In 2025, the retail property market in India is changing a lot. Food and drink places are now the biggest reason why people are renting space in popular shopping areas and malls. People want different experiences, and cities are getting busy again. Restaurants, fast food spots, coffee shops, and cool dining places are doing great and changing our cities. This blog will talk about retail space renting, looking at how food and drink businesses are driving the change, what this means for landlords and investors, and where the best new chances are.
The Rise of F&B in Retail Leasing: 2025 Insights
F&B Leasing Hits a Record 22% Share: In 2025, the F&B sector accounted for 22% of total retail leasing activity across India’s top seven cities, up from 16% in 2023. This uptick cements F&B as the primary non-fashion demand driver, outpacing even the fast-evolving apparel sector.
Leasing Volume & Growth: About 4 million sq ft of F&B leasing has been recorded in 10 quarters (since 2023), with projections for an additional 6 million sq ft of new F&B space by 2028.
Key F&B Cities: Bengaluru leads the F&B leasing boom (over one-third of total), with Delhi-NCR and Mumbai accounting for nearly two-thirds of demand. Bengaluru’s Indiranagar, Mumbai’s mall clusters, and Delhi’s thriving café/bar submarkets are especially strong.
Domestic vs International Brands: Domestic operators contribute 86% of F&B leasing, but global chains—including 20+ new US brands since 2023—are increasing their footprint in top metros.
Why F&B is Reshaping Retail Real Estate
1. Experiential Demand Post-Pandemic
Consumers seek experiences, social connections, and culinary variety, making eating out a cultural necessity beyond convenience. F&B concepts—multi-cuisine eateries, craft breweries, dessert cafés, and co-working cafes—fill a void that digital retail cannot.
2. High Streets vs Malls: Both in Vogue
High Streets: Account for 54% of F&B leasing. Their flexibility, accessibility, and community engagement make them a hit for both independent brands and scalable chains.
Malls: 38% of F&B leasing happens in malls where developers are now dedicating up to 25% of space to dining and entertainment. New Grade A mall supply (18.6 million sq ft added in 5 years) boosts mall-centric demand, especially in Mumbai and Delhi-NCR.
3. Office & Business Parks Join the Party
Amenity retail is making strong inroads in business parks, providing dining spaces that serve office goers, fueling all-day demand, and cross-segment synergies.
| City | F&B Leasing Share (%) | Street or Mall Preference | Recent Hotspots | Noteworthy Trends |
|---|
| Bengaluru | 33+ | High streets | Indiranagar, Koramangala | Rise of craft breweries |
| Mumbai | ~20 | Malls (esp. for bars/cafes) | Lower Parel, BKC, Juhu | Mall space premium, global brands |
| Delhi-NCR | ~20 | Malls > Streets | Connaught Place, Gurugram | F&B preference for malls |
| Hyderabad | 8 | Mixed | Jubilee Hills | High streets in western zones |
| Chennai | 6 | High streets rising | T Nagar, Anna Nagar | Cross-over with entertainment |
| Pune | 7 | Malls, then streets | Koregaon Park | Mall-based chains growing |
| Kolkata | 6 | High streets & heritage | Park Street | Heritage café culture |
Retail Leasing Patterns: The F&B Effect
1. Leasing Absorption
Retail real estate absorption crossed 22 million sq ft since 2023, with F&B and fashion dominating over 54% of the total.
2. Regional Nuances
Delhi-NCR: Strong focus on mall-based F&B, with more than a quarter of drinking establishments sited in malls, reflecting consumer preference for experiential, safe, and climate-controlled venues.
Bengaluru & Hyderabad: High streets remain the F&B heartland, especially for craft, quick service, and casual dining, adapting global urban trends to local taste.
3. Globalization & Investment
Over 20 new foreign F&B players (mostly from the US and Europe) have entered since 2023, boosting global cuisine offerings and setting new standards for interiors and customer experience.
4. Mall Developers Respond
Grade A mall developers are allocating 20–25% of new space for F&B. The upcoming mall pipeline (with 6 million sq ft of F&B supply by 2028) suggests robust absorption by both Indian and international operators
Conclusion
The food and drink business is really changing how retail spaces look in India in 2025. People want cool experiences, so that’s changing up how stores and malls are rented. Think about it: Bangalore's got its own cool drinks scene, Delhi likes eating out in malls, and Mumbai is getting all sorts of new international food spots. Everyone wants good, different, and easy-to-get food. This is making people who own properties and those who put money into them rethink things.
Because builders are giving more space to food, drinks, and fun stuff, cities are becoming more exciting and worldly.If you want to put money somewhere, start a business, or just see what's up in Indian cities, pay attention to the food and drink scene. That is where trends, chances, and culture all come together.