STORES Magazine - April 2018 - 19
In Europe, a culinary explosion designed to
immerse customers in a total food experience has
resulted in over 100 food halls; about 200 venues
are in the pipeline for major cities like London and
Paris over the next decade, according to "Food
Halls of Europe," a report by global real estate
services company Cushman & Wakefield.
The growth is due to several factors - principal
among them is that more people are traveling
throughout Europe than ever before. Travelers are
increasingly attracted to food destinations, the report
said, and when they return home they are likely to
continue to seek out the food-related experiences they
enjoyed on their travels.
DRIVING FOOT TRAFFIC
The evolution of this concept is slightly different in
the United States, where the food hall evolved from a
hybrid of transit-oriented development and tourismbased retail. It could make food halls the saving
grace for malls that continue to lose their anchor
tenants and are looking for a diverse way to fill the
A report on 2018 retail trends by FGRT noted that
malls have already evolved into food destinations,
and food halls - rather than the typical food court
- will drive more consumer traffic and offset the
effect of store closings.
"Food halls are not just upgraded food courts, but
spaces that offer products made by local artisans,
food-oriented boutiques, butcher shops and ...
interactive elements such as entertainment and
classes," the report said.
The food hall expansion is one reason for a decline
in shopping center vacancies. In fact, an increasing
number of mall operators are considering food halls
as anchor tenants to fill big box spaces.
In 2006, the Westfield Group was one of the
first developers to recognize the potential when it
started incorporating non-traditional vendors in
the food court in the Bloomingdale's wing of one of
its properties instead of traditional food court fast
feeders like McDonald's and Taco Bell. The new and
unique tenants included the Buckhorn Grill, Sorabol
Korean BBQ and Asian Noodles.
Since then mall operators have begun to focus on
more diversity for their food courts. Few have gone
as far as adding artisanal food vendors, although
that will occur with greater frequency going forward,
according to a Cushman & Wakefield analysis.
"It's a perfect way to connect with consumers while
backfilling vacant space left by other retailers who
have suffered from the latest wave of consolidations,"
says Garrick Brown, vice president of retail research
for Cushman & Wakefield.
Top 10 European Food Halls
Time Out Market - Lisbon, Portugal
Dinerama - London
Mathallen - Oslo, Norway
El Nacional - Barcelona, Spain
Copenhagen Street Food "Papiroen" - Copenhagen, Denmark
Torvehallerne - Copenhagen, Denmark
Market House- Altrincham, Manchester, U.K.
Foodhallen - Amsterdam, Netherlands
La Platea - Madrid, Spain
The Kitchens at Old Spitalfields Market - London
Source: Cushman & Wakefield
LOW FAILURE RATES
In tracing the segment's recent growth, Cushman
& Wakefield found the number of existing food hall
projects increased 37 percent in the first nine months
of 2016; by the end of 2016, the U.S. had a total of 35
new food hall projects totaling 771,000 square feet. By
2019, Cushman & Wakefield anticipates as many as
200 major projects throughout the U.S.
"We just updated our numbers for 2017, which now
show about 155 food halls in existence and 80 more in
the planning stage," Brown says. "By the end of 2018
there will be about 180 in existence."
He says the Time Out Group, whose food hall in
Lisbon is considered one of the world's top food halls,
has three under construction in Chicago, Miami and
Boston that will run an estimated 40,000 to 60,000
But the biggest spike in growth is in miniature food
halls; Brown points to their expansion in high-rise or
multi-family projects by developers who see them as
STORES April 2018 19