Restaurants are replacing retail as anchor tenants

For better or worse, brand-new eateries as well as the attention they attract have turned the restaurant business into a boom town, restaurateur David Chang told CNBC in a recent interview.

Chang, who owns 23 restaurants around the globe in such cities as brand-new York City, Los Angeles, Sydney as well as Toronto, recalled a time when the idea wasn’t always This specific way. He spoke to CNBC by Pyeongchang, South Korea, the site of This specific year’s Winter Olympics.

“I remember trying to find leases as well as people were like, ‘No. We don’t want a restaurant in our building. the idea’s going to decrease the value because of problems with smells or whatever,'” Chang said of the first restaurant he tried to open back in 2004 in brand-new York City. “as well as at This specific point, everyone wants a restaurant. Restaurants at This specific point are anchor tenants in buildings. in which’s a joke.”

Today, restaurants as well as food establishments might occupy between 20 as well as 40 percent of a shopping center. A decade ago the idea was closer to 10 or 15 percent, according to commercial real estate as well as investment giant CBRE Group.

Gone are the days when the public embraced a (at This specific point largely debunked) myth in which the overwhelming majority of brand-new restaurants fail within the first year. “The problem can be, there are too many restaurants,” Chang said.

“The whole idea in which food can be hotter than ever before because people just realize in which with the younger generation, in which’s where marketing dollars, real estate dollars, everything can be coinciding with how people eat,” the Korean-American chef told CNBC

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