Space as a Revenue Engine
Experience is the new currency in restaurants. In a panel discussion led by EFSS Advisory Board Member Mario C. Bauer, two leading hospitality designers – Queenie Lo of Future Brand and Paul Wainwright of Harrison – explored the transformation sweeping the industry.
Their conversation highlighted a shift away from operations-focused models toward strategies centered on experience, brand identity, and thoughtful design investment. The panel showed that spatial branding not only enhances guest experience but also delivers measurable commercial results, such as increased footfall and higher average basket size. Yet, they agreed that standard solutions often fall short in diverse international markets, requiring nuanced adaptation. Here are the session’s Top 5 Key Learnings.
Top 5 Key Learnings
1. Spatial Branding Drives Engagement
Physical spaces remain critical for customer engagement despite consumers spending more time online. True brand loyalty and memorable brand experiences occur in well-designed environments rather than on screens. Companies such as LVMH and Ralph Lauren are expanding into gastronomy, leveraging restaurant spaces to build community and attract a broader customer base.
2. Brand-Driven Restaurant Design
Designing restaurants around core brand values, rather than superfluous experiences, is increasingly effective. Case studies show brands like French retailer L’Occitane partnering with food concepts (e.g., macaron bars) or McDonald’s adapting layouts for local habits (e.g., round tables in China), resulting in footfall and sales increases.
3. Localization Balances Equity and Adaptation
Success in new markets requires a nuanced balance between standardized brand identity and adaptation to local preferences. Over-standardization leads to poor local traction, as seen with Starbucks’ initially failed Australian expansion, while over-adaptation risks diluting brand equity. Brands that strike this balance achieve faster customer trust and improved profitability.
4. Data-Driven Design Links Directly to P&L
Design must be KPI-driven from the outset, beginning with clear success metrics (e.g., footfall, dwell time, ticket size). Spatial decisions—such as small formats, seating types, and order flow—are increasingly reverse-engineered from financial requirements, and tested for ROI. Brands have observed, for example, that right-size flagship stores can increase ticket prices by up to 11% and accelerate time to EBITDA.
5. Risk-Taking and Cross-Industry Learning
Inspirations from retail and other sectors—including visual merchandising techniques and the focus on building superfans—are generating new revenue streams for hospitality brands. Risk-taking in design, such as removing traditional seating to cater to mobile-centric youth, can pay off if matched to sound data and market insight. Cross-disciplinary learning fosters authentic, emotionally resonant guest experiences.
