The Hindu Business Line : Why food courts are crowded

The other day, I spent some time at a shopping mall where I observed interesting consumer behaviour. The food court was more crowded than the other shops. Why do people spend more money at the food court than at other shops?

Behavioural economics can throw some light on the subject. Suppose you visit a shopping mall on a Saturday evening with your family. Your intention is to spend a nice evening and not much money. Of course, your intention is never achieved — at least, not when it comes to visiting malls with your family!

You climb more than a dozen shops but refuse to cow down and buy stuff ranging from exotic toys, designer clothes, organic-foods to brain-stimulating books. You feel wretched for not buying enough stuff at the mall. Your not buying enough was an economic decision. Goods are after all more expensive at the mall.

Reason to dine

Then, there is the food court. We feel hungry when we are at the mall. “Grabbing a bite” is part of mall experience. Again, prices are expensive compared with restaurants outside. But the absolute prices are lower than, say, buying designer clothes or toys. And that is a compelling reason to spend.

For some, dining at the mall is a way to pacify a family that was moderated in its consumerism. Remember, you mentally debited some money into recreation account when you decided to visit the mall. Not having spent much on designer-wear and other (unwanted?) stuff compels you to spend at least some money at the mall. So you dine, which requires lower absolute outlay.

good day of consumerism

These factors, perhaps, explain for the large crowd at the food court. The phenomenon is the same in India as in North America.

What of those who splurge on exotic goods at the mall and yet go to the food court? These people have already spent lot of money. Eating at the food court simply rounds off a good day of consumerism! Either way, the food court is busy. And that makes it a good business proposition!

(The author is an investment strategist.)

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