Food hubs and hybrid spaces drive the next phase of F&B

Dining remains resilient despite tighter consumer spending.

Hybrid spaces combining food, retail, hospitality, work, and leisure are gaining traction as developers move away from single-purpose environments, according to a report by TGP International.

The report identifies food hubs and markets as key anchors within mixed-use developments, serving as social, cultural, and commercial destinations whilst helping drive footfall and establish neighbourhood identity.

In the US, the food hub and market sector has grown by nearly 9% annually since 2020, according to IBISWorld, Food Halls & Market Halls in the US – Industry Report, 2025, with similar expansion taking place across Europe, Asia, and the Middle East.

The trend is also extending to venues that change their offer depending on the time of day.

TGP International cited Coffee then Wine in Madrid, Ernest Café & Wine Bar in Seoul, and Hideaway in London as examples of spaces that operate as coffee venues during the day and shift towards wine and other evening offerings.

Retailers are also incorporating more hospitality-led spaces into their stores.

Department stores are adding food halls, cafés, and dining areas as they seek to increase customer engagement and dwell time.

John Lewis, for example, has announced plans to expand its in-store dining after reporting that one in five transactions now take place in its cafés or restaurants, according to the report.

In the Middle East, branded cafés have become increasingly common extensions of fashion and lifestyle brands.

TGP International cited Armani Caffè, Tiffany & Co Café, Valentino Café, Ralph’s Coffee, and Dolce & Gabbana Café as examples of brands incorporating food and beverage into their customer experience.

Dining remains a significant part of this shift despite pressure on consumer spending.

TGP International said eating out continues to be one of the more resilient discretionary expenses as consumers become more cautious about spending elsewhere.

The Middle East remains a particularly active dining-out market.

More than 40% of consumers in the region eat out one to three times a week, according to PwC Middle East's Voice of the Consumer 2025: Middle East Findings, as cited in the TGP International report.