What: Harrods increasingly sees itself as a dining destination.

Why it is important: This is not specific to Harrods. Restaurants and bars are an increasingly important part of department stores businesses as they need to provide experience and be a destination for their customers.

Harrods, the world-famous luxury department store in Knightsbridge, London, has seen a significant increase in revenue from its restaurants and bars since the start of the COVID-19 pandemic. Despite dining not being the first thing consumers think of when it comes to Harrods, the department store’s restaurants and bars are now becoming a revenue driver for the business.

Research by Harrods shows that when customers engage with the 26 store’s restaurants and bars they spend twice as long in the building and twice as much money (when compared with pre-pandemic period, this represents a turnover up +44%, and +49% vs. 2019). This has led to a focus on creating “destination dining” experiences, such as the new rooftop Studio Frantzén, to draw local, affluent consumers to the store. The goal is to provide systematic opportunities to convert shoppers into dinners and vice versa. 80% of Harrods Rewards card holders use restaurants now, vs. 29% pre-Covid.

Harrods sees dining as an experience as crucial for its future, which is why it also encourages brands to do so, such as Dior which has opened a café on its Harrods point of sale.

How Harrods built a booming restaurant business