Where do food halls go from here? Part 1

When considering the future, it is always sensible to consult the past. In my opinion, two openings from 2014 played pivotal roles in shaping our modern food hall scene. One is Time Out Market Lisbon, a 32,000 square-foot food hall with 900 covers, 26 kitchens, eight bars and cafes and five shops. The other is Altrincham Market in Greater Manchester, a converted market hall of no more than 6,000 square feet with 180 covers, six kitchens, two bars and a coffee shop.?

These two ventures could not be more different in size or scale, but they share one important ethos of showcasing the best talent and food in their area. In analysing these two styles of operation – one being large and marquee, the other hyper-local and community-focused – it is easy to understand the influence they had on future food halls and, in my opinion, why these two broad styles will continue to shape the operation, success and impact of food halls in the future.

Large marquee food halls play a significant and growing part in the culinary landscape of our large cities. Food halls are perfectly suited to modern consumers and the economic climate. Customers love their unpretentiousness. They are particularly popular with millennial and Generation Z audiences, but if you look across the floor of a successful food hall you will see a diverse selection of ages, families, office workers, friends, singles and groups, all enjoying the space equally. Choice and the ability to cater to different tastes and dietary requirements are key, as is the ability to order and pay individually, especially in these difficult financial times.

Covid affected the sector, with several major projects either cancelled or stalled. But almost all the main players survived, and everyone has seen growth since the lockdown. A key post-covid development is a shift in the kind of deals being considered, with management agreements as well as traditional leases now being offered, especially as landlords have started to understand the benefits of improved tenant mix, letting appeal, increased rents and property values that proximity to a successful food hall brings to their surrounding estates.

Location and density of population are the two most crucial factors in the success of large food halls. Anyone who has struggled to find a seat on the terrace at the popular Shelter Hall on Brighton’s seafront, sat at the cheese bar in Kerb Seven Dials or queued for a roti in Victoria Market Hall, can only marvel at the advantage of a great location – whether it is close to a transport hub, landmark, seafront, city or business centre. Large food halls need that density of population and footfall because the biggest challenge you face as an operator with 200, 400, 800 or more covers is to make the place feel alive on a busy Friday night or a cold Tuesday afternoon.

Sadly, in the food hall world, the perfect-sized building in the perfect location rarely presents itself. It is more often the case that the perfect building presents itself in a not-so-prime location. This is where the superpower of large and small food halls can come into play.?

In managing and curating compelling independent traders with quality food offerings, superior bars, drinks and entertainment, all within a stunning or unique building, then you have a fighting chance of becoming the most mythical of beasts – “a destination”. Mackie Mayor in Manchester and Cutlery Works in Sheffield are two perfect examples of this. We have recently seen a living example of the importance of offering with the turnaround of Arcade London, a stunning food hall that opened at an unfortunate time just before lockdown, with a slightly off-pitch location by Tottenham Court Road. Its partnership with London restaurant masters JKS instantly improved the quality and scope of their offering, bringing almost instant success with very little change to the building. In showcasing the best chefs and cuisine from a whole city, region or country in one location, food halls are perfectly positioned to benefit from the growth in culinary tourism, which by 2032 is expected to pass $4.530.9bn, according to Future Market Insights.?

The sector shows no signs of slowing, with several large openings to watch out for over the next year. Two are from Boxhall, the new food hall concept from the successful industry outlier Boxpark. First is a 20,000 square-foot space with two external terraces overlooking the historic floating harbour in Bristol, and most intriguingly, the conversion of the old Metropolitan Arcade by Liverpool Street station. Another is Shipyard, a 30,000 square-foot venue in the emerging St Johns district of Manchester, close to the new Soho House and Mollies Motel, with an operator to be announced soon. Perhaps the most ambitious is Arcade’s 24,000 square-foot opening at Battersea Power Station, which will house a mixture of new and existing food concepts along with three standalone restaurants, games room, live music, taproom and cocktail bar.

Another exciting development for UK operators is the expansion into international markets. Kerb recently announced its plans to open a 24,000 square-foot site in the Potsdamer Platz area of Berlin with 12 kitchens and four bars. Mercato Metropolitano (operator in Elephant & Castle of the UK’s largest and best-performing food hall) is looking to expand into Europe and the US. The Middle East is a rich potential source of opportunities. Time Out currently operates a venue in Dubai and has announced further openings in Abu Dhabi and a huge 90,000 square-foot venture in Diriyah Square, Riyadh. There is also potential for operators to come the other way, with Boxooo, a UK-based international company, currently developing three sites in Saudi, with plans to open here and in Europe. It has a unique business model that combines digital and hospitality with a 360-degree solution for operators, entrepreneurs, start-ups, and customers.

But there are only 76 cities in the UK, of which maybe just over half have the population to support a large food hall. Meaning it’s the other 1,186 towns across the country that provide the most potential. If you view large food halls as those few football teams chasing Champions League glory, then the most exciting, impactful and challenging element of the future of food halls is every other team in all the leagues. This is where operators must interact with their fans in completely different ways to succeed. They are community-driven, passionate and relevant, ingraining themselves into their locations by providing a more valuable offering. It means food halls have the possibility to make themselves vital in reviving the fortunes of our high streets and town centres.?

Simon Anderson is a food hall consultant at Ideas Food Consultancy and was previously chief operating officer at Market Halls. This piece first appeared in?Propel?Premium.