5 Reasons to Consider F&B Earlier in the Development Process

Food and beverage is often introduced into a development once the wider vision, architecture and commercial strategy are already well established. At this stage, F&B may still be seen as important, but it has to operate within decisions that have already been made.

For modern mixed-use developments, hotels, residential schemes and destinations, this can limit the value that hospitality is able to create. Restaurants, cafés, bars and food halls can influence how people move through a place, how long they stay and how they perceive the wider development.

The precise role of F&B will vary by project, but considering it earlier allows its commercial, operational and experiential requirements to inform the development before key decisions become difficult or expensive to change.

• Shape a distinctive identity and stronger sense of place
• Build the F&B mix around genuine market demand
• Create spaces that are operationally and technically viable
• Strengthen the commercial performance of the wider asset
• Reduce development risk and retain flexibility for future change

1. Use F&B to Create Identity and Bring the Place to Life

F&B is often one of the most visible and frequently used parts of a development. Restaurants, cafés and bars typically interact directly with streets, plazas and public spaces, making them an important part of how people experience a destination.

A strong hospitality offer can give people a reason to visit even when they have no other reason to be there. It can create activity at different times of day, support the social life of a neighbourhood and give a new or regenerated area a recognisable identity.

This contribution cannot be achieved simply by allocating a certain amount of ground-floor space to restaurants. The type, location and relationship of the venues all matter.

A cluster of complementary restaurants around a public square, for example, might create a strong social destination. A neighbourhood café positioned near residential entrances could support daily use and community interaction. A destination restaurant may be placed where it can draw visitors further into a development and activate a less visible area.

The F&B offer should also reflect the intended identity of the place. A development positioned around wellness, culture, family life or premium hospitality will require different operators, price points and experiences.

When F&B is considered early, it can help define the character of the development rather than simply occupy spaces within it.

2. Match the F&B Mix to Real Market Demand

The decision about how much F&B to include should be based on what the market can realistically support.

This requires a view of the overall market dynamics, including existing and planned competition, population growth, tourism, office occupancy, residential development, customer spending and activity across different times of day.

For major developments, demand modelling can help assess the potential contribution of residents, workers, hotel guests, local communities and destination visitors. It can also consider how demand may change as different phases of the masterplan are completed.

This analysis should then inform the amount, format and phasing of F&B provision. Too little hospitality can limit activation and destination appeal. Too much can fragment demand and create an unsustainable trading environment for operators.

The same evidence should guide the mix of concepts. A successful F&B destination needs more than several good restaurants. Each venue should serve a particular audience, occasion, daypart or price point.

Depending on the project, the mix could include:

• Everyday cafés and convenience-led concepts
• Casual restaurants serving residents, workers and families
• Social venues supporting group and evening occasions
• Destination restaurants attracting a wider catchment
• Flexible spaces for events, pop-ups or emerging brands

These examples will not apply to every development. The priority is to create a complementary ecosystem based on identifiable demand, rather than a collection of operators competing for the same customer at the same time.

Considering this early also allows the F&B strategy to inform the masterplan. If the demand analysis does not support the proposed amount of restaurant space, it is better to identify this before unit sizes and locations are fixed.

3. Design Spaces That Operators Can Make Work

Restaurants and hospitality venues have specific technical and operational requirements that can be difficult and costly to introduce retrospectively.

Extraction, ventilation, drainage, grease management, power, waste storage, deliveries and service access can all determine whether a unit is genuinely suitable for F&B. A space may look appropriate for a restaurant on a leasing plan but be commercially unviable if the required infrastructure is missing or difficult to install.

Different concepts also require different types of space. A coffee shop, food hall, all-day restaurant and premium dining venue will each have different requirements for kitchens, bars, storage, seating, customer flow and back-of-house operations.

Understanding the intended mix early allows these requirements to influence architectural and engineering decisions. It can help determine:

• Appropriate unit sizes and configurations
• Kitchen and back-of-house allocations
• Servicing, loading and waste-management routes
• Extraction and utility requirements
• Visibility, access and customer circulation
• The potential for outdoor seating or terraces

This does not mean every operator needs to be appointed before the design develops. It means the likely formats and operational requirements should be understood well enough to avoid creating spaces that restrict the eventual mix.

Early planning can also make units more attractive to prospective operators. The closer a space is to meeting the needs of the intended concept, the lower the potential risk, complexity and capital required to make it operational.

4. Use F&B to Add Value Across the Wider Development

F&B can generate direct rental or operating income, but its commercial contribution often extends beyond the individual venues.

A well-planned hospitality offer can increase footfall and dwell time, support retail and leisure uses and make residential, office and hotel components more attractive. It can also strengthen the development’s profile, helping it compete for tenants, visitors and investment.

This wider value should be considered as part of the asset strategy.

In an office-led development, a strong lunchtime and after-work offer can improve the employee experience and help attract occupiers. Within a residential project, neighbourhood cafés and restaurants can provide amenities and support a sense of community. For a hotel, distinctive F&B can attract local diners and build visibility beyond overnight guests.

The commercial model needs to reflect the role F&B is expected to play. Rental expectations, unit sizes, capital investment, operating structures and target operators should be aligned with realistic levels of demand.

In some cases, an important anchor restaurant may provide wider destination value even if maximising rental income from that individual unit is not the only objective. In others, a directly operated, managed, leased or concession-based model may offer the most appropriate balance of control, risk and return.

Considering these choices early allows developers to evaluate F&B as part of the performance of the whole asset, not simply as a separate leasing category.

5. Address Risk Early and Build in Flexibility

Introducing F&B expertise earlier can help identify potential commercial, spatial and operational problems before they become costly to resolve.

It is easier to adjust a masterplan, unit allocation or technical strategy during the early development stages than after planning, design or construction decisions have been finalised. Early involvement can reduce the risk of:

• Allocating more F&B space than demand can support
• Creating units that do not meet operator requirements
• Concentrating concepts around the same audiences or dayparts
• Placing evening venues too close to sensitive residential uses
• Underestimating servicing, waste or infrastructure requirements
• Opening too many permanent venues before the catchment is established

Early planning also creates greater flexibility.

Major developments rarely reach their full population and visitor potential on opening day. The F&B strategy may therefore need to distinguish between the concepts required during the first phase and those that could become viable as more homes, offices, hotels or cultural uses open.

Pop-ups, markets, events and temporary venues can generate early activity while allowing demand to be tested. Flexible units and shared infrastructure can make it easier to introduce emerging operators or adapt the mix as the place evolves.

The objective is not to predict every future tenant. It is to create a commercially informed framework that can respond to changes in the market, customer behaviour and development programme.

Designing F&B Into the Destination

F&B works best when it is considered as part of development strategy rather than introduced after the major decisions have already been made.

Early involvement allows market analysis, demand modelling and commercial assumptions to inform the amount and type of F&B required. It allows the operator mix to influence the masterplan, infrastructure and public realm, while helping ensure that individual spaces are technically viable and attractive to the right businesses.

The level and timing of work will differ between a hotel, residential scheme, mixed-use district or regeneration project. However, the principle remains the same: the earlier the role of hospitality is understood, the greater its potential contribution to the place.

At TGP International, we work across F&B advisory, concept development, interior design, operations, management and marketing. This allows us to help clients define the role of hospitality, test its commercial potential and integrate it into the wider development process.

By considering F&B earlier, developers can move beyond finding space for restaurants and begin using hospitality to shape destinations that people actively choose to visit, use and return to.

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