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Trend or just a fad?
So, the question now is: Are food halls
a real trend, or just trendy? Our research
suggests that answer is clear—a definite
trend. The intense popularity that food
halls are experiencing did not occur by
chance. The rise of food and beverage
retail, the explosion of new and unique fast
casual and chef-driven startup concepts,
and the increasing in restaurant rents in
major cities are among the many real estate
factors that have aligned to propel this
trend. The need for incubator space and
the relatively cheaper overall rents that
operators face when opening concepts in
food hall environments compared to
leasing independent space are all positives
when it comes to feeding future demand
for food hall space.
But developers should be aware of a few,
larger trends that have played into the
food-hall surge. Among them are the
emergence of “foodie” culture over the
past two decades, demographics that
resulted in millennial consumers driving
demand and preferences, and the strong
growth of urban markets in the post-reces-
sion era. Developers, food purveyors (of
any type), and investors would do well to
recognize what those trends represent: a
new consumer who looks for authenticity,
source-ability (farm-to-fork), quality and
uniqueness in their food offerings, as well
as quality in the surroundings in which the
food is presented.
To use a baseball analogy, the food hall
phenomena is perhaps in the second or
third inning of the game. The trend has only
really just begun. There will be plenty of
new projects over the next couple of years
with, inevitably, some clear winners and
losers. However, managers of those proj-
ects who are wise in their site selection
process, who don’t cut corners and who
build resonance with consumers based on
the values of authenticity, quality and
community will be the ones that experience
the greatest success.
The trend has only really just begun… projects that
are wide in their site selection process… that build
resonance with consumers based on the values of
authenticity, quality and community will be the
ones that experience the greatest success.
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Food Halls of America 2016