From Fast Food to Fine Dining: How F&B is Powering Retail Leasing Boom in Delhi-NCR

By Prakash Mehta, CMD, Ocus Group

Retail real estate is undergoing a dynamic transformation driven by shifting consumer behaviour and preferences—particularly among Millennials, Gen Z and even Gen Alpha.

Traditionally, categories such as fashion and electronics dominated retail leasing. However, is the food and beverage (F&B) segment that has emerged as the biggest crowd-puller. Eating out has evolved from being an occasional indulgence to becoming a central part of urban lifestyles, and these generations are redefining retail by prioritising convenience, digital integration and meaningful brand experiences.

F&B Emerges as Fastest-Growing Category in Retail Real Estate

The retail landscape is in the midst of a remarkable shift with consumer preferences evolving rapidly and brands recalibrating their expansion strategies to keep pace. Fresh data from ANAROCK reveals that apparel and F&B together dominated leasing activity, accounting for 54 per cent of the total 2 mn sq ft of retail space absorbed across the top seven cities in the first half of 2025—a sharp rise from their 37 per cent share in 2023. Notably, the F&B segment continues its steady climb, expanding from 8 per cent in FY19 to 12 per cent in FY25, and is projected to capture 16 per cent of retail leasing by FY30, underscoring its growing role as a cornerstone of the retail growth story.

High-Performing Micro-Markets in NCR

Gurugram remains the frontrunner in NCR’s retail leasing activity, accounting for an impressive 52 per cent share of total space absorption in Q1 2025.

The city’s vibrant mix of high streets, malls and mixed-use hubs continues to attract leading F&B and fashion brands, making it the epicentre of premium retail expansion.

While established destinations like Cyber Hub, Golf Course Road and MG Road retain their dominance, emerging corridors such as Sohna Road are adding fresh momentum.

With its strong residential catchment, seamless connectivity to key business districts and a growing base of corporate and educational institutions, Sohna Road is fuelling demand for high-street formats, QSRs and lifestyle retail—strengthening Gurugram’s position as the most dynamic retail hotspot in NCR.

Why Developers Are Betting Big on F&B

For developers, F&B brands have emerged as the cornerstone of modern retail leasing strategies. Unlike fashion outlets that face intense competition from e-commerce, dining remains an experience that cannot be digitised, making it a highly resilient category.

F&B outlets not only command stronger revenue-sharing models and higher rentals but also guarantee consistent footfalls throughout the week—balancing weekday traffic with weekend surges. This stability helps developers maintain active, lively retail spaces.

More importantly, F&B transforms malls and high streets into destination hubs where people come not just to shop but to socialise, dine, and spend leisure time. By driving longer dwell times, encouraging repeat visits and complementing other retail categories, F&B has become a strategic anchor that sustains retail ecosystems and maximises asset value.

The rise of F&B as the new anchor of retail real estate signals more than just a shift in leasing dynamics; it reflects a fundamental change in how urban consumers engage with spaces. Delhi-NCR, with its thriving malls, vibrant high streets and rapidly evolving micro-markets, has become the testing ground for this transformation.

From fast food to fine dining, F&B is no longer a supplementary offering but the very engine that powers retail destinations, enhances customer experience and ensures long-term viability for developers. As eating out becomes a lifestyle habit rather than an indulgence, F&B’s role in shaping the future of retail real estate will only deepen, making it the sector to watch in India’s next phase of consumption-driven growth.

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty&More’s views.