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Black Country Core Strategy Issue and Option Report

Representation ID: 247

Received: 07/09/2017

Respondent: intu Properties Plc

Agent: Lichfields

Representation Summary:

Leisure expenditure, including eating and drinking away from the home, is projected to grow and over recent years there has been significant investment in this sector. The updated evidence base should therefore also provide an assessment of leisure and food and beverage expenditure patterns and translate these patterns into new floorspace requirements.

Full text:

As outlined in Question 62, leisure expenditure, including eating and drinking away from the home, is projected to grow and over recent years there has been significant investment in this sector, particularly in the development of cinemas with food and beverage outlets, with many such developments proposed in town centres. This provides for a more experiential 'day out' visit which in turn increases dwell time and supports a strong evening economy. Experian forecast that leisure expenditure will increase on average by 1.4% per annum, a total increase of 23% between 2016 and 2031 over and above inflation.

Non-retail service and leisure uses increasingly perform an important role in the overall offer of a centre, and encourage customers to visit centres. Food and beverage is a fast moving and creative sector, with a steady flow of new concepts emerging. Within this sector there has been a significant increase in the number of national multiple chains. These national chains have sought to increase their geographical coverage. These types of operators (Class A3, A4 and A5) i.e. restaurants, bars and pubs have supported other major leisure uses, in particular cinema developments. Within centres, the demand has increased, including a significant expansion in the number of coffee shops, such as Starbucks, Costa Coffee and Coffee Republic.

National branded pub/restaurant chains have invested heavily and not exclusively in larger centres. Themed restaurants have also expanded rapidly. The key categories for food and beverage offers are:

1. impulse: characterised by their produce range that is typically highly visual and hand-held so that it can be eaten "on the go";

2. speed eating fast food: food that can be purchased and consumed quickly, therefore price is low and ambience is less important. This sector is dominated by traditional high volume fast food offers such as burgers and fried chicken;

3. refuel and relax: a drink and snacks and a short break in a pleasant environment rather than focusing on eating a main meal; and

4. casual dining/leisure dining: incorporating a number of food styles, types and ethnic origins. The ambience and environment of casual dining is as important as the food, drink and service provided. The style is informal but is normally table service.

Given the increasing demand for, and importance of, leisure and food and beverage uses, the updated evidence base should also provide an assessment of leisure and food and beverage expenditure patterns and translate these patterns into new floorspace requirements.

Over the past couple of years, intu has invested £78 million in major new development and extension projects across its UK centres, including (inter alia) investment in restaurant and leisure developments at intu Metrocentre and intu Eldon Square, leisure extension proposals at intu Potteries, refurbishment of intu Victoria Centre and development of Charter Place as part of intu Watford.

Over the plan period, there will be a need for new retail, food and beverage and leisure investment at iMH and the reconfiguration and extension of existing space. The Javelin Group's Venuescore sets out the food/service orientation index for iMH and indicates the strength of the centre's food and beverage offer is currently relatively poor at 89 (national average = 100). There is potential to increase iMH's food/service index to 100 around the national average. This will help diversify the centre, protecting it against changes in the retail market, increase dwell time, complement the retail offer and increase employment opportunities.

This requirement should be directly supported through the BCCS review and policy should facilitate this type of investment.