Restaurant chains from Chili’s to The Cheesecake Factory are reviving malls

New research shows that restaurant chains and food concepts are helping malls regain their footing by getting consumers to visit places that were once hard to come by.

Yelp data shows restaurants have become a driving force in this ever-changing retail landscape, helping to surge footfall at malls above pre-pandemic levels.

Shoppers snack and then spend their money at a variety of establishments before and after dining out, creating a throwback effect in what is often referred to as a “struggling industry.”

The days of crowded malls are starting to return, but they look a little different than the ones we were used to in the 1990s and early 2000s.

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Drive past the Great Northern Mall in Ohio or take a step on foot and you’ll be greeted by one restaurant after another.

There are others on the way, including Texas Roadhouse in the near future.

“Five times the traffic,” said Tony Ke, owner of TJ Hibachi and Sushi.

Ke said that despite the ups and downs caused by the coronavirus pandemic and many people opting for online shopping over the years, the situation is finally changing.

He said business is booming, with traffic at the mall’s food courts five times higher than in past years.

“It’s really getting better and better,” Ke said.

And he is not alone.

Scripps News Cleveland followed up and spoke with Beverly Bolton, owner of Fortune’s Cookies.

The self-proclaimed community baker and Cleveland mom took a chance when she opened her first brick-and-mortar store in the Great Northern a year ago.

“It’s been an adventure, but better than I expected,” Bolton said.

The local cookie shop became so popular that she was invited to fill the nostalgic cookie void at the mall.

“Other shopping centers also contacted us. In fact, use the space where Mrs. Fields used to be,” Bolton said.

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Placer.AI reports that shopping centers—whether open-air concepts or traditional malls like the Great Northern—will be on the rise again in 2024.

The organization, which tracks retail traffic, says restaurants and food concepts in malls are the main reason. From 2019 to 2024 they grew by 7%.

Yelp recently released a report on the 25 largest mall brands, and 17 of the 25 largest mall brands are restaurant chains:

• Cheesecake Factory number 1
• BJ’s at 4 Restaurant and Brewery
• Starbucks at 6
• Olive Garden at 7
• Panera at 10
• Chile at 21

Nutrition concepts are also a driving force. This includes Filipino, vegan and, most notably, bubble tea, which has increased in price by 100% over the past five years, according to Yelp.

Michael Goldberg, a professor of design innovation at Case Western Reserve University’s Weatherhead School of Management, said the online generation plays a critical role in this process.
“Many Americans, especially younger Americans, are experience-focused, and there’s nothing better than sharing food with friends,” Goldberg said.

Young social media influencers eat food on camera, leave reviews and encourage people to dive in and try the food.

The TikTok generation has given once-struggling brands a powerful boost and revived them tenfold. Case in point: Chile’s Triple Dipper.

“The idea that Chili’s is back and driven by influencer videos on TikTok is pretty exciting and, you know, I mean there’s a nostalgia for the brands,” Goldberg said.

Localized community programs and holiday events, such as photos with Santa, are the backbone of shopping centers like Great Northern.

Lori Weidleman, who has been making pretzels at Auntie Anne’s since 1997, said change is constant.

However, she added that it has become clear that people are willing to pay for a quality product that takes them back to a special moment in their lives.

“Ohio is doing very well. We are strong and achieving our goals and objectives. And many generations are interested in this,” Weidleman said.

This story was originally published by Mike Holden on Scripps News Cleveland.