New Yorkers Spend 130% More Dining Out than US Average
Although maybe not great for the pocketbook, it’s a good boost for real estate’s retail sector according to a recent CBRE report.
NEW YORK CITY—Real estate professionals have been looking at experiential retail—especially in the food & beverage sector to counter the decline of sales at brick-and-mortar locations. This is even more pronounced in New York City, where people spend 130% more than their peers across the US on restaurant and take-out food, according to a CBRE May 2019 retail report.
The brokerage firm reports New Yorkers spend $8,082 per year on restaurant dining compared to the national average of $3,512. They state F&B spending is expected to continue to outpace other retail categories in the next five years, in New York and across the country.
In real estate, F&B transactions amounted to 20% to 35% of the total number of deals closed in Manhattan since 2015. CBRE also notes in New York City F&B employment has grown faster than overall retail and at a quicker pace than employment in the city, generally.
“The F&B industry is consistently the most active tenant type in Manhattan when it comes to the number of deals. This industry is an integral part of retail spending in New York City, and it’s continuing to grow,” says Nicole LaRusso, director of research and analysis for the tri-state region.
CBRE attributes New Yorker’s higher F&B spending habits to the following reasons: Single person households account for 46% of the total compared to 27% nationally. New Yorkers also live in smaller spaces with more limited size kitchens. As a pedestrian oriented city, people are inclined to eat out more having many more options readily available than in other cities. Plus, eating at restaurants offers a communal aspect with other diners. Finally, the report notes the F&B tab for a meal in New York in general costs more than elsewhere in the country.