposting & sharing allowed, in exchange for a backlink and credits <<<
Churrasco Phuket Steakhouse serves affordable Wagyu and Black Angus steaks and burgers. We are open daily from 12noon to 11pm at Jungceylon Shopping Center in Patong / Phuket.
We are family-friendly and offer free parking and Wi-Fi for guests. See our menus, reserve your table, find our location, and check all reviews here:
https://ChurrascoPhuket.com/
#Churrascophuket #jungceylon #phuketsteakhouse #affordablewagyu #wagyu