Jonathan Doughty is a global thought leader, consultant, speaker, moderator and C-suite executive in the foodservice and leisure sectors working around the world in retail, transit and leisure. In this landmark edition of RLI, he discusses how best to manage restaurant tenants in a commercial shopping and leisure environment.
In today’s competitive retail landscape, shopping and leisure destinations are evolving from transactional spaces to experiential hubs. At the heart of this transformation are restaurants – essential not just for footfall and dwell time, but for the overall atmosphere and appeal of a centre. As a commercial property manager or landlord, your ability to manage restaurant tenants effectively can have a profound impact on visitor satisfaction, tenant success and asset value. To unlock this potential, it’s essential to focus on five core areas: financial performance, guest care, operational standards, collaboration and placemaking.
1. Align on Financial Goals – and Stay Close to the Numbers
Strong financial performance from tenants contributes directly to rental sustainability and indirectly to the centre’s vibrancy. But unlike retailers, restaurant operators often don’t have the same level of financial sophistication or reporting systems. As a landlord, take a proactive role in understanding their business performance.
Take-out #1: Build a culture of financial transparency.
Implement turnover-based rents where possible but insist on timely and accurate sales reporting. Offer tools or templates to simplify reporting and analyse trends across tenants. This allows you to identify early warning signs, benchmark performance and spot opportunities for support or intervention.
Go beyond rent collection. Set regular check-ins with key F&B tenants to review their trading patterns, seasonal trends and any upcoming challenges. Support them in cost-efficiency strategies, such as joint procurement, marketing campaigns, or utility management.
2. Champion Exceptional Guest Experience
A visitor’s experience in a restaurant is deeply emotional and impacts how they view the entire centre. Poor service, cleanliness issues or inconsistent food quality can lead to negative reviews – not just for the tenant, but for the destination as a whole.
Take-out #2: Set clear guest care standards across all food operators.
Create and enforce minimum service standards around hygiene, customer service, queue management and speed of service. Encourage mystery dining audits and Net Promoter Score (NPS) tracking to maintain visibility on guest satisfaction.
Recognise and reward tenants who excel. This not only motivates them but also fosters a sense of community and excellence within the centre. Consider centre-wide service training days or experience workshops that involve all F&B operators and front-of-house staff.
3. Collaborate on Operational Excellence
Back-of-house issues can easily spill into front-of-house problems if not managed effectively. Shared loading bays, waste management, pest control and ventilation systems all require careful coordination.
Take-out #3: Develop joint operational protocols with tenants.
Establish clear guidelines for deliveries, grease trap management and refuse storage. Schedule routine inspections and provide feedback. Where possible, create shared back-of-house solutions to reduce costs and minimise disruption.
Hold quarterly operational meetings with restaurant tenants to bring to the surface challenges, gather input and build accountability. When tenants feel heard and supported, they’re more likely to collaborate and invest in improvements.
4. Integrate Tenants into the Marketing Vision
Restaurants benefit immensely from marketing, but they are often under-utilised as promotional assets. Featuring them in campaigns can help both the tenant and the centre’s brand positioning.
Take-out #4: Make tenants part of your storytelling.
Include F&B operators in seasonal campaigns, social media content and loyalty schemes. Encourage chefs to do live cooking demonstrations, tasting events or participate in pop-up collaborations that drive buzz.
Share footfall data and digital insights with tenants to help them understand who their customers are and how they behave. Help them tailor their offerings – menus, promotions and service styles – to match evolving visitor profiles.
The more integrated your tenants feel, the more they will contribute to the centre’s appeal.
5. Curate a Balanced, Dynamic Tenant Mix
Tenant performance is not just about individual operators; it’s about the mix. The right combination of fast casual, premium dining, cafes and grab-and-go outlets creates energy and choice for customers.
Take-out #5: Use performance data and customer feedback to guide leasing decisions.
Monitor which types of cuisine, formats and price points perform best and adapt your leasing strategy accordingly. Replace underperformers strategically and nurture high performers with opportunities to expand, refurbish, or relocate within the scheme.
Always keep one eye on market trends – vegan dining, local brands, or digital-first concepts may outperform more traditional formats. Diversifying the offer also supports inclusivity and can drive new audiences to your centre.
Restaurant tenants are more than just tenants; they are key collaborators in the success of a shopping and leisure destination. By managing them proactively – through financial support, operational rigour, guest care standards, collaborative marketing and strategic leasing – you can unlock their full potential.
So, what is the result? Higher spend per visit, greater customer loyalty, longer dwell times and a thriving centre that becomes a destination in its own right. Hurrah!
