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ORANGE COUNTY, CA—There has been an immense influx of specialty and craft food-and-beverage operators entering the Orange County market from San Francisco and L.A., as well as quality local operators, Cushman & Wakefield director Jennifer Pelino tells GlobeSt.com.
Food-and-beverage uses have become among the strongest in Southern California, and the Orange County market is no exception. As Pelino recently observed, “This is an exciting time for the restaurant culture in Orange County since the trend overall for shopping centers is more focused on food and beverage than ever before. It is great to see the malls embrace boutique food operators and steer away from the more traditional big 'chain' restaurants.”
Pelino notes that Hopdoddy, an Austin-based burger-and-craft-beer eatery, opened up at Fashion Island a few years ago, and at that time, the brand did not have many other locations. “It was also exciting to see Juice Served Here open up there as well. With the addition of two new retail lifestyle centers—Lido Marina Village and Pacific City—we continue to see positive changes in line with urban trends. Craft coffee shops and eateries from Los Angeles and San Francisco such as Philz Coffee, Zinque, and Nobu have entered Orange County, as well as local operators such as Lido Bottle Works, Bear Flag Fish Co. and Pie-Not, which have established themselves with high-quality food and experiences.”
We spoke with Pelino about some of the food-and-beverage trends she is noticing gin Orange County and why the malls are eschewing the traditional chains in favor of some boutique food operators in this market.
GlobeSt.com: What are the major food-and-beverage trends you're noticing in Orange County?
Pelino: There is an immense influx of specialty/craft food and beverage operators entering the market, whether it be from urban markets such as San Francisco or Los Angeles or quality local operators. A year and a half ago, there were hardly any craft coffee shops, and today we have a great variety to choose from (e.g., Kit Coffee, Honor Coffee, Neat Coffee). Eateries from Los Angeles and San Francisco such as Philz Coffee, Zinque, and Juice Served Here have also entered Orange County. Lido Bottle Works, Bear Flag Fish Co., and 2145 Pizza are a few examples of local operators that have opened or expanded in the past 12 months that are amazing options. Bear Flag now has three locations, as well as another concept, Wild Taco. Further, Nobu, a globally recognized Japanese restaurant, also opened its highly anticipated waterfront location at the revitalized Lido Marina Village earlier this year.
GlobeSt.com: Why are malls embracing boutique food operators and steering away from the more traditional big “chain” restaurants?
Pelino: This is the way food and beverage is moving: you have to keep the consumer excited about the next best thing. We are of a generation in which everyone travels and experiences new concepts, so they have to keep up with these latest trends in order to attract and maintain their customers. And these boutique operators have been well received. Food has always been a way to draw traffic into the malls, so now, with even higher-quality operators, it's very important.
In Europe and Asia, food and beverage is almost one-third of the tenant mix. US malls are beginning to increase their tenant percentage significantly toward restaurant and food, but many are going from just 5% to 15% indicating, that the US is still catching up in this area.
GlobeSt.com: What else should our readers know about this topic?
Pelino: With the addition of Lido Marina Village and Pacific City and a massive renovation and expansion at Irvine Spectrum, there are more and more choices at the consumer's fingertips. Food halls are also still emerging in Orange County, as well; everyone saw the success of the Packing House in Anaheim, and the trend does not seem to be slowing. Overall, it's a really exciting time in OC for food and beverage.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
