Evolution of the
leisure experience;
looking forward

Foreword.
We are all aware of the significant changes in customer behaviour in recent
years. Influenced by the growth of online retail and subdued discretionary
spending, this has had a profound impact on retail industry, the result of
which we can see in towns and cities across the UK. Consumers’ desire
for the ultimate ‘leisure experience’ joining shopping, eating out and
entertainment has driven strong growth in consumer leisure spending.
Our publication Evolution of the leisure experience; looking forward, seeks to
understand the changing face of leisure and retail property as we move to
more mixed use places throughout the country.
The overall picture of the sector is positive, with a strong year-on-year
consumer spending growth. The expansion of food and beverage (F&B),
cinema and health and fitness (H&F) operators has been unprecedented
over the last decade. Nonetheless, this report highlights the challenges the
industry is facing, with increasing costs and staff shortages being the most
prominent. Some F&B operators are also facing difficulties due to over-
expansion, and the declining quality of service and experience. However,
there is a general belief that these problems are not industry-wide.
Additionally, technological advancements have an increasingly crucial role in
the leisure environment, improving operational efficiency and the quality of
customer service. The introduction of food delivery services has turned out
to be a real disruptor for the restaurant sector.
Leisure too, has now become an inherent part of retail real estate; however,
successful integration of a shopping and leisure offer is not an easy task to
achieve. Landlords and asset management professionals need to have a
good understanding of demographic and behavioural profile of consumers
in the catchment area, in order to create the appropriate offer. Also, a
higher degree of creativity and flexibility is needed regarding leasing and
approaches to valuations.
Through market analysis and consultation with leisure and property experts,
this report is essential reading for anyone that seeks to understand the
evolving face of leisure and retail sector, and the speed with which these
changes are happening.
Mark Williams
President, Revo
Director, The Hark Group

Evolution of the leisure experience; looking forward
Researched and written by:
Tom Whittington, Savills
Richard Barron, Aspect Market Research
Savills
Belvedere
12 Booth Street
Manchester
M2 4AW
Aspect Market Research
54-56 Bridge Street
Manchester
M3 3BW
Sponsors:
Revo
Charter House
13-15 Carteret Street
Westminster
London, SW1H 9DJ
+44 (0)20 7222 1122
revocommunity.org
DAC Beachcroft
100 Fetter Lane
London
EC4A 1BN
+44 (0) 20 7242 1011
dacbeachcroft.com
Design by Sian Mullarkey, Revo.
Revo wishes to thank members of the steering group for their support throughout this
research: Sarah Fox, Hammerson / Marc Ward, Azzurri Group / Kannika Mall, M&G / Adam
Blaker, Leon Restaurants / Davinder Jhamat, Revo / Zuzanna Baranowska, Revo.
Disclaimer
The views expressed in this publication are not necessarily the views of DAC Beachcroft.
No liability is accepted to users or third parties for the use of the contents or any errors
or inaccuracies therein. Professional advice should always be obtained before applying
the information to particular circumstances. For further details, please go to www.
dacbeachcroft.com/eng/gb/about/privacy-policy. By reading this publication you accept that
you had read, understood and agree to the terms of this disclaimer.
No part of this publication may be reproduced, stored in a retrieval system or transmitted
in any form by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior permission of the publishers, Revo and DAC Beachcroft. The facts of this
report are believed to be correct at the time of publication but cannot be guaranteed.

2
List of contents.
03 Executive summary
05 Introduction
07 Market dynamics and change
Market size and current floorspace usage
Market saturation concerns
Future growth prospects
21 The consumer context
Importance of different leisure journeys
Visitation and spend
Brand loyalty
29 The role of technology
Technology for consumer experience
Technology for operational benefits
F&B and delivery
36 Looking forward: considerations and responses
Space and location
Lease structures and rental levels
Flexibility of approach
43 Appendix
Methodology
Definitions/Glossary

3 4
Amid changing customer behaviour, the role of leisure and in particular food and beverage (F&B) in the retail
environment has evolved significantly in recent years. The inflow of contradictory news on the performance
and the possible future of the sector has created a rather confusing picture.
This research explores the broad spectrum of issues concerning the leisure market, from the change in
consumers’ behaviour, impact of technology to the implications for the property industry. The report
provides an insight into the current state of the market and future developments.
Expansion of leisure
Spending levels across retail, F&B and non-food leisure continue to grow year-on-year, and are forecast to
grow across all sectors by around 4% annually for the next 10 years (with a slower growth in 2018-2019).
The expansion of cinema, health & fitness (H&F) and F&B operators has been unprecedented over the last
decade.
Restaurants, cafés & takeaways have seen the sharpest increase in the number of units of all leisure
sectors. The number of restaurant units in occupation has increased by over 70% since 2010, while cafés
& takeaways have seen growth of over 50%. Spending in restaurants was £80.4 billion in 2017, forecast to
increase to £93.6 billion by 2030.
The H&F market is also expected to continue its rapid growth. The number of facilities grew by 5% year on
year between 2016 and 2017, with the total market value experiencing over 6% growth during this period,
reaching £4.7 billion. Operators are still expanding aggressively and the boutique market is likely to see
serious expansion into the regional cities in the coming years.
The competitive socialising sector is on the rise, with a large number of independents operators. However,
the sector remains fragmented and focused on regional cities and London.
Both the existing leisure supply and growth are significantly weighted to high street locations, accounting
for 80% of all leisure floorspace. Much of this growth has been made possible through change of use of units
rather than new development.
London dominates in terms of a higher proportion of space devoted to leisure, frequency of visits and higher
spending, compared with the rest of the country.
Challenges ahead
Despite this strong growth, leisure operators are facing certain challenges, in particular some sectors within
F&B. Increasing sourcing, operating and property costs, staff shortages and economic uncertainty are
expected to constrict growth. With the leisure sector being heavily reliant on an EU workforce, Brexit is a
major challenge for leisure industry.
Despite several high-profile F&B Company Voluntary Arrangements (CVAs) in 2018, operators’ view is
that this is a consolidation and correction of the market. While the market does have issues with micro-
saturation in the casual dining sector, operators do not believe that saturation is industry-wide.
Many casual dining operators missed a chance to reinvigorate their offer. Rather than investing in the
experience, they cut costs leading to declining quality of experience. This, combined with the increase in
prices in 2017 led to a significant drop in the perceived value of some casual dining offers. The quality of
experience and excellent customer service remain the key to success.
Keeping up with the consumer
The link between retail and leisure time is stronger than ever with consumers constantly switching between
the need for convenience or pleasure. The convenience, experience and service are three most important
factors in consumer engagement with leisure.
Executive Summary.
Brand loyalty is becoming polarised within different leisure sectors. For the F&B sector it is a challenge. The
more mature and varied the offer becomes, the more consumers expect in return. The pressure to pull in
returning customers is forcing the industry to become more efficient and of higher quality, which is good for
the customer experience. However, as consumers are eager to try out new brands and formats, operators
cannot rely just on loyalty.
For the F&B operators, it is important to note that 20% of consumers make up half of eating occasions and
this is often led by the Millennial group. While Millennials might lead the way with some brands, having family
appeal is a key target for the sector.
Technology a key in improving operational efficiency
Technology is increasingly important throughout retail and especially in leisure. It is being used to increase
convenience, enrich the experience and deliver improved customer service. The most significant enabler of
tech is undoubtedly the smartphone. Without the advancement of this technology online bookings, social
media engagement, mobile payments and delivery services would never have been able to play as significant
a role.
Technological developments provide the operators the means for improving operational efficiency, which
in the casual dining sector in particular might prove essential for businesses that have over-stretched
their operations or gone into competitive locations. Improved operational efficiency is also of relevance to
landlords who want to ensure their occupiers have sustainable, viable spaces.
A real game changer: food delivery
The introduction of food delivery services such as Deliveroo and Uber Eats is one of the most impactful
developments for the restaurant sector in recent years, affecting operators and consumers. Operators
recognise that there are challenges that require them to change their business models and operations or
be left behind. The UK delivery market was worth a total of £6.7 billion in 2017 and is forecast to grow even
further, with predicted revenues of £7.5 billion for 2018.
For landlords the growth in this sector is likely to result in new occupants rethinking their space and
configuration requirements, and appropriate access for drivers.
Property perspective
Leisure is an enabler for retail, increasing the duration of retail trips as well as opening different parts of
the trading day. Greater synergy between leisure and retail has the potential to create more engaging and
memorable consumer experiences effectively driving footfall, repeat visitation and spending.
The evolving place of leisure in consumers’ lives will affect landlords in different ways. The key to the future
considerations is the flexibility of approach. That is the right operator, right location, right adjacencies and
right lease structure.
Flexibility on rents, space, location and offer is not always easy to implement. It requires close asset
management, creativity and often a step away from traditional occupier portfolios, leases, approach to
valuation and rents.
The rise from the independent sector is the positive story of leisure that we expect to see make its mark
over the next few years and with it is the opportunity to revitalise schemes, and provide a point of difference.

5 6
The purpose of this project is to inform the industry of the
issues surrounding the increased presence of leisure within
retail real estate, and how this should be best managed going
forwards to maximise the opportunities it presents.
The societal changes in behaviour and the impact of new
technology are the key drivers of the profound change in
retail and leisure industries. Operators are trying to keep
up with the fast changing consumer behaviour, in particular
the dissonance between convenience and pleasure; tackle
rising costs and grasp new tech developments in order to
increase operational efficiency and deliver good customer
experience. These are also major challenges for landlords
trying to deliver the best possible occupier mix and develop
strategy for their portfolios.
To address these issues, the report has been divided into
four key considerations:
• the current market and its dynamics
• the consumer context
• the role of technology
• key implications for landlords
Above all, the report assesses the importance of emerging
trends in the coming years, which have implications on F&B
operators, landlords and consumer expectations of a leisure
offering.
Throughout this paper, the term leisure includes the full
range of non-retail property. This includes non-F&B related
property usage. However, in reality the majority of the
leisure sector is dominated by F&B. There is also a significant
proportion of activity in leisure that is not related to F&B
although this is primarily cinemas and H&F along with other
non-F&B related activities.
The report provides an in-depth analysis of the market
and consultations with industry stakeholders. The detailed
methodology and glossary are outlined in the appendix.
The current market
and its dynamics.
The consumer
context.
The role of
technology.
Key implications
for landlords.
Introduction.

0.0%
2.0%
4.0%
6.0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Retail goods Leisure services Restaurant
£2,400
£2,600
£2,800
£3,000
£3,200
£0
£50bn
£100bn
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Restaurant spend (£bn) Restaurant spend (£) per household
7 8
In 2018, weekly commentary never passes without
some mention of Brexit, market saturation, or consumer
confidence and the negative impact these issues are
expected to have in consumer markets. Yet leisure
has enjoyed significant growth across all sectors while
the fortunes of retail has been much more varied.
The report starts with an overview of the leisure market
with an examination of the market size and usage, where
the recent growth has been and what locations are most
significant in providing the leisure experience. Given
the current rhetoric around CVAs and saturation in the
F&B market, some context has been provided on how
significant a problem this is, before speculating on where
the growth is likely to come from in the next few years.
Marketdynamics.
Spending levels across retail, F&B and leisure continue to grow year-on-year.
Average spending is forecast to grow across all sectors by around 4% annually
for the next 10 years, with an expected slowdown in 2018 and 2019, largely due
to consumer uncertainties over Brexit. However, by 2020 spending growth is
expected to recover and stabilise.
Spending in restaurants1
was £80.4 billion in 2017 with an average spend per
household of £2,916. This is forecast to increase to a total market spend
of £93.6 billion by 2030 when average household spend will reach £3,062.
Restaurant spend has proven to be resistant to economic downturns
compared with other consumer markets, especially retail.
Market size and usage.
Source: Oxford Economics
Source: Oxford Economics/Pitney Bowes
Spend y-o-y growth
Restaurant spend
1
All F&B

800
900
1,000
1,100
1,200
1,300
1,400
1,500
155
157
159
161
163
165
167
169
171
173
175
2009 2011 2013 2015 2017 2019 2021
GBO(£m)
Admissions(millions)
Admissions (m) Gross box office (£m)
109
Cinemas remain the most important non-F&B leisure offer
and continue to show growth despite the rise of alternative
content providers such as online streaming services. Gross
box office (GBO) value was £1.29 billion in 2017, an increase
of £347 million from 2009.
You’ve almost got a cinema
operator for every type of scheme.
Historically you had multiplex
operators and arthouse operators
with nothing in between. Now
there’s something for everyone.
That’s the same in terms of ticket
price for the customer and size of
site for the developer… There is a
wide range.
Leisure operator
Cinema admissions tend to fluctuate
according to which films are released and
especially the number of blockbuster
films in a particular year. Blockbusters are
particularly important for the larger multiplex
operators which rely on larger volumes of
admissions than the boutique operators
and will fill as many screens as possible with
these titles when released. There were
170 million admissions in 2017 which is 4
million fewer than in 2009. Admissions per
person fell from 2.71 visits per annum to 2.57
between 2011 and 2016. However, despite
the declining trend, revenues have held up
well – increased ticket prices and concession
spend have compensated for the drop in
admission numbers.
Source: Dodona
Gross box office vs Admissions
Other areas of leisure have seen significant expansion.
H&F is showing strong growth, especially in the regions.
There were 6,728 fitness facilities in the UK in 2017; 5% up
compared to 2016. The total market value is estimated at
£4.7 billion, a rise of 6.3% year-on-year. Much of the growth
has been from the budget operators, however boutique
outfits with a premium niche offer often from strong footfall
or worker locations are also seeing substantial growth.
In London and some other major cities, concepts combining
eating/drinking and ‘play’ are emerging. These feature some
form of group challenge and have been termed ‘competitive
socialising’. Concepts include formats such as breakout,
darts, table tennis and axe throwing. While there are a large
number of independent operators in this space, no single
brand or format has been identified as able to disrupt the
market and see substantial growth outside of the major
cities.
One sub-sector that has a potential to become a disruptor
is trampoline concepts. This sector has tended to be
focused on industrial units. However, there is now a move
to locate these in more prime space and shopping centres.
Operationally this remains highly fragmented as there are 72
different brands in 156 locations nationally.
In terms of leisure floorspace, there has
been steady increase over the past five
years. What is quite striking is the amount of
leisure that is on the high street rather than
in formal schemes or shopping centres. In
2018, there was a total of 120,833 leisure
units in occupation. Of these, 65% are on
the high street. The next highest location
type is town centre shopping centres (20%),
followed by retail and shopping parks (11%).
The overwhelming majority of leisure
units are therefore based in town centres.
However, the high street element is
fragmented. With as many as 4,761 high
streets, there are an average of 16 leisure
units per each high street, compared to 24
leisure units in each town centre shopping
centre.
Looking at the cinema market
there’s probably only been one
or two multiplexes that have
closed in the last 30 years.
They don’t like to give up.
Ashley Blake, CEO, Otium Real Estate Ltd.

No. of
schemes
No. of
leisure units
High street 4,761 78,193
In town leisure 36 347
Town centre shopping centre 990 23,773
Other shopping centres 122 1,230
Regional mall 14 2,744
Out of town leisure schemes 125 1,426
Retail and shopping parks 1,069 13,120
High street
116,028,100
In town leisure
1,910,600
Town centre
shopping centres
9,785,800
Other shopping centres
438,000
Regional malls
1,767,900
Out of town leisure
8,726,200
Retail and shopping parks
7,770,100
14%
83%
8%
14% 12%
64%
12%
25%
92%
14%
26%
19%
67%
15%
0%
20%
40%
60%
80%
100%
High street In town leisure Town centre
shopping
centres
Other shopping
centres
Regional mall Out of town
leisure
schemes
Retail &
shopping parks
2010 2018
26%
82%
14%
31%
6%
78%
15%
36%
92%
20%
43%
19%
82%
14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2018
High street In town
leisure
Town centre
shopping
centres
Other
shopping
centres
Regional
malls
Out of town
leisure
schemes
Retail &
shopping
parks
12%
83%
7%
12% 13%
63%
12%
22%
92%
14%
25%
19%
65%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2018
High street In town
leisure
Town centre
shopping
centres
Other
shopping
centres
Regional
malls
Out of town
leisure
schemes
Retail &
shopping
parks
1211
In terms of volume of space, the high street dwarfs the other
location types in terms of leisure use; 116 million sq ft is
occupied by leisure, representing a 17% increase of leisure
floorspace on the high street in the past five years. Town
centre shopping centres have 9.8 million sq ft occupied by
leisure. These two location types alone account for 86% of
leisure floorspace in the UK. In contrast, regional malls which
have a higher concentration but from only 14 locations,
account for 1.7 million sq ft of leisure floorspace; 1% of the
UK total.
In terms of leisure units as a proportion of total retail
and leisure space, in town leisure sees the highest share
with 92% of units being leisure, followed by out of town
leisure schemes (67%). The share of leisure in tenant mix
has increased in recent years across all type of locations.
However, the growth has been most significant on high
streets (from 14% to 25%) and shopping centres (from 14%
to 26%).
Leisure floorspace
by location type
Source: Savills/Geolytix
Number of leisure units
Source: Savills/GOAD
There is a higher proportion of space dedicated to leisure in London compared with the rest
of the country. This is unsurprising given the social culture in the capital, with the majority
of new brands tending to launch in London before rolling out to the regions. 36% of high
street units in London are occupied by leisure, compared with 22% in the rest of the UK.
Significantly, a higher proportion of leisure units in London has also been recorded in out-
of-town leisure schemes - 82% compared with 65% for the rest of the UK, as well as in other
shopping centres - 43% versus 25%.
Source: Savills/Geolytix
Leisure as proportion of retail and leisure units
London
Not London
Source: Savills/Geolytix
Source: Savills/Geolytix

-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Restaurants Cafés
& takeaways
Pubs, bars
& clubs
Fitness Cinemas Traditional D2 New D2* Other leisure
2010 2012 2014 2016 2018
*Unofficial planning category covering emerging leisure formats including those designed for competitive socialising.
0%
2%
4%
6%
8%
10%
12%
14%
16%
High street In town
leisure
Town
centre
shopping
centres
Other
shopping
centres
Regional
mall
Out of
town
leisure
schemes
Retail &
shopping
parks
2013 to 2014 2014 to 2015 2015 to 2016 2016 to 2017 2017 to 2018
13 14
Restaurants, cafés & takeaways have seen the sharpest
increases in the number of units of all leisure sectors. There
are 4,325 restaurant units in occupation in 2018 compared
with just 2,527 in 2010. Cafés & takeaways occupy 9,161
units in 2018 compared with 5,877 in 2010. The number
of restaurants, cafés & takeaways openings may well be
understated – market data tends not to capture small niche
operators, of which there are many – especially in London.
The H&F sector shows a long-term growth trend too. There
has been some fluctuation in number of units for this sector.
A dip in 2016 may reflect changes in operators’ business
models and a polarisation between budget and premium
offers. The number of cinema units has almost doubled since
2010 – growth has been driven, in part, by an increasing
Source: Savills/GOAD
Growth in leisure units by sector
number of smaller auditoriums and a move
towards more indulgent, premium offers.
Change of use to leisure provision has
steadied from its peak level in 2013/14, often
from an A1 or A3 conversion1
. This period
showed average change of use to leisure of
9% during a period of significant expansion in
the sector. Change of use has run at around
2-3% year-on-year since. While in the peak
period of 2013/2014, the in-town leisure
saw the highest rate of conversions (15%);
the largest amount of change of use units in
2018 was in town centre shopping centres.
1
For explanation on use classes, please check the appendix.
Change of use from non-leisure to leisure (% total leisure provision)
Source: Savills/GOAD

15 16
Market saturation concerns
in the F&B sector.
Even if you are the best operator
in a scheme there comes a point
where you still lose business.
There’s a balancing act where, if
there’s too much it’s not good for
anyone, but there can be just the
right amount for everyone.
Restaurant operator
The early part of 2018 saw a number of restaurant operators
falling into economic difficulties and it is therefore important
to consider the significance of the issue. Famous brands
such as Jamie’s Italian, Carluccio’s, Prezzo, Strada and Byron
have all announced closures and restructuring. Some have
entered voluntary agreements with their creditors in order to
keep trading and there are whispers of more on the horizon.
This has led some to question whether there is simply
too much supply in the market and that we have reached
the point of saturation within the industry with too many
restaurants chasing too few consumers.
One regional
shopping centre
had 10 restaurants
next to their cinema
complex – a good
tenant mix and all
trading well. Then
they added another
ten restaurants, five
burger restaurants
and five Italians and it
was too much.
Marc Ward, Group Head of
Acquisitions, Azzurri Group
According to operators, the market is not fatally wounded.
They see the difficulties being experienced by some as a
consolidation and correction of the market; there are issues
with micro-saturation (saturation in specific locations).
However, operators do not believe that saturation is
industry-wide. Some locations, such as smaller towns where
dining out is restricted mainly to weekends, cannot support
the number of operators. Most of metropolitan and city
locations are generally holding up well, however even these
may suffer local saturation issues. There is also over-supply
of certain types of restaurant offer.
Some of the problems have been caused by
the way some brands have managed their
expansion. Private equity backed groups
have often adopted a strategy of rapid
growth, as incremental gains of adding
extra sites was seen as the best way to offer
shareholders return on investment. However,
in seeking to grow as fast as possible, many
companies were loaded with debt funding
thereby increasing the exposure of the
businesses to any economic shocks. The
’race for space’ that ensued meant that
bidding wars have taken place for some
locations, resulting in some operators taking
on sites that are less profitable than their
original core estate.
The sector is changing very
quickly and significant operators are
struggling. It will be interesting to
see who will come out of the ashes.
We have reached a bit of a tipping
point where businesses are slowing or
stopping their roll out. It might mean
more independent operators have more
of a chance. There’s a lot of property on
the market at the moment from major
operators because some have over
extended themselves.
Restaurant operator
Casual dining is said to be at the core of the
problem. Yet, fewer than 10% of 56,000
restaurants in the UK are branded casual
dining. Additionally, there are 100,000 pubs,
takeaways and cafés, all vying for a share
of the consumer pound. Consumers have
proven increasingly willing to spend on
eating out at the same time as they have
limited spending on grocery and comparison
goods shopping, but sometimes supply has
outstripped the ever-increasing demand for
a good restaurant offer from consumers.
Despite mixed fortunes in retail since the
downturn, the restaurant market and in
particular the ‘casual dining’ market has
seen considerable growth over the last half
decade; 1,500 restaurants opened in the UK
during the 12 months to October 2017 (a 4%
increase y-o-y), with branded restaurants
increasing 55% in the past decade.
Restaurant spend has increased, with spend
on dining out estimated to be £580 more
per household than five years ago in the
strongest regions.
The next five years, however, are expected
to see household spend growth slow and
the longer trend shows that consumers are
still spending less on eating out than back
in 2008. It will be another decade before
household restaurant spend is at pre-
recession levels. Nevertheless, the total pool
of available consumer restaurant spending
surpassed pre-recession levels in 2015 to
over £81 billion and will exceed £85 billion
by 2020 and £91 billion by 2026. Therefore,
while household restaurant spend levels
growth is slowing, overall market capacity
continues to grow rapidly.

79%
19%
78%
14%
73%
17%
72%
15%
70%
23%
62%
27%
50%
9%
37%
19%
An increase in the
cost of raw
materials
Business rates Increased staff
costs
Fall of pound Increased costs of
imported goods
Decreased staff
availability
The impact of
terrorism
Rising rental
values
Already had an effect on business Anticipate having an effect in the next six months
1817
Consumers are taking an increasingly flexible approach to
how they structure their lives, blurring boundaries between
day parts and combining activities that were previously
separated. This flexibility is reflected in a desire for
convenience – restaurants’ offer should match consumers’
expectations. Increasingly, diners want more personalisation
and unique experiences, which opens the door to smaller
independent operators who are more able to tailor the offer;
the quality of customer service being the number one factor
behind repeat visits.
With hindsight, many casual dining operators missed a
chance to reinvigorate their offer. Rapid expansion led to
standardisation of the offer as a means to facilitate growth.
Rather than investing in the experience, many casual
dining operators cut costs leading to declining quality of
experience. At the same time, prices started to creep up
– 69% of restaurant businesses increased their prices in
2017. Once customers started to feel that they were paying
premium rates for an `average’ experience, the perceived
value of some casual dining offers dropped significantly.
Some brands haven’t done the
basics – you have to refurbish,
change the menu to keep it fresh
and up to date, you have to have a
situation where people think they
are getting value for money in
terms of food quality and service
quality.
Marc Ward, Group Head of Acquisitions, Azzurri Group
Taking the example of Jamie’s Italian, it believes that
its fundamental business model is sound. Once it has
restructured its estate, it will focus on improving the overall
experience for customers, making sure that it lives by the
values that their original business succeeded with. There are
casual dining brands that have continued to thrive. Nando’s
is one example of a business that continues to meet a need
within the market. Pizza Express is celebrating over 50 years
in business and is in a healthy state. Turtle Bay have had a
measured approach to expansion with 20 new locations in
three years, avoiding brutally expensive leases and they are
performing well. These brands attribute their success to
remaining close to the customer - continually listening to
them and making small changes that ensure the experiences
remain relevant and valued. Ultimately, if casual dining brands
can return to the core values and practices that made them a
success, while learning the lessons of over-expansion, there
seems little to prevent them prospering once again.
We should remember too that CVAs are not a new
phenomenon in the restaurant sector and have previously
been used by CDC and Ed’s Easy Diner. These operators are
still operating successful businesses following consolidation.
With consumers
often switching
between seeking value
and indulgence, the
biggest challenges
often sit within the
squeezed middle tier,
where the market is
highly competitive and
some brands lack clear
distinction. Marry this
with food and wage
inflation, and retention
of staff, it isn’t difficult
to see that there are
challenges ahead for
some operators.
David Bell, Head of UK Leisure, Savills
Future growth prospects.
There’s a lot of property on the market at the moment
from major operators because some have over extended
themselves. Costs are going up – rates, rent, the minimum
wage – have all hit everyone at the same time so a lot are
going to go out of business amidst a lot of competition.
Restaurant operator
Headwinds anticipated by operators in the F&B sector
Source: CGA Business Confidence Survey, Q4 17
The growth, which will continue, will be subdued by certain
issues and challenges, such as rising costs.
Some sectors, especially restaurants, will be operating in
a difficult environment in the short term, with rising costs
being the main challenge. Property costs, both initial fit-out
and ongoing rents, have been rising. Fit-out costs have been
increasing as restaurants tried to deliver differentiation in
venue experiences. F&B operators have sought out prime
locations with relatively higher rents. Food costs have also
been rising partly due to price increases from suppliers but
also due to rising transportation costs. Rate revaluations
have started to bite, with many operators experiencing
significant increases in the level of rates they pay.
One or two of our sites’ rates have
quadrupled – that kind of increase
is hard to stomach in any business.
Anyone not doing 5% like-for-like is
going backwards because of the cost
increase.
Restaurant operator
Rising labour costs is another factor that is
having a negative effect. There is a shortage
of skilled labour, especially chefs, which is
increasing demand for staff as vacancies
become harder to fill. This in turn is pushing
up wages as potential staff have a greater
choice.
The decision to leave the EU in 2019
has created some specific issues for the
industry. The fall in the value of Sterling has
had an impact on food prices as well as the
availability of labour. UK is now less attractive
financially for EU workers. Some may also
feel less welcome in the UK or do not want
the uncertainty of status that has arisen as a
consequence of the referendum.

19 20
In short, the challenges outlined above make the sector
landscape difficult, although once they have been
surmounted the outlook is much more optimistic.
Nevertheless, some operators will need to show good year-
on-year growth, possibly ahead of the market, to maintain
their profitability at current levels.
I think we are only seeing the tip of the iceberg.
Food costs are going through the roof, Brexit is a
disaster, cost inflation and recruitment is getting
harder and sales are down.
Morgan Davies, CEO, Barburrito
There has to be a stabilisation of the
relationship. There has to be a clear
out of restaurants. The strong will
survive and the ones that survive will
do very well. Those that went on the
expansion plan, saying they will open
20 restaurants but opened 23 took
their eyes off it.
Leisure operator
While there are undoubtedly headwinds in the F&B industry,
it is not all bad news. The frequency of eating out is at a four-
year high. Across all age ranges, people are expecting their
food and drink spend to rise, with 31% of 18 to 34-year-olds
expect to spend more.
In terms of economic uncertainty, consumers become more
value conscious. That is not to say that they are only price
driven; however, they are more discerning about the overall
experience they receive. Those operators that are seen to
offer value in its broadest sense should prosper. The ‘grab
and go’ market looks set to expand further as it offers a good
blend of value and convenience.
While 2017 and the early part of 2018 have seen a lot of site
closures, it was also a period when a lot of investment was
made by brands. Burger King is expecting to open 14 new
sites a year – a demonstration of confidence by its private
equity backers. Azzurri has continued to trade well and is
continuing to expand the Zizzi and ASK brands. This can
be taken as evidence that, despite over-expansion in some
areas, the underlying business fundamentals are good.
Nando’s is progressing well with its fit-out
program. Its investment in sites combined
with highly effective social media marketing
is leading to increased sales, especially in the
regions. Wet led brands like Living Ventures,
New World Trading Co. and Revolución de
Cuba are all planning expansion.
For landlords, there is still demand for
prime locations. In other locations, rises in
rents are likely to be more challenging. This
presents opportunities for brands like Turtle
Bay and Franco Manca that prioritise opening
in this type of location. Menu changes take
account of increasingly health conscious
eating looks set to become more popular
– especially vegan and vegetarian options.
Fundamentally, many branded concepts are
sound and will be able to attract customers
on their menu and pricing.
There is also still activity from smaller
restaurant operators looking to expand and
making the transition from independents
to small brands (e.g. Rudy’s Pizza, Mowgli
and Bundabust), or from street food
stalls to restaurant locations (Panchos
Burrito and North Soul). There are many
foodie entrepreneurs across the country
creating new concepts that rock the boat
for traditional casual dining, following new
trends and offering value and great service
to customers. While several finance-backed
restaurant groups are currently reaching
its brand’s own critical mass, the next
line of small operators is in waiting and
we anticipate that in five years’ time the
challenges of 2018 will appear to be a blip in
an otherwise positive story.
In other leisure sectors growth will vary
according to the different sub-market.
Cinema operators remain open to
opportunities. However, in reality these
are relatively rare and are on schemes that
require restaurant provision to make the
schemes viable to develop and therefore
closely tied to the fortunes in that market.
The boutique cinema operators are active
and benefit from needing smaller footprints
but typically seek more aspirational markets.
The H&F market is expected to continue its rapid growth.
Operators are still expanding aggressively and the boutique
market is likely to see serious expansion into the regional
cities in the coming years. However, most H&F expansion is
likely to be in high street locations and is more influenced by
high footfall than other leisure offers.
Competitive socialising is getting a lot of media attention
at present, with some very original concepts around virtual
reality, axe-throwing, table tennis, rock climbing, urban golf
and team ‘break out’ challenges. However, these are typically
niche operations that will pop up in large urban centres
which are unlikely to grow exponentially in the next few
years. Landlords are likely to experiment with some of these
concepts to fill awkward space and to provide interest to
consumers who are constantly looking for fresh experiences.

2221
Consumer tastes in some areas of leisure are changing rapidly,
yet in others remain much as they have in the past few decades.
Understanding consumers’ habits is critical to the future of the sector.
While leisure has helped support many retail locations it is clear that
what works in one location may not work in another.
Central to the consumer context is how consumer confidence impacts
on leisure experiences differently to retail and yet the interaction with
retail and leisure continues to become more blended. While consumer
confidence has fluctuated creating a challenging environment for retail,
leisure has surpassed expectation and remained resilient.
If anything, the last decade has proven that the UK consumer is dynamic
and has altered how they have used their earnings and spent their retail
and leisure time. The retail and leisure market to a large degree has
adapted in line with these changes and is in a much stronger position
to shoulder further economic shocks in the next decade than at the
beginning of the global financial crisis. Fundamentally, any retail or
leisure strategy needs to look past any specific shock to economic
recovery and consider the long-term trends; the consumer desire for
leisure experiences and eating out remains unabated.
The frequency in which we visit different kinds of leisure places and
how much we spend on leisure experiences depends very much on the
leisure, retail, work, or other social journeys that we are on.
Theconsumercontext.
Case study:
Rise of street food market halls
Food market halls are becoming increasingly popular and
provide a very effective bridge for street food operators
wanting to take more permanent space without the need
for committing to long leases. These schemes really tap into
increasing consumer demand for quality, quick and tasty
food from around the world in a very sociable environment
and an opportunity to interact directly with entrepreneurial
vendors who are passionate about their food.
The developer of Altrincham Market took an unloved market
scheme in a struggling North West town and created an
incredibly popular and vibrant eating and drinking scheme
that has helped to revitalise the fortunes of both the market
and the town centre.
On Altrincham’s success, Mackie Mayor was developed in
redundant Smithfield Market in Manchester’s Northern
Quarter. Ten operators service ‘up-market street food’ in a
great environment. The significance of this scheme is that it
was opened late-2017, just as there were cracks appearing
in some of the city centre’s casual dining market. Mackie’s
demonstrates that opportunities exist in many markets that
are already well provided for and that saturation is often a
micro-location concern.

EXPERIENTIAL
COMPARISON
INDULGENT
OCCASIONAL
PREMIUM
DESTINATION
FUNCTIONAL
CONVENIENCE
ESSENTIAL
FREQUENT
VALUE
LOCAL
Health clubs
Hotels
Department
stores
Branded
restaurants
Museums
Fashion
Ski slope
Multiplex
Bowling
Homewares
Bingo
Independent
restaurants
Cafes
Leisure
centres
Grocery
Boutique
cinemas
Retail
services
Gyms
DIY
Pubs
Destination
Community
Convenience Experience
INCREASED
RELATIONSHIP
BETW
EEN
RETAILAND
LEISURE
2423
What continues to drive consumer visits to stores and
shopping centres is the notion of a retail trip as a leisure
pastime. One clear consequence of changes in the last
decade, is that shopping has become polarised between
what we need and what we want. There are many different
retail and leisure journeys, and consumers’ expectations of
experience or functionality vary according to the priority at a
given time.
Importance of different
leisure journeys.
Shopping centres need to be aware
they are being increasingly exposed
to a mix of reasons why people will
be there other than for shopping. It
is important especially for fast food
rather than casual dining. If I go to a
shopping centre for a morning it will
involve a few hours shopping, then
inevitably sitting down for a meal; fast
food is more immediate and whilst you
are on the move.
Restaurant operator
The most significant link between retail and leisure is with
regards to F&B. It has been increasingly heralded by retail
landlords as an essential means to increasing footfall and
extending dwell times and is equally down to the recognition
that many retail journeys are in fact a form of leisure trip.
Consumers are attracted by experience and convenience.
A strong leisure component to the retail experience pulls
shoppers in from further afield who in turn will choose to stay
longer, spend more money and importantly come back.
Without the retail element
of shopping centres what will
happen? People won’t go there
just to eat; it will be for another
activity too. With Amazon
and online retailers becoming
more popular will shopping
centre increase or decrease in
popularity? They keep evolving
so landlords will have to also in
order to last the course.
Restaurant operator
For everyday functional shopping or
leisure trips, convenience is key and goods
purchased are typically essential and bought
frequently, with ‘value’ being important
both in terms of price point and service
experience. For destination trips, time is less
critical than the overall experience received,
which allows for browsing and comparison of
goods, services, or experiences. Visitation
is less frequent and consumers are typically
prepared to purchase higher-end goods or
spend more on eating out.
Applying this principal to different leisure
sectors there is a strong relationship
with convenient functional trips when
visiting grocery stores, retail services (e.g.
banks) and leisure centres; the rise of the
convenience grocery market in recent years
shows how consumers are less willing to
travel to a large store if they can purchase
essentials more locally. For coffee shops
and gyms, the choice of location is likely
to be dictated by the supply being in close
proximity to the demand. By comparison,
specialist shopping trips, such as for fashion
goods or department stores, tend to require
a longer time commitment and travel
distance and will often be linked to visiting
restaurants, or other leisure uses.
The divide is not always clear by a specific sector. Branded
restaurants tend to locate where there is a regional
catchment, such as large retail or leisure schemes, city
centres that also have a large employment base, or close
to other big leisure draws like museums, music/theatre
venues, or ski slopes. By contrast independent restaurants
predominantly serve a local audience.
In addition, with increased constraints on our time, there is
a blending of ‘day parts’, with closer ties between our work,
social and home lives. Leisure operators are adapting their
offer to capture consumers where it is most convenient
for them. For H&F this is around high footfall employment
locations, or transport hubs; for restaurants
and pubs this might include boosting the
breakfast offer, or for cinemas providing
alternative uses to their venues outside of
peak times.
Whatever the time of day, situation or
location, the three most important things to
the consumer that embody every leisure visit
are convenience, experience and service.
These are closely intertwined factors,
however, if any of them fail then the chance
of a repeat visit is significantly reduced.
Polarisation of consumer journeys
Source: Savills
Different retail and leisure journeys by sector
Source: Savills
After a cinema visit,
22% of audiences go
for a meal and/or drink,
14% visit a fast food
restaurant or café and 9%
go shopping.
UK Cinema Association

0
2
4
6
8
10
12
London Rest of the UK
Local high
street
Local
shopping
centre
City/large
town centre
Out of town
mall
Retail park Leisure
scheme
£23 £24
£27
£29
£31
£27
£16 £17
£20 £21 £22 £21
£0
£5
£10
£15
£20
£25
£30
£35
London Rest of the UK
Local high
street
Local
shopping
centre
City/large
town centre
Out of town
mall
Retail park Leisure
scheme
25 26
The importance of a diverse F&B offer on the overall
attractiveness of a retail location is most highly rated
among young people. Generation Z (16-24 year olds) and
Generation Y (25-34 year olds) rated choice of restaurants
as 6.1 and 6.4 out of 10 respectively (where 10 is very
important) in determining where to shop for fashion,
compared to an average of 4.9 across all age groups.
This trend is even more pronounced in London, where the
importance of F&B offer in choosing where to shop was rated
as 7.2 by Generation Y and 6.2 by Generation Z. Across all
age groups, the average importance rating was also highest
in London at 6.1, followed by 5.0 in both Yorkshire & the
Humber and the North East.
Consumer visitation and spend2
.
The less frequently a consumer shops, the
more likely they are to visit a F&B operator on
that trip. An average of 73.2% of consumers
who shop every two weeks visit a food
outlet, dropping to just 31.9% for those
who shop at least once a week. Frequency
of eating out while shopping also varies by
geography and age group, and is highest
among younger consumers. 17.8% of
Generation Z eat out while shopping once
a week, compared to 11.1% for the Baby
Boomer+ group (55+ years). Again, this
disparity is more prominent in London,
where 27.8% of Generation Z and 8.9%
of Baby Boomer+ visit a restaurant while
shopping once a week.
In terms of locations that people visit for leisure experiences,
consumers visit the local high street most often followed by
local shopping centres and town centres. Many of these trips
will be driven, in part, by convenience. Out-of-town regional
malls are more of a destination so their visitation is much
lower than the high street.
The most pronounced difference between the capital and
rest of the country is with visitation to regional malls and
leisure schemes. London consumers, on average, visit these
locations twice as frequently as the rest of the country.
The culture of casual dining in particular
has been long embedded in Central London
on the back of both a constant stream of
affluent white-collar workers aged 25-34
with few family commitments, and a thriving
tourism economy. Outside of London,
town centre shopping centres and leisure
schemes have been the primary access that
diners have had to these brands. In both
cases dining would often only form part of
the overall evening’s entertainment, either
being tied with a visit to the cinema, or
other drinking establishments. Increasingly
the visit would be also closely related to
place of work, a shopping trip or other
social engagement, which points to the
increasing importance of non-leisure specific
properties fulfilling the demand for leisure
experiences.
Frequency of eating out
weekly is at a 4 year high for
18-44 year olds.
CGA
Average visitation per month
Source: Savills/GlobalData
2
The findings in this chapter are based on GlobalData survey conducted in 2017 from 8,000 consumers.
However, while there is a difference with
London there are still high levels of visitation
to leisure schemes and shopping centres
across the country for leisure experiences.
This possibly reflects similar drivers for
visiting these easily accessed locations and
a need for convenience that is universal.
Certainly, the UK appetite for dining out is
catching up with London, first with the major
city centres and affluent market towns, but
gradually many casual dining brands will find
success in smaller less affluent locations.
Much in the way that the coffee revolution
has become embedded in the fabric of UK
society, we foresee casual dining to be much
more prevalent a dining format across the
country.
F&B spend varies by location type with the broad profile
between London and the rest of the UK being similar.
However, actual spend levels in London are ahead of the rest
of the UK with an average of £7.30 more spent per visit than
the rest of the country. The differences are closely tied to the
overall leisure experience being made with F&B experiences
in convenience driven centres and high streets related to
more affordable quick service restaurants and coffee shops,
while in more leisure orientated destinations spend is often
linked directly with a casual dining offer.
There are differences in F&B spending between London and rest of UK for
different age groups. 25-34-year-old Londoners spend £8.70 more in local
shopping centres. Millennial/family demographics spend £6 more in large
centres and malls in London and £3.50 more in retail parks. 45-55-year-
old consumers in London spend on average £10 more in retail parks than
consumers outside the capital.
However, London does not have higher spending in all categories. Older
consumers appear to have stronger spending habits outside of London, with
55-64 year olds spending less in London in local high street and shopping
centres, and leisure schemes, while 65+ year consumers outside London
spend more in shopping centres and leisure schemes. This is likely to be
related to the affluence of older people that live in London.
Average F&B spend by location type
Source: Savills/GlobalData

-£6.00
-£4.00
-£2.00
£0.00
£2.00
£4.00
£6.00
£8.00
£10.00
£12.00
18-24 25-34 35-44 45-54 55-64 65+
Local high
street
Local
shopping
centre
City/large
town centre
Out of town
mall
Retail park Leisure
scheme
Almost all the time (90% - 100% of the time) Most of the time (60% - 90% of the time)
Sometimes (30% - 60% of the time) Rarely (5% - 30% of the time)
Almost never (less than 5% of the time)
Local high
street
Local shopping
centre
City/large town
centre
Out of town mall Retail park Leisure scheme
£0.00
£5.00
£10.00
£15.00
£20.00
£25.00
£30.00
£35.00
2.4
2.5
2.4
2.6
2.7 2.7
2.9 2.9
Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17
27 28
In terms of the frequency of visits, the general trend is similar across all location types and is
perhaps surprising that the most frequent visitors to F&B spend more on average than those
that only visit F&B outlet occasionally. This points to first, that if 50% of visits are made by
20% of consumers and second, this group spends more than less frequent consumers, it
is fundamental to figure out how to best capture this group and how to ensure they remain
brand loyal.
Difference in F&B visit spend between London and rest of the country
Source: Savills/GlobalData
Restaurant spend by frequency when visiting retail or leisure scheme
Source: Savills/GlobalData
Brand loyalty is becoming polarised within different leisure sectors. For cinema and H&F,
consumers remain loyal to their preferred brands and locations. For the F&B sector, however,
it is a challenge. The more mature and varied the offer becomes, the more consumers expect
in return and the more pressure there is on operators to pull in returning customers and hold
market share. This is forcing the industry to become more efficient and of higher quality, which
is good for the customer experience and yet consumers show signs of becoming increasingly
brand agnostic and are often looking for a new or a better experience.
Brand loyalty.
The number of brands visited has increased from 2.4 in
April 2014 to 2.9 by October 2017. In London this trend is
higher; 51% of all branded outlets that London consumers
visit every six months are brands that they have not visited
previously4
.
This indicates both the increase in supply and the eagerness
of consumers to try out new brands and formats. It is also
important that operators do not confuse habit with loyalty
– repeat customers may be driven by other factors such as
convenience and so are still prone to defection as new offers
emerge.
It is important to note that 20% of consumers make up half
of eating occasions and this is often led by the Millennial
group that is often on the top of the agenda as the most
important consumer group for F&B growth, particularly in
London. While Millennials might lead the way with some
brands, having family appeal and attracting the UK’s largest
consumer group, is a key target for the sector. As the market
has grown more families are being drawn to the sector and
there has become an increased expectation for experience,
value, quality and adventure in order to differentiate the
brands.
Loyalty can still be retained by brands with
an affordable and reliable concept. Pizza
Express and Nando’s success is as much to
do with consistency of product and service
and a clean and fresh environment, which
particularly suits families who want to
know what to expect before they arrive. In
delivering these requirements, casual dining
has in effect made it more attractive and
affordable for families to dine out.
However, there is a further challenge for
operators in drawing in customers who
have an ever-increasing choice of places
to eat. The average number of meals had
out per month has fallen from 10 to 9 and
53% of business leaders predict a fall in visit
frequency5
. This means that there are fewer
available visits to capture, by a larger supply
of locations. In the short term at least,
F&B operators are going to have to work
much harder for their market share through
operational efficiency and often through
the adoption of technology and more
streamlined marketing.
4
Source: CGA
5
Source: MCA/CGA
Number of brands visited each month
Source: CGA

3029
Futurologists speculate that almost all new
developments that impact on business and
consumers will be based on some form of
technology.
The role of technology.
It is clear that tech
plays an increasing role in
the consumer experience,
whether in getting
them in the front door,
servicing or entertaining
them while inside, or
helping them to share
their experiences with
others.
Tom Whittington, Director Retail Research,
Savills
Technology is increasingly important not just in retail but
also in leisure. There are a wide range of technologies that
have been launched or are in development – from basic apps
through to robotic chefs. At present, few technological
developments can be described as truly disruptive for the
leisure industry. Rather, there is a broad range of uses for
tech that are providing incremental benefits.
The most significant enabler of tech is undoubtedly the
smartphone. Without the advancement of this technology
online bookings, social media engagement, mobile payments
and delivery services would never have been able to play as
significant a role.
Existing technology can be characterised as falling into one
of two categories:
• Tech that enhances the customer experience
• Tech that provides operational benefits
For landlords the significance of tech is around how
consumers can be drawn to, engaged and serviced within
their schemes and how operators, through increased
efficiencies, can have more sustainable businesses and
provide robust occupational and rental incomes. As yet few
technological developments will significantly alter the future
need for property configurations or store sizes, with the
obvious exception of delivery apps.
Case study:
VR Star, Cabot Circus, Bristol
VR Star offer driving simulators, shoot em’ ups and other
arcade games in a VR setting. Opened in Bristol in March
2018 its first 6 weeks saw 4,000 visitors each paying £30 per
hour. The brand has four more venues planned in Cardiff,
Manchester, Leeds and Swindon, with a total of 60 locations
planned. As a destination they have taken a ‘low footfall’ unit
at Cabot’s helping optimise space utilisation for the landlord.
Other VR providers like DNA-VR, VR Champions, and
Limitless VR in London offer group games, challenges and
puzzles for up to six players.
Tech is being used to increase convenience,
enrich the experience and deliver improved
service. Consumers are seeking ‘on
demand’ experiences – “when, where and
how I want it”. This is leading to operators
adopting technology to deliver experiences
that reduce ‘friction’ while the process in
making the offer flexible enough to respond
to consumer demands and with sufficient
appeal to create a differentiated offer. For
F&B, simplifying the booking, ordering and
payment process through tech is a key
benefit.
Technology for
customer experience.
Delivery and technology go hand
in hand. It’s a high impact area and
it’s important to get it right. It goes
back to the convenience aspect,
whether it’s paying via phone, the
EPOS system on the till all to speed
up payment so you don’t have to
queue as long. All of this is relevant to
us today more so in F&B than retail,
where customers are looking for a
quick convenience led transaction.
Restaurant operator
Efficiency and convenience of experience.
Booking and ordering via smartphones can significantly enhance the overall experience of time poor
consumers. Just under a third of consumers under 35 years of age will book a table in advance. Significantly,
72% of these people will use the restaurant’s own website to book and 52% will access the site using a
mobile device 1
.
F&B operators are benefiting from the use of technology in the ordering process. McDonald’s reported a
5% uplift in sales following the addition of customer ordering kiosks. Table top tech in casual dining brands
increases average spend by £2.60 per person and delivers 20% more sales of starters and dessert. However,
some casual dining brands are limiting the ability to order across the menu (especially main courses) to retain
some degree of social interaction with their staff.
Functionality to enable payment has been added to restaurant apps. Wagamama and MasterCard have
introduced payment on demand via the Wagamamago app. They claim that using the app for payment saves
diners 12 minutes in total, both for the bill and then for a card payment machine to be available. Tablets on
tables are also being used for payment – total dining time is reduced by 31% and speeding up the payment
process leads to increased customer satisfaction. It also allows operators to turn covers more quickly
thereby generating increased revenue.
This technology is significant in that all good operators need to now account for an element of mobile
connectivity. 90% of restaurant brands already have contactless payment. However, with 40% already
allowing for this to be made using a mobile device and a further 21% planning to implement this functionality
in 2018, the connection between a restaurant space and their consumers, wherever they might be located, is
becoming more integrated.
1
Source: CGA

90%
48%
40%
35%
27%
23%
18%
6%
21%
21%
22%
33%
28%
23%
4%
32%
39%
42%
41%
49%
59%
Contactless payments
Ability for consumers to split bills
Pay via phone
Technology to place orders
More ways to pay
Pay via app
Order via app
Already implemented
Planning on implementing in 2018
Not implemented/not planning on implementing in 2018
31 32
29% of consumers have used a mobile device to either
order or pay for food or drink.
CGA
Social media.
The importance of social media as a tool for communication
with consumers is widely recognised. Brands have been
able to use social media listening to gain feedback on their
offer as well as using direct interactions with customers.
With customers so keen to share their experiences on
social media or be influenced by it, a positive experience
is equivalent to free marketing. As a consequence, many
operators are investing heavily in it.
The rise of ‘Instagram culture’ is presenting opportunities
to attract customers directly. Social media, especially
Instagram, is an important means of sharing experiences.
52% of 18-34-year-olds have uploaded images of a meal
or drink to social media. The challenge for operators is to
ensure their food and drink is presented in an appealing
manner while highlighting key brand messages.
The appearance of uploaded food images is
being taken very seriously by some outlets -
Ikoyi London has lighting set up to highlight
the food on the table, thereby optimising
picture quality. Dirty Bones encourages its
customers to upload images and has even
developed an ‘Instagram kit’ to help diners
take the perfect picture of their food. There
are countless interesting developments
like this across the globe, however it is very
much in an experimentation phase.
Technology provides an opportunity in making
customer ordering easier and more user friendly.
What advancements in technology have you already implemented or are you
planning on implementing in 2018?
Source: CGA
* The chart does not show all the options
Entertainment experiences
and Virtual Reality.
For leisure operators, technology provides a means of
attracting consumers out of their home for a superior
experience in their venue, with affordability of new
technology often being a barrier to in-home adoption. There
is a wide range of tech designed to enhance the customer
experience.
Tech is being used to add a modern spin to traditional
activities and plays an important role in many competitive
socialising outfits. Bounce describes itself as Europe’s
largest ‘Social Ping Pong Club ‘, where people can dine, drink
and play table tennis. The tables use ‘wonderball’ technology
so that they become interactive surfaces allowing a range
of games to be played as well as controlling the experience.
Flyte Club uses tech in a similar manner to enhance and
socialise the game of darts. Clubs such as Rebel Bingo and
Bongo’s Bingo use technology to fuse playing bingo with a
nightclub atmosphere of live music and dancing.
Tech is also playing a key role in enhancing existing customer
experiences. 4D cinema takes three-dimensional projection
and adds movement to the environment – typically using
moving seats. 5D cinema adds live special effects such as
smoke and water mist. Interactive tables are being used
to enhance the dining experience. Inamo London has
interactive tables so diners can select lighting effects to
change the ambience and suit their mood. They can also
use the table to play games, find out local neighbourhood
information or watch a live feed ‘chef cam’ that brings them
action from the kitchen direct to their table.
VR is widely anticipated as the next big disruptor for the
leisure and entertainment industry. Improvements in the
technology used to deliver VR are making highly realistic and
immersive experiences possible. However, this tech remains
at a cost that is too high for most private consumers. This
price barrier presents leisure operators with an opportunity
to lure consumers out of their homes and into their venues.
While the quality of VR continues to improve, there is still
limited adoption of it within the market. At their Westgate
Oxford cinema, Curzon have curated special VR events for an
invited audience who are encouraged to socialise and share
the VR experience afterwards. Odeon opened its first VR-
Imax at the Trafford Centre in Manchester in late 2017.
There are several ‘fully immersive’ VR arcades open in the
UK, including DNA-VR, VR Champions, and Limitless VR
in London, VR Star in Bristol and Virtual X in Birmingham.
These operations typically offer multiple games, ‘escape
rooms’ and experiences for up to six players. There are more
operations planned, however, ownership is fragmented
with no clear brands to date. Like much of the competitive
socialising sector, VR-arcades have destination appeal, do
not typically need to be in prime locations and can take units
that might be compromised for other leisure
(or retail) uses. This presents an opportunity
for landlords who want to improve the appeal
to their schemes and optimise use of space.
VR has been slow to develop over two
decades, during which time there have been
several technological revolutions that have
been far more significant. While gaining
some traction VR is not yet a disruptor and
as such seems limited to niche applications
across the leisure market for the near future.
VR is on everyone’s
radar. We’ve been to
Japan and looked at VR
and some of it is fantastic.
But it’s an experience not
a game. So, as an adult,
you’d look at it and think
it was a cool experience,
but given that the ending
is always the same why
would you do it again?
Laurence Keen, CFO, Hollywood Bowl

3433
With limited store portfolio growth in the short term and
other headwinds compounding already tight margins,
operational efficiency is key to the sustainability and growth
of leisure operators, particularly in F&B. Technology is
becoming increasingly accessible, allowing operators to
adopt sophisticated business management systems that
can deliver real improvements in terms of:
• loyalty, promotions and marketing
• customer feedback
• enhanced asset utilisation
• delivery logistics
Some of these developments are making a real difference to
operational efficiency, which is key to long term sustainability
of businesses and should therefore also be on the radar of
landlords. In particular, the data captured by operators could
also be invaluable to landlords who could use the intelligence
gathered to better understand the demographics, footfall
and spend profiles of their schemes at different points in the
day.
Loyalty and promotions.
With the current consumer obsession with mobile apps it is
no surprise that leisure operators are keen to use these to
engage more with their customers, and improve loyalty and
frequency.
Branded apps for booking, ordering or paying are helping
some brands to increase footfall. It is no longer necessary
to develop entirely bespoke branded apps as there are
companies providing this facility more affordably. Como
is a provider of branded mobile apps that integrate loyalty
and promotions. This enables operators to engage with
customers across multiple communication channels. They
claim an impressive 48% uplift in purchase frequency and
41% increase in monthly spend for customers using their
solutions.
Improving customer satisfaction
and experience.
Technology is enabling businesses to engage more closely
with their customers. Operators often rely on customer
comments on review sites as a means of feedback and
promotion of their business and consumers are quick to
select an experience based on these reviews. However,
review and booking websites can lack transparency when
listing choices to consumers and may be determined by the
amount an operator is willing to pay, as well as often only
highlighting the best and worst experiences.
Technology for operational
benefits.
Increasingly, technological solutions are
allowing restaurants to capture customer
views in the moment. These views are likely
to be more honest and reflective of the
actual experience. For example, Yumpingo
have developed a solution that is in capturing
consumer data at point of sale. The upshot
for the operator is twofold:
• First, they can build up an operational
profile for the manager or business leaders
on what is working or failing. The operator
can spot common issues and measure
their improvements over time. Harvester
has stated that using this app they have
captured an average 2,200 dish reviews
and 3,500 service reviews per month
per venue, which provides them with an
unprecedented level of information they
can act upon.
• Secondly, by capturing customer contact
data at the point of sale and with their
preferences, they can understand better
the demographic of their visitors, tailor
marketing campaigns and have the
potential to personalise a visit when a
customer returns.
Enhanced asset utilisation.
Managing demand can be a challenge for
leisure operators. Leisure units that are
groaning under the weight of customers
at peak periods are often nearly empty at
other day parts. Smoothing out demand
throughout the day has clear benefits in
terms of allocating resources and utilising
space effectively.
Hollywood Bowl runs 58 bowling centres
that typically occupy 30,000 sq ft of space.
It has invested heavily in CRM systems so it
now has sufficient data to introduce dynamic
pricing – prices vary according to the number
of people wanting to bowl at a particular
time. This demand-led approach allows for
more accurate pricing by matching actual
demand with availability. Another benefit
of dynamic pricing and serum data is in the
area of promotions; targeting customers
on the basis of their previous behaviour.
On average, consumers go bowling less
than twice a year – targeted promotions
with prices designed to appeal to individual
customers are driving visit frequency
upwards.
The introduction of food delivery services such as Deliveroo
and Uber Eats is one of the most impactful developments for
the restaurant sector in recent years, effecting consumers
and operators in very different ways. For consumers there
are significant benefits to be able to access a vast array of
hot food outlets, while for operators there are both potential
benefits and exceptional challenges in fulfilling this demand.
There is little doubt that this technology is proving to be a
remarkable market disruptor.
The UK delivery market was worth a total of £6.7 billion in
2017 and is forecast to grow even further with predicted
revenues of £7.5 billion for 2018; Deliveroo alone saw its
sales increase by 600% in 2016. According to Pragma, 54%
of the UK population have used a delivery platform when
ordering a takeaway in the past 12 months – 83% in London.
Millennials are particularly heavy users of delivery services
(sometimes ordering two to three times a week) and this
group tends to be relatively insensitive to price.
Delivery services are bringing something new to the market
that goes beyond traditional delivery. They are offering a
full logistics service from ordering through to fulfilment,
which is something that has been tried in the past by
restaurant operators but with limited success. Both Pizza
Express and Wagamama have tried to introduce their
own delivery services, only to withdraw them when the
F&B and delivery.
logistics proved too challenging. 3POS have
developed their own tech infrastructure
that provides a consumer-friendly app and
order management system at an affordable
development cost to the operator. However,
as restaurants have to provide their own
delivery mechanism many restaurants will
lack the critical mass of orders to justify
hiring their own drivers.
The benefits to operators include extended
trading hours during the whole week,
increased sales potential and a new
customer base. Many Grab and Go operators
in London that would previously have closed
after working hours are now able to sustain
evening trade.
pre 1999
Ad-hoc delivery from
local takeaway
1999
Domino’s launches
online ordering
1999
Domino’s launches
online ordering
2001
JustEat launches as
‘menu aggregator’
2011
Domino’s launches
delivery app
2013
Deliveroo
launches in UK
2016
Uber Eats
launches in UK
2018
Deliveroo YOY revenue
growth of 600%
We’re making a
conscious decision to
have restaurants with
two accesses. Having
a busy restaurant and
a queue of cyclists
coming out the door
doesn’t work well with
our customers. We want
the eat in experience to
be perfect.
Restaurant operator

35 36
However, there remain many operation challenges to incorporating a delivery
service to the offer, including:
• Cannibalisation. Many local operators are concerned that they now
compete with operators from further afield.
• Costs. Deliveroo charges restaurant operators commission of 25% to
30% of the order value. This significantly impacts the return for each item
sold and while some operators are seeing a significant increase in volume,
operational efficiency is reduced.
• High demand for kitchen space during peak hours. A further challenge
is meeting demand, especially at peak periods. Some units are operating
well in excess of the original intended capacity. This creates problems for
some operators so that they have to ‘switch off’ delivery to avoid harming
the eat-in customer experience. Wagamama have introduced a separate
counter and waiting area for deliveries. Others are considering separate
entrances for delivery when planning future premises.
• Quality of dining experience. Customers complain of long waiting times
in restaurants while the operator fulfils takeaway orders, or the restaurant
ambiance is reduced by an influx of delivery drivers.
• Lack of transparency with feedback. A perceived lack of transparency
does not help allay operators concerns. Deliveroo has been criticised by
operators for not sharing the customer data they collect, which prevents
operators making improvements to their offer or learning what made or
broke an experience.
Overall, the sentiment within the industry towards delivery is either positive,
or resigned acceptance. Operators recognise that there are challenges
that require them to change their business model and operations or be left
behind.
Whatever shape the future business models of delivery operators take, it
seems certain that delivery is here to stay. Those F&B operators with the
ability to flex and adapt to meet the challenges posed by delivery look likely
to prosper from the opportunities that it presents. For landlords, the growth
in this sector is likely to result in new occupants rethinking their space and
configuration requirements and appropriate access for drivers.
Delivery is growing quickly and it is
absolutely, 100% cannibalising restaurant sales.
Whatever way you look at it; it is taking margin
out of restaurants. A lot of places I’m talking
to tell me they are flat in terms of sales growth
because of delivery, and delivery might be 10-
15% of their business.
Morgan Davies, CEO, Barburrito
The evolving place of leisure in customers’ lives will affect
different centres in different ways. The leisure industry is so
diverse that there is not one approach that fits all. However,
in the quest to match the right operator, in the right location,
with the right lease structure, what is common for both
landlord and operator is the need for flexibility, a response to
changing customer requirements and to customer feedback.
Looking forward:
considerations
and responses.

37 38
Case study:
12th Street, Milton Keynes
When leisure specialist, Otium Real Estate bought 12th Street in Milton
Keynes (previously known as the Theatre District) in July 2016, the scheme
was in a poor physical state, had high voids and lacked a clear identity, as it
failed to adjust to an evolving market.
The scheme is nearing the end of a major transformation following some
imaginative thinking around identity, variety and a letting strategy that
focuses on affordable rents and space optimisation. To date, Otium have
refurbished the scheme completely and done seven different non-F&B
leisure lettings before doing a restaurant letting, including urban golf, a
desert parlour, escape rooms, a microbrewery, a virtual reality/gaming centre
and kids play operator, several of which are not interested in prime ground
floor space and need large floor plates. The occupier mix provides a clear
point of difference with other leisure schemes in Milton Keynes and has
increased footfall and sales throughout the scheme with the new occupiers
acting as ‘mini-anchor’ occupiers. Existing occupiers are now extending
leases and reinvesting in their space.
Otium bought the scheme at rent levels that allows it to offer sensible
sustainable lease arrangements to its occupiers. While clearly not a model
feasible in all locations, this demonstrates that occupational demand can be
found in surprising places when the opportunity, location and affordability
are right.
The relationship between retail and leisure
will become increasingly symbiotic, with
mixed use increasingly important. Leisure
can extend the duration of retail trips, as well
as opening different parts of the trading day.
New leisure openings can create a sense
of novelty and buzz and introduce the new
experiences that customers are looking for.
Greater synergy between leisure and retail
has the potential to develop even more
memorable and engaging places and deliver
further improvements in footfall and repeat
visits.
Cinemas have been at the centre of urban
regeneration projects for some time, often
local authority backed, creating a night
time economy and drawing in new visitors.
They are not though the solution for all and
success means understanding how much
leisure any one area can support. Large
format cinemas have worked well as scheme
anchors, with a business model of five or
more supporting F&B outlets. In some
instances, lower rents are paid by cinema
operators, with a consequent impact on
rental income. F&B operators may have paid
higher rents to make the proposition more
viable, but this may not be sustainable in the
future.
However, in the current climate many F&B
operators are more cautious about opening
new sites. This situation does increase the
appeal of boutique cinema operators and it
is expected that this format will continue to
expand as a consequence.
Space and location.
Case study:
Westgate, Oxford
Counter to challenges in both the retail and F&B markets,
Landsec’s Westgate opened its doors in late-2017. The
scheme is a classic example of a prime city centre shopping
centre with a comprehensive fashion led retail mix anchored
by John Lewis and complimented by a strong food &
beverage offering of 30 F&B vendors and a boutique cinema.
The scheme stands out for the quality of the F&B offer.
Westgate Social on the lower ground floor offers a shopping
centre food court environment, except none of the usual fast
food brands are present and instead there is an array of quick
service street food style operations, flanked by Junkyard
Golf.
The rooftop terrace has ten casual dining and bar brands
that have been selected to provide minimal overlap in terms
of offer and anchored by Curzon cinema. The real point of
difference is the outward looking vista over the rooftops and
spires of Oxford, which is unique in the UK.
Westgate’s leisure offer is a fantastic and prominent example
of a scheme developed during a period of significant sector
challenges and with its target market of affluent resident,
tourist and student populations in mind. It would be difficult
however to replicate the scale of offer in many other places
in the UK.

39 40
The H&F sector has shown rapid growth at both the premium
and economy ends of the market. The gym business model
has seen a diversification from large standalone units that
require a dedicated trip. Smaller units in higher footfall
locations are seeing growth. They offer scope for no-frills
gyms for budget operators – such as easyGym – and also
the more inclusive, intimate space for higher end customers
seeking a more indulgent experience, such as F45 Training.
Creating communities and socialising is part of the offer
from new gyms that is supported by smaller sized units,
less than 5,000 sq ft. Given this, they can occupy spaces
previously used for retail. And while they want footfall,
they do not necessarily need prime ground floor locations.
Smaller gyms need relatively fewer members to be viable.
The last five years have seen very
strong growth in the gym market.
Memberships went up again last year
so despite all the bluster about Brexit
and disposable income, the total income
gym membership went up and revenues
went up number gyms went up, quite
incredible that the sector keeps going
from strength to strength.
Ashley Blake, CEO, Otium Real Estate Ltd.
Other leisure operators, including several
high-profile F&B brands, are also finding
non primary locations more appealing.
They have made a conscious decision
to trade off the reduced footfall of such
locations against lower rental charges. This
allows them to invest more in the overall
experience; in this creating value that drives
repeat visits. Several competitive socialising
brands are also using these locations,
with consequently lower rents. They view
themselves as a destination in their own
right; proximity to a high footfall location is
enough.
If you look at some of the
brands that have done well,
like Loungers and Turtle Bay,
they turned their back on
those prime rents, they said,
‘I’m never going to pay those
rents. I would rather do a
slightly less turnover around
the corner where you can’t
see me and pay half the rent.
I’ll do 30% less turnover than
you, because I’m not in this
high-profile situation but I’ll
pay less than half the rent
of you. And overall, I’ll make
more profit.’ And those are
the ones that are doing well
now.
David Bell and Carlene Hughes, Savills
I think the days of upward only
rent reviews are numbered given
where the market is. I would welcome
leases linked to CPI or RPI. From an
operating business point of view, I will
be increasingly looking for that, I think
landlords might welcome them too.
We have a few leases that are inflation
linked and make it easier to budget.
Restaurant operator
The demand for space in recent years has
often outstripped supply, especially in prime
locations that are suitable and affordable for
operators. Competition for space has led to
some instances where F&B operators are
paying rents equivalent to retail. However,
in the new challenges facing the market,
both landlord and operator are looking at
what adjustments are required to secure
a sustainable future. The case studies in
Milton Keynes and Oxford, both show in their
different ways, successful responses to a
changing environment.
A wider range of lease structures are another
likely response, to reflect the different needs
of different operators, and evolved through
closer co-operation between landlord and
occupier. The re-evaluation of the existing
leasing model might be another response in
a challenging environment. There needs to
be alternative approaches.
It should not be surprising that operators run
into difficulties when the market becomes
saturated or other costs increase, if they had
expanded quickly almost regardless of cost.
Private equity firms have been criticised for
the tranche of CVAs in 2018, however, these
companies have also provided the footing
for growing the casual dining sector, which
enriched environment.
The competition and upward pressure
on rental levels has led to some leisure
occupiers paying high rental values. In some
cases, the unsustainable rents might need
adjustment.
Lease structures and rental levels.
For conventional lease agreement there is some increasing
use of rent reviews that incorporate some form of index
linking. Occupiers find that linking rents to the Consumer
Price Index (CPI) or Retail Price Index (RPI) provides them
with a greater ability to forecast in the medium term.
Usually these linked rents are based on a “collar and cap”
arrangement. In general, rent reviews take place every five
years during a tenancy.

41 42
Turnover rents have become more common for some F&B
operators and landlords, with one landlord stating that
90% of their leisure leases are turnover based. With the
base rent discounted, but with an element of top-up on
reaching performance thresholds, these are favoured by
some because they provide a degree of reassurance during
the critical first few years of operation and help landlords
attract occupiers. They allow landlords to monitor occupier
performance regularly and spot emerging issues.
We also have a few turnover rents
– they can de-risk the store in its early
days until we know what it can do. No-
one minds if we are generating lots of
revenue we are happy to pay more rent
and turnover leases are a very good way
to do that.
Restaurant operator
With the leisure market in a state of flux both
landlord and occupier seem nervous in many
instances about taking long leases. However,
changing to shorter leases does not always
suit both parties. For landlords there are
development costs to recoup, security of
income and ultimately valuation concerns,
balanced with the flexibility to keep the offer
fresh and dynamic. For occupiers, particularly
newcomers, there is recovering fit-out
costs and insecurity of tenure, against being
committed to long leases.
Cinemas have significant fit out costs and
it is not uncommon for these to exceed £3
million. Consequently, cinema operators
want to amortise these costs over as long
a period as possible, with 20-25 year leases
remaining commonplace. F&B operators will
typically spend around £500,000 to £1 million
depending on their size and geographic
location. They may therefore seek a 15-year
tenancy with the intention of recovering their
fit-out costs over the first half of that lease.
There is the concern among some operators
that response may be to reduce lease terms
in order to have more control on the occupier
mix. While it is not anticipated that the lease
duration will change in the short term, both
parties will continue to make use of break
clauses.
Landlords are re-thinking their space and considering the
evolution of the centre. In some, this might see a portion of
retail and leisure space being repurposed, much in the way
that we have seen shops and banks being converted into F&B
outlets in recent years. Flexibility is an important part of the
solution, but it is not always easy to implement. It requires
close asset management, creativity and often a step away
from traditional tenant portfolios, leases and approach to
valuation and rents.
Flexibility of tenant mix can attract footfall throughout all
the different parts of the day. There is a growing trend for
customers to combine activities traditionally conducted in
separate day parts. Extended opening hours will be required
so that they can deliver quality experience on demand, at a
time of the customers choosing.
Leisure has the potential to fill empty units but tactical fixes
are likely only to be short term. Sustainable solutions will
come through careful consideration of the demographic and
behavioural profiles of customers in a particular catchment
area. The future is finely tuned.
It is unlikely that a single “one size fits all” solution will be
found to fill empty space, or that one strategy will be suitable
for a portfolio of properties. New types of occupier are being
sought, with some elements of a scheme adapted for offices
or residential occupiers. Other parts may be converted into
curated open spaces in the continual search for different
experiences, repeat and new visits. New strategies will
evolve in response to careful consideration of the role and
purpose of the centre in any community; small or large, local
or regional.
Flexibility of approach.
Asset managers that specialise in leisure are used
to that, these covenants are weak, they’re emerging
companies. If you’re a good leisure asset manager
you know your cinema, bowling and restaurant
tenants will be strong covenants, rarely will the
facias change. There are other areas of leisure that
are interchangeable like trampolines, soft play and
gyms have a shorter life cycle. If you have a problem
unit like a former nightclub or a casino unit, these
are fantastic at plugging that gap and helping to
rejuvenate a scheme that hasn’t seen too much
footfall in the past.
Leisure operator
In retail we have witnessed a polarised
market where convenience and individuality
are becoming increasingly important in
defining what happens in the space. This
is just as important in leisure. The boom
in some sectors is having a strong and
positive influence from independents on
the back of a young and thriving consumer-
come-entrepreneur. From the branded
coffee boom, Artisan coffee houses are
returning; from the rise in casual dining,
ethnic and healthy food is on the rise from
independents and street food markets. And
the growth in H&F is seeing a number of
unique and boutique style gyms.
This rise of the independent is one of the
positive stories of leisure that will make
its mark over the next few years and with
it, the opportunity to revitalise schemes
and provide a point of difference. Less
homogeneous schemes with a higher
proportion of independents mean bigger
risks for landlords, with challenges to
valuation and occupiers perceived to have
weaker covenants. However, there are clear
signs that the lack of uniform is exactly what
appeals to many consumers and that this
variety will be the shape of things to come.

43 44
A mixed methodology was adopted in order to address the project
objectives. A detailed secondary desk research using a range of sources was
conducted. This was supplemented by a series of one-to-one consultations,
mostly face-to-face with a range of key figures within the industry in order
to develop the thought leadership strand within the project on attitudes and
behaviour both now and going forwards.
Savills and Aspect undertook a total of 14 formal consultations took place
during January to April 2018, along with many more informal consultations at
industry events such as Casual Dining 2018 and The UK Cinema Association
2018 conference. Respondents represented landlords, restaurant operators
and leisure operators.
As part of the assessment of the leisure market across the UK 7,000
different retail places have been assessed, including 4,761 high streets
(town and city centres), 1,126 shopping centres and 1,100 retail/shopping
parks and leisure schemes. Within these locations Savills has drawn on Retail
Universe data (a database of all retail and leisure brands nationally) for an
assessment of past, current and growth of brands by leisure sub-sector.
GOAD data have been used to assess planning designations and change of
use, as well as to provide an assessment of floorspace usage.
Some insights have been gained on how frequently consumers visit
restaurants at different kinds of retail and leisure places and how spending
levels vary by location from a GlobalData survey conducted in 2017 from
8,000 UK consumers.
For this report, data has been extracted from the survey related to frequency
of visit and levels of spend related to different kinds of retail and leisure
destination.
This survey asked consumers about their visits to six location types as
follows:
• local high street
• local shopping centre
• city/large town centre
• out-of-town mall
• retail park
• leisure scheme
Methodology.
A1 Shops which are used for all or any of the following purposes:
(a) for the retail sale of goods other than hot food
(b) as a post office
(c) for the sale of tickets or as a travel agency
(d) for the sale of sandwiches or other cold food for consumption off the premises
(e) for hairdressing
(f) for the direction of funerals
(g) for the display of goods for sale
(h) for the hiring out of domestic or personal goods or articles
(i) for the reception of goods to be washed, cleaned or repaired
where the sale, display or service is to visiting members of the public.
A2 Financial and professional services with use for the provision of:
(a) financial services, or
(b) professional services (other than health or medical services), or
(c) any other services (including use as a betting office) which it is appropriate to
provide in a shopping area,
where the services are provided principally to visiting members of the public.
A3 Food and drink for the sale of food or drink for consumption on the premises or of
hot food for consumption off the premises.
A4 Drinking establishments such as public houses, wine bars or other such
establishments.
A5 Hot food and takeaway for the sale of hot food consumption intended for
consumption off the premises.
D2 D2 Assembly and leisure - cinemas, music and concert halls, bingo and dance halls
(but not night clubs), swimming baths, skating rinks, gymnasiums or area for indoor
or outdoor sports and recreations (except for motor sports, or where firearms are
used).
Non-traditional D2 Unofficial planning category covering emerging leisure formats including those
designed for competitive socialising.
Competitive
socialising
Competitive socialising is an emerging part of the leisure industry driven by
consumer demand for new, innovative forms of entertainment. The concept
of competitive socialising is based upon the combination of socialising and
competition, typically within the environment of a bar, or a club.
F&B Abbreviation for food and beverage - food and beverage can be defined as the
process of preparing, presenting and serving of food and drinks to the customers.
While it can include off-premises or outdoor catering we are using the term to
food prepared on premises and then either served on premises or delivered to
consumers.
H&F Abbreviation for health and fitness – any premises that are designed to maintain
and enhance the physical and mental health of the individual. In property terms,
this will often refer to gyms but there is an emerging sector of general ‘wellness’
centres that may include spaces for meditation, massage and relaxation/
pampering.
Definitions.

Revo
Charter House, 13-15 Carteret Street
Westminster, London SW1H 9DJ
hello@revocommunity.org
revocommunity.org
DAC Beachcroft
100 Fetter Lane, London, EC4A 1BN
dacbeachcroft.com