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Food Courts and Their Leasing Issues
We've all been to food courts. In the typical food court, landlords group several restaurant tenants and other food service providers in one area, incorporating a centralized seating area for customers to eat in once they have purchased their food from the various restaurants. Food courts create interest and excitement in enclosed regional malls, and they serve as a means of extending the visit time of each customer to the shopping center. Thus, they are a great boon for the mall owners and tenants alike.
But although the concept has been very successful in the retail industry, a collection of tenants serving food and beverages in one location presents several issues and problems for both landlords and tenants. Those issues suggest certain aspects of food-court tenancy that should be discussed and addressed during lease negotiations, so that both landlords and tenants end up receiving what they expect to receive from the food court experience.
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