Dive Brief:

• Eataly will open its seventh U.S. location in Dallas in 2020 inside NorthPark Center, one of the top malls in the country, the Dallas Morning News reported. The other U.S. stores are in New York, Chicago, Boston, Los Angeles and Las Vegas. The Dallas store will add to Eataly's portfolio of 39 stores worldwide. 
• The new Eataly will feature three levels and will be positioned between Neiman Marcus and Nordstrom, with the top level being an indoor-outdoor restaurant. The eatery and specialty grocer will feature tasting events, classes and a wide selection of Italian ingredients.
• The company chose Dallas because "it's an important, diverse, and cultural city — perfect for Eataly," Nicola Farinetti, CEO of Eataly North America told the Dallas Morning News.

Dive Insight:

Eataly has been able to turn a shopping or dining trip into a memorable experience — from food demonstrations to performance art. Each Eataly is customized to its location, which adds to the draw. In addition to a dazzling array of Italian products, the newest restaurant in Boston focuses on consciously-sourced seafood; the Vegas outpost is open 24 hours a day.

Like the other U.S. cities Eataly resides in, Dallas is a hub for young, diverse consumers who are looking to spice up their palate. In fact, Dallas-Fort Worth has grown to be a magnet for millennials fleeing New York City in search for more space, job opportunities, and lower costs without compromising on the unique experiences and cuisines they crave. Millennials make up about 21% of the Dallas population, and that number is expected to continue to grow.

Similar to Dallas, Eataly's Chicago and Los Angeles locations are also inside popular shopping centers. As malls throughout the country lose major retailers, many grocers are drawn to that vacant mall space. Not only do malls provide the stores with prime locations in both urban areas and suburbs, but grocers can capitalize on established foot traffic. NorthPark Center, which is ranked as the 19th biggest mall in America, has 225 stores and 2 million square feet of leasable space. Eataly will fill the void left by Pirch, an appliance retailer that closed in late 2017.

Eataly's grocery and restaurant sides of its business are designed to be complementary. Once a customer enjoys a dish at a restaurant, they can purchase the ingredients on the other side of the aisle. Staff is also well-versed in ingredients and recipes to encourage guests to take their dining experience home with them. This bodes well with today's busy shoppers who like preparing and eating meals at home but need a helping hand or prefer prepared foods. 

The restaurant-in-store concept isn't limited to Eataly. The grocerant trend has certainly taken off in recent years with Whole Foods, Kroger and Hy-Vee among the grocers that have added restaurants in addition to upping their inventories of ready-to-eat options. Grocerants generated 2.4 billion visits and $10 billion in sales in 2016.