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January 30, 2011

Crunching Food Court Numbers

From the article in Businessworld:



The young and the restless view it as a “cool” place to hang out. Poovili Manan, a commerce graduate from Chennai, says it “allows us to experience different brands (of foods) each time”. You can take your pick of the fare on offer — Chinese, Italian, south or north Indian or blends such as Arabic and Continental. Or hang out at “brands” — McDonald’s, or a KFC. There is something out here for the silver-haired, too. For them, it is less about food brand, and more about a sense of the community.

Now to the food court math. “The revenue from food courts in our malls is commensurate with the area it has as a percentage of the overall mall. That is about 8-10 per cent of the overall leasable area. And revenues are the same in terms of contribution,” says Arindam Kunar, mall head and vice-president, DLF Place Saket in Delhi. The national capital is an exception — food courts generate nearly 15 per cent of a mall’s revenues due to extremes of weather. Many throng a mall during the city’s biting winters and sweltering summers. Some end up having two meals during a six-hour walkabout.

Arun Natarajan is the Founder & CEO of Venture Intelligence, the leading provider of data and analysis on private equity, venture capital and M&A deals in India. View free samples of Venture Intelligence newsletters and reports. Email the author at arun@ventureintelligence.in