Malls used to be the destination for the buzziest stores. Now they’re home to the hottest restaurants.

The slow death of department stores and rise of online shopping have hurt U.S. shopping malls, particularly over the last decade. The once-essential shopping centers have seen their numbers drop from a peak of 2,500 in the 1980s to roughly 700 these days, according to Coresight Research.

But now many in the retail industry say that rumors of the mall’s demise have been greatly exaggerated. Many Gen Z consumers prefer to shop in person and love the mall experience. Creative solutions from developers have turned empty department stores into housing, bringing consumers even closer to stores.

And landlords are devoting more square footage to restaurants and bars, which have become a bigger draw to visit malls.

“It’s been a big shift,” said David Henkes, senior principal at Technomic, a market research firm focused on the restaurant industry. “It used to be that the shopping occasion drove people to the mall and then maybe you grabbed a bite to eat. In a lot of ways, that’s been flipped on its head. Now, the dining options drive people there, and then you’re hoping that they’re going to do a little shopping while they’re there.”

Yelp found that 17 of the 25 most popular mall brands, based on consumer interest, were restaurants, according to a report published in October.

Going back 10 or 20 years ago, restaurants accounted for only about 5% to 10% of general leasing area in malls operated by Brookfield Properties, according to Chris Brandon, the company’s senior vice president of leasing for eating and drinking retail. That would typically include a food court and several full-service restaurants. That’s changed in recent years.

“It’s increased an incredible amount over the last five to 10 years,” Brandon said. “In some of our shopping centers, we’re seeing 20% to 30% of the total [general leasing area] being dedicated to food, and that’s 100% by design.”

Brookfield’s portfolio of 129 malls include Tysons Galleria in McLean, Virginia; Christiana Mall in Newark, Delaware; and First Colony Mall in Sugar Land, Texas. Its mall restaurant tenants include more than 540 full-service eateries and around 2,000 fast-casual establishments.

More than half a century ago, the Paramus Park shopping mall in New Jersey opened a food court on its second floor, becoming the first example of a successful mall food court in the U.S. A decade later, food courts had become of a staple of the American mall, helping the expansion of chains like Sbarro, Mrs. Fields and Auntie Anne’s.

Full-service chains like the Cheesecake Factory, TGI Fridays and California Pizza Kitchen also became mall mainstays.

But those familiar names are no longer the only options for shoppers. These days, malls offer a much wider selection of eateries and refreshments, from regional restaurants to local chefs and emerging bubble tea chains.

“What malls are looking for tend to be more high end, what we might call a ‘contemporary casual’ restaurant,” Henkes said. “It’s not fine dining, per se, but it’s sort of that notch up from just traditional casual.”

Those contemporary casual eateries include upscale options like Korean barbeque, steakhouses or sushi. While price points vary, a meal at these new mall eateries will likely cost upward of $30 per person, if not more.

For James Cook, head of retail research for real estate firm JLL, the expansion in dining options offers an experience that’s familiar — but still elevated.

“The distinction that I make is that I’m not necessarily dressing up nice to go to a mall,” he said. “This is a restaurant where I could pay more money, but not necessarily feel like I have to wear a suit jacket or anything like that.”

The pandemic also made malls a more attractive option to restaurateurs.

During lockdowns, operators saw their traffic disappear. Even when consumers started dining out and commuting again, restaurants in central business districts still struggled to attract diners, given the new hybrid workforce and other changes to consumer behavior. But malls bounced back.

“Even today, foot traffic to suburban malls is back above pre-pandemic levels, where in the cities and the city centers, foot traffic has not returned,” JLL’s Cook said.

That foot traffic also appeals to emerging chains that are looking to expand quickly. Restaurant companies like Sweetgreen and Mendocino Farms have opened new locations in malls as they seek to grow their sales and brand awareness.

“The one thing that our properties can offer is scale, and scale really quickly. If they’re used to doing X in their food truck, now they’re doing X times two or three,” Brandon said.

For example, Din Tai Fung, a Taiwanese restaurant chain, has honed in on malls for its U.S. expansion, according to Alison Lin, Yelp’s head of restaurants. Upcoming locations will open in Scottsdale Fashion Square in Arizona and Brea Mall in Southern California, according to the chain’s website. Din Tai Fung ranked second in Yelp’s report on most popular mall brands by consumer interest. (Din Tai Fung declined to comment).

As malls devote more space to food and drinks, food courts have been supplemented by a newer, more upscale alternative: food halls.

Like food courts, food halls offer an array of dining options, usually from stalls, with general seating available once diners have purchased and picked up their food and drinks.

But unlike food courts, the halls typically offer more expensive options, usually touting ties to local chefs and promising more interesting cuisine than that found at a food court. While a food court sells fare from national chains, food halls typically stick to local vendors that have few locations.

“A food court is to give you a burger, fries or a slice of pizza to keep you shopping longer at the mall,” Cook said. “A food hall is part of the experience.”

Oftentimes, food halls feature multiple vendors. But Eataly is one exception.

The Italian chain sells itself as a trip to Italy, without the plane ride. Its large locations feature full-service restaurants; artisanal groceries; quick-service counters that sell gelato, pizza and espresso; along with cooking classes. Eight of Eataly’s 13 U.S. locations are in malls, with more on the way next year.

Eataly’s North American CEO Tommaso Bruso joined the company last year after two decades in the fashion industry, leading mall brands like Benetton and Diesel.

“People go to the mall for shopping, but also they go for a cultural experience,” Bruso said, adding that Eataly has found success with consumers both in and outside of malls.

But food halls haven’t won over everyone. Brandon said that food courts have performed better for Brookfield’s malls. He pointed to Chick-fil-A and Panda Express as two tenants that typically see strong sales in food courts. In 2023, the average annual revenue for a mall location of a Chick-fil-A was $4.5 million; the chain’s best-performing mall restaurant raked in nearly $19 million in annual sales, according to franchise disclosure documents.

Even with more competition than ever for shoppers, The Cheesecake Factory has managed to stay on top. And it’s showing how restaurants can help a broader mall.

The chain, known for its comprehensive menu and towering columns, was ranked No. 1 in Yelp’s mall brand report.

It’s been a rocky year for the company. Like many restaurants, the chain has struggled to attract diners, many of whom have pulled back their restaurant spending. In its latest quarter, the company’s same-store sales grew just 1.6%. Activist investors have also been putting pressure on the company to spin off its smaller brands, like North Italia. (The Cheesecake Factory declined to comment.)

Still, the company is outperforming the broader casual-dining category, based on metrics provided by industry tracker Black Box Intelligence.

Shares of the Cheesecake Factory have risen 43% this year, outstripping the S&P 500′s gains of 27% over the same period.

While fellow mall staples like California Pizza Kitchen and TGI Fridays have filed for Chapter 11 bankruptcy in recent years, the Cheesecake Factory has escaped the same fate.

And it’s maybe even helped its landlords’ finances. Enclosed malls with a Cheesecake Factory location are more likely to be current on their loan payments, according to a Moody’s Analytics report from 2023. Author Matt Reidy, director of commercial real estate economics for Moody’s, said it was more likely the result the company’s strong site selection, rather than cheesecakes saving a mall.

Still, Reidy said having one of the restaurant’s locations helps. And Brookfield’s Brandon agrees.

“My god, are they productive. It’s pretty incredible what they’re able to do, and they’re a valued partner of ours. We have dozens of leases with them, and we truly value them as a tenant,” he said.

The fate of President Joe Biden’s landmark climate legislation, the Inflation Reduction Act, is in the hands of the incoming Republican-controlled White House, Senate and House of Representatives.

At the White House level, President-elect Donald Trump has already nominated three people to posts in his administration who are likely to be key to the future of the IRA, if they are confirmed by the Senate: hedge fund executive Scott Bessent as Treasury Secretary, oilfield services company Liberty Energy CEO Chris Wright to lead the Department of Energy, and at the Interior Department, North Dakota Gov. Doug Burgum.

Any full repeal of the IRA would have to be passed by both chambers of Congress, where Republican lawmakers so far have been reluctant to completely discredit the law’s benefits. House Speaker Mike Johnson, R-La., told CNBC in September that he would use “a scalpel and not a sledgehammer” on the IRA.

There’s a good reason for this approach: As of late October, roughly three quarters of the clean energy investments that have been made with IRA funds benefitted congressional districts that backed Trump in the 2020 presidential election, according to a Washington Post analysis of data from the Massachusetts Institute of Technology and the clean energy think tank Rhodium Group.

But what future Trump Cabinet members would do is also “pretty profoundly important” to the future of the massive legislation, said Tanuj Deora, a former director for clean energy at the Biden administration’s Office of the Federal Chief Sustainability Officer. The agencies hold considerable power over the interpretation and implementation of the IRA’s programs and incentives, like tax credits and business loans. 

A priority for Republicans going into 2025 is extending the expiring provisions of the Tax Cuts and Jobs Act of 2017. Trump is looking to extend the tax cuts within his first 100 days in office next year.

This extension would cost $4.6 trillion over the 10-year budget window, according to estimates from the Congressional Budget Office.

“In addition, Trump promised another seven to eight trillion in tax breaks during the last few weeks of the [presidential] campaign,” said Keith Martin, co-head of projects at the law and lobbying firm Norton Rose Fulbright.

The money for all this has to come from somewhere, however, and experts say provisions of the IRA are the most likely candidates for potential cost-savings. In an interview with the Financial Times last October, Bessent called the IRA “the Doomsday machine for the deficit,” suggesting that Trump could dismantle it to cut spending.

The IRA contains a range of targeted tax incentives designed to drive clean technology and energy production across the country.

Among them, the renewable energy tax credits, especially those for carbon capture technologies, domestic manufacturing and the green economy job transition are well-liked by Republicans, Martin said, and likely to be safe from any potential repeal efforts. 

But the current phase-out dates for the IRA tax credits are likely to be accelerated, experts predict, and the Trump transition team is already in talks to completely dismantle a $7,500 consumer tax credit for electric vehicles.

Most of the final rules governing implementation of the IRA tax credits have either been finalized or are expected to be by the end of the year.

But there is still considerable fear that the remaining money could be rescinded, frozen or “awarded in ways that are aligned with a shift in priorities” in a new administration, said Julie McNamara, deputy policy director of the Union of Concerned Scientists.

“Theoretically, a future Treasury could reverse course on interpretation and implementation, but that would take a long time and would need to be justifiable and defensible if challenged in the courts,” she added.

The more immediate concern, experts say, is the future of the Department of Energy’s Loan Programs Office (LPO), which provides financing for green projects. While Wright has yet to voice an opinion on the LPO, several Republicans have called for scaling it back or doing away with it altogether.

As of November, private companies were seeking more than $300 billion in funding applications from the LPO. Beneficiaries of the loan program have included Tesla, whose CEO Elon Musk is co-heading Trump’s outside advisory council, the so-called Department of Government Efficiency.

The Inflation Reduction Act expanded the LPO’s lending authority and eligibility requirements for projects.

“I think that a lot of the private sector is very concerned about the loan program,” said Claire Broido-Johnson, co-founder and president of Sunrock Distributed Generation, a financier and developer of commercial-scale solar projects. “Everybody’s trying to slam as many projects as they possibly can into this process before the administration changes.”

With the boom in AI data centers, domestic manufacturing and electrification, the U.S. is facing “a significant challenge in meeting a growing demand for energy,” said Frank Macchiarola, chief policy officer of the American Clean Power Association, which represents renewable energy interests in Washington.

This demand can only be met by an “all-of-the-above” energy policy, Martin says, especially if Trump is planning to reduce energy prices by 50% within his first year, as he promised.

Trump’s potential Cabinet officials in the energy space are consistent with that message, according to both Macchiarola and Deora.

“Burgum has a pretty clear track record in being supportive of all kinds of energy investment and given the very real need for more energy infrastructure of all types, it seems hard to imagine that somebody of his background and his business competence and his governance competence would try to suppress any reasonable technology from being deployed as quickly as possible,” Deora said. 

North Dakota is one of the leading states in wind energy, utilizing the source for more than one-third of the state’s electricity.

As for Wright, although he has denied the existence of a climate crisis, he worked in the solar industry as well as oil and gas, according to Trump’s statement announcing his nomination.

“He’s not necessarily against any technology, he’s just going to be for certain technologies,” Deora said. 

Ultimately, an all-of-the-above approach to energy would effectively defeat the purpose of climate policy, even though it might sound reassuring to sectors that would be negatively impacted by a targeted attack on renewables.

“Climate change isn’t about how many solar panels we put up. Climate change is how much carbon dioxide and methane that we do not admit,” said Deora.

“The concern isn’t about whether we keep business and keep solar developers happy. This is really about, are we going to produce more fossil fuels?”