Building the Right F&B Mix for Successful Places

Food and beverage should no longer be treated as something used to fill ground-floor units once the rest of a development has been planned. Across new mixed-use districts, major regeneration projects and established destinations being repositioned, F&B has become one of the most effective tools for creating identity, attracting people and shaping how a place is experienced.

The challenge for developers is therefore not simply deciding how much F&B to include. It is determining what the market can realistically support, which concepts belong in the place and how the mix can contribute to its wider commercial and placemaking objectives.

Getting this right requires more than securing a collection of recognised operators. It means developing an evidence-based F&B ecosystem in which each concept responds to identifiable demand, has a defined role and can operate within a sustainable commercial model.

Start With the Place and Its Market

Before defining the F&B mix, developers need a clear understanding of what the place is intended to represent and the market in which it will operate.

Is it a new business district designed around convenience and connectivity? A residential neighbourhood with a strong community focus? A premium tourism destination? Or an established area being regenerated while retaining its cultural and local character?

This vision needs to be considered alongside the wider dynamics of the market. Population growth, tourism, office occupancy, residential development, transport connections, spending patterns and the existing hospitality landscape can all influence the scale and type of opportunity.

The analysis should also consider what is happening beyond the immediate site. A development may be entering a market with significant unmet demand, or it may be competing with several established and planned destinations targeting similar audiences. Future supply is therefore as important as current competition.

In regeneration projects, understanding the existing community and hospitality ecosystem is particularly important. Local cafés, restaurants, markets and independent businesses may already be central to the identity of the area and should be considered as assets rather than simply existing supply to be replaced.

Connect F&B Strategy to the Masterplan

F&B planning should develop alongside the masterplan, not after the total space and unit locations have already been fixed.

The masterplan establishes the uses that will generate demand, including homes, offices, hotels, retail, leisure, culture and entertainment. The F&B strategy should assess how these populations might use the development, while also considering demand from the surrounding catchment and destination visitors.

This creates a two-way process. The masterplan informs the potential F&B demand, while the F&B strategy can influence the amount, location, clustering and configuration of space within the masterplan.

For example, a proposed restaurant cluster may require stronger connections to parking and public transport, a public space capable of supporting outdoor dining and events, or sufficient separation from residential areas for evening activity. A large number of small units may suit quick-service and independent operators, while destination restaurants require different footprints, servicing and visibility.

Considering these requirements early allows hospitality to shape the place rather than being fitted into spaces that may not support the intended concepts.

Model the Potential Demand

Before allocating significant space to F&B, developers should understand the likely scale and pattern of demand.

Depending on the project, this may involve assessing:

• The number and profile of residents, workers, hotel guests and visitors
• Expected occupancy and development phasing
• Footfall across weekdays, weekends and different seasons
• Customer spending and frequency of visits
• Demand across breakfast, lunch, afternoon, evening and late night
• Existing and planned competing F&B supply
• The proportion of spending the development could realistically capture

The objective is not to predict performance with absolute certainty. It is to test whether the amount and type of proposed F&B is proportionate to the addressable market.

Headline footfall figures alone can be misleading. A large number of people passing through a development does not automatically translate into restaurant demand. The model needs to consider who those people are, why they are visiting, how long they will stay and how much of their food and beverage expenditure the development could reasonably attract.

Demand also changes over time. A new district may have relatively low resident and worker populations during its early phases but a much larger catchment once the development is established. The F&B strategy should therefore consider both opening demand and the longer-term opportunity.

Test the Financial Implications

Demand modelling should be translated into an initial view of commercial performance.

At a development level, this can help test whether the proposed amount of F&B space is likely to generate sufficient sales and sustainable occupancy costs for operators. The analysis may consider potential sales densities, average spend, customer volumes, trading periods, ramp-up time and the relationship between expected revenue and rent.

For individual formats, the assumptions may include covers, table turns, occupancy, daypart performance and the balance between food and beverage sales. The appropriate metrics will differ between a café, food hall, destination restaurant and hotel outlet.

Financial modelling can also identify the risks of overprovision. If too many venues rely on the same audience or daypart, projected demand may be spread too thinly for operators to trade sustainably. A development could appear lively on a leasing plan while creating a difficult commercial environment after opening.

The purpose is not to determine every future operator’s business plan. It is to ensure that the overall scale, mix and phasing are supported by realistic market and financial assumptions.

Define the Role of F&B

Once the market opportunity is understood, the development should define what F&B is expected to achieve.

In a new district, hospitality may help establish an early reason to visit before the wider masterplan is complete. In an established destination, it might address gaps, support an evening economy or attract new audiences. Within a regeneration project, it can reactivate vacant buildings, animate public spaces and reconnect parts of a neighbourhood.

F&B can also support wider commercial objectives by increasing footfall and dwell time, strengthening residential or office appeal and improving the performance of surrounding retail, leisure and cultural uses.

These objectives should guide decisions about space allocation and operator selection. There is no universal percentage of a development that should be dedicated to F&B. Too little can limit activation and destination appeal, while too much can fragment demand and place pressure on individual operators.

Establish the Place Brand

The F&B mix should reflect what the place stands for.

A useful starting point is to define several experience principles for the destination. These might include being locally rooted, socially inclusive, wellness-focused, family-friendly or active throughout the day. The principles should be specific enough to guide decision-making and assess whether a potential concept genuinely belongs.

This does not mean every restaurant or café should look the same. A successful place needs creative variety. However, each concept should reinforce part of the wider story rather than appearing to have been selected solely because a unit was available.

The place brand should be credible in relation to the market. An ambition to become a premium culinary destination, for example, needs to be supported by the catchment, competitive environment, operator interest and customer spending.

Give Every Concept a Role

A successful mix is not defined by the number of operators, but by the purpose each one serves.

Depending on the development, these roles may include:

• Everyday operators serving residents, workers and frequent visitors
• Convenience-led concepts supporting breakfast, lunch and takeaway
• Social venues encouraging longer stays and group occasions
• Destination restaurants attracting customers from a wider catchment
• Experience-led concepts combining dining with culture or entertainment
• Flexible spaces supporting events, pop-ups and emerging brands

Assigning a role to each unit helps prevent duplication. Two restaurants serving different cuisines may still compete directly if both are premium, dinner-led and targeting the same audience.

The mix should therefore be considered across cuisine, price, format, service style, occasion and daypart. It should give customers genuine choice while allowing operators to benefit from being located within a complementary ecosystem.

Balance Anchors, Independents and Local Operators

Recognised operators can provide credibility and immediate awareness, particularly within a new development. A well-known restaurant, chef-led concept or successful regional brand can act as an anchor and give customers an immediate reason to visit.

However, relying too heavily on familiar brands can result in a destination that feels interchangeable with its competitors.

Independent, emerging and local operators can bring character, community relevance and a stronger sense of discovery. In regeneration areas, helping existing businesses remain, evolve or expand can also preserve continuity and local identity.

Developers should assess what each operator contributes beyond brand recognition. Does it address a gap in the mix? Does it add a new occasion or price point? Can it operate successfully within the available space and projected demand? Does it reinforce the positioning of the destination?

Plan Price Points, Dayparts and Locations Together

A commercially resilient F&B ecosystem needs an appropriate range of price points and trading occasions.

If every venue operates at a premium price point, the development may attract occasional visitors but struggle to become part of everyday life. If the mix is entirely convenience-led, it may generate frequent transactions without establishing a strong destination draw.

Similarly, a place dominated by evening restaurants may remain inactive for much of the day, while an office-led district with a strong lunchtime offer can become empty after workers leave.

Not every concept needs to trade across every daypart. The priority is that the combined mix supports the intended rhythm of the place across mornings, evenings, weekdays and weekends.

These formats must also be placed appropriately. High-frequency operators usually benefit from visibility and passing footfall. Destination concepts can draw visitors deeper into a site, while evening-led venues need to be considered in relation to residents, transport and noise.

Clustering complementary venues around public spaces can generate energy and choice, but concentrating too much F&B in one area may leave other parts of the development inactive. The solution should respond to both commercial demand and the movement strategy of the masterplan.

Phase the Mix as Demand Develops

Major developments rarely reach their full population or visitor potential on opening day. The F&B strategy should therefore distinguish between what the market can support during the first phase and what may become viable later.

Opening too many permanent venues before the catchment is established can place operators under unnecessary pressure. Conversely, too little early activity can make it difficult for a new area to build awareness and momentum.

A phased approach might combine a smaller number of permanent anchors with pop-ups, markets, temporary cafés, events and meanwhile-use concepts. These can activate the destination, test customer behaviour and provide evidence for future leasing decisions.

As residential, commercial, cultural and hospitality uses are completed, the F&B mix can expand and evolve in line with actual demand rather than relying entirely on projections made years earlier.

Create a Framework That Can Evolve

A development’s F&B strategy should not end when the first venues open.

Performance should be assessed at both operator and destination level. Alongside individual sales, developers may monitor footfall, dwell time, daypart activity, repeat visitation, occupancy costs and the impact of F&B on surrounding uses.

This allows the mix to be actively managed and adjusted as the area develops. Flexible units, temporary activations and different leasing or operating models can help introduce new concepts and respond to changing customer behaviour.

The objective is not to create a fixed tenant list. It is to establish a commercially informed framework that can evolve with the place.

F&B as Part of the Wider Asset Strategy

The right F&B mix can attract visitors, support everyday life, activate public space and give a new development an early identity. Within an existing area, it can support regeneration while protecting the character and businesses that make the place distinctive.

Achieving this requires F&B strategy, demand analysis, financial modelling and masterplanning to work together. Decisions about the volume of space, operator mix, location and phasing should be based on both the desired experience and the realistic capacity of the market.

At TGP International, we work across F&B strategy, concept development, interior design, operations, management and marketing. This allows us to help developers and place owners evaluate demand, define the role of hospitality and create an F&B ecosystem that supports the long-term commercial and social performance of the place.

The strongest developments do not simply provide a large amount of F&B. They provide the right mix, matched to the market, introduced at the right time and designed to evolve as the place grows.

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