Hallmark of community dining

For an industry where many of the key figures are closely connected and in the know, Market Halls’ big announcement last month took many by surprise.

A project from Xscape founder Andy Lewis-Pratt and Pit Cue investor Simon Anderson, Market Halls laid down the gauntlet with plans for sites in Victoria, Fulham and a flagship Oxford Street site, part of a plan to open 10 or 12 overall, with Liverpool and York in its sights.

Privately funded by investors in the property and leisure sectors, the ambition of the project demonstrates just how seriously this trend is being taken, with Market Halls looking to quickly establish itself as a major force in the space.

Tapping into the food halls of America, Europe and Asia, the concept of communal dining (typically large shared covered spaces, catered for by multiple traders) is, of course, nothing new with the likes of Street Feast, Boxpark and Incipio each developing contrasting concepts around the idea.

Simon Anderson, who is leading on F&B at Market Halls, is looking to attract small but established independent restaurant operators, as well as well-known street food operators.

He told MCA the primary influence for Market Halls had been the many examples in America, where the concept is well established. “We are well behind cities like New York, which has more than 20 food halls,” he said. “There’s a real hunger in our target audience for this kind of dining.

“The impact in the US has been huge. I think it offers another way for people to experience dining and going out and to enjoy everything under one roof. Anyone can come along and eat, it appeal to all ages. “I feel we’ve got something that has got great legs and potential to be a success.” Market Halls are not out on a limb in the belief in the food hall concept. Commercial property agent Cushman & Wakefield describes the potential in the UK as “massive”, with 16 sites expected to open in London alone over the next five years.

Location must be right

Partner Thomas Rose told MCA the number of sites coming on line could create a food operators’ market, with fierce competition among food halls to attract the best concepts.

According to Rose, with appetite for eating out still strong among consumers, the phenomenon is unlikely to cannibalise London’s restaurant market – though he said it could take market share from restaurants in the regions.

Rose said that with competition likely to be strong, getting the location, offer and space right would be crucial.

“You go to a food hall for environment and experience – you want a buzzy communal atmosphere. If you just have a boring soulless box, you have to question if that will work. “And you have to find great food operators. What we’ll see is increasing competition to get the best operators. “Will operators align themselves with one food hall? If an operator does kiosks in every food hall will that take away their USP?

“This piece around the competition and demand for operators is really interesting. Food halls are all going to be competing for the same people, so it will be a kiosk operators’ market.” While few examples exist of the US-style food hall, communal dining and street food have already had a major impact on eating out, and the key players are watching closely, while evolving their own offerings.

An obvious pioneer and stand-out performer of this movement is London Union, the Jonathan Downey and Henry Dimbleby-led operator of Street Feast venues Dinerama, Hawker House and Giant Robot. The pair has created what some in the industry have approvingly described as the biggest and best bars in London, with a handpicked line-up of credible street food traders, many of which have gone on to open their own restaurants.

Downey believes the model is far more attractive, particular to traders, because the dynamics of opening a restaurant have become prohibitively expensive for those without deep pockets.

A good operator is hard to find

He told MCA: “There’s plenty of space in the market for US-style food halls. I just hope that, as a customer, they are good ones with an interesting variety of food – not a lot of the bland crap you get in the US. “The challenge is getting the good operators. We are finding it with some of our traders, they can do one or two really well, but beyond that it’s a challenge.” The offering taps into a trend that diners are looking for and which conventional restaurants struggle to compete with under one roof, according to Downey.

“They offer variety, speed and quality generally. It’s what people want, but historically they’ve been done really badly. “The set-up costs are so much smaller, the risk is massively reduced, and the return is much greater. You’re not investing a million in a site, and if it doesn’t work you can throw the towel in and move on.”

Another operator that has popularised the form is Boxpark, the shipping container concept from Boxfresh founder Roger Wade. Wade founded it as a pop-up retail-led scheme, but soon found the balance of demand swinging in favour of F&B. He now believes new entrants are copying the likes of Boxpark. “Three or four years ago no one was even looking in this direction,” he said.

“You’ve got to look at the relative success of Boxpark and Street Feast – it’s going to create imitators and that’s good because it gives customers more choice. “I don’t think the concept is anything new, but I think there’s lots of room in the market place for more.”

Seeking a fanzone

With two shipping container sites in Shoreditch and East Croydon, Boxpark’s next project at Wembley Stadium sees it take on another F&B-led concept popularised in America – the fanzone. Wade wants to tap into the carnival type atmospheres of pre and post sports and music events, with a mixture of big-name casual-dining and fledgling street food operators. “We want to redefine the concept of a fanzone,” he said. “The appeal is Wembley is beyond a food hall experience, it’s about creating a whole customers and fan experience.”

While Boxpark has some more well- established anchor brands like MEATliquor and YO! Sushi, at the street food end of the spectrum is Kerb markets, which prides itself on being an incubator for new concepts, but which is also evolving into more permanent, food hall-type formats.

Kerb managing director Simon Mitchell describes some of the principles for a successful food hall or market. “Quality, variety and authenticity is what you need. Just opening a food hall with 10 traders doesn’t guarantee you success – especially to have longevity. “It’s going to be very interesting to see what happens in the next few years – a lot of restaurant operators are having a very tough time. The benefit of these food halls is the shared risk.”

“There’s a huge benefit for the smaller operators – you might see a more interesting and varied offering because the barriers to entry are so much smaller.”

Also at the forefront of communal dining – though perhaps not what many would define as a food hall – is Incipio Events, the operator of Feast and Pergola concepts, which have seen Patty & Bun, Pizza Pilgrims and Flat Iron rise through the ranks.

Like others, founder Charlie Gardiner sees the popularity of communal dining as a clear response to shifting consumer demands for variety, speed and large social spaces.

“If you go to a traditional restaurant you’re stuck with one genre of food, one space and then you have to split the bill at the end.

“The way society has moved, people are quite impatient, they want to eat when they want, and leave when they want.” With increased competition, however, comes the risk of saturation and poor imitations, Gardiner adds.

“I don’t think you can have 50 food halls around London. People still like to go to restaurants and bars. It’s limited, you’ll get to a point where it gets saturated. The ones that survive will be the innovators.”

Outside the capital

The idea is not confined to London, with early innovator Altrincham Hall Market, followed by Mackie Mayor in Manchester, offering a very different type of experience. Led by Nick Johnson, formerly of urban regeneration project Urban Splash, Altrincham Market has been credited with revitalising the town and recapturing a sense of community lost amid a high street dominated by brands.

However, Johnson, who runs Market Operations with Jenny Thompson, rejects the food hall concept: “We defy definition – we are part market, part restaurant. We are a curious, though happy, hybrid. “When people experience it they get it. Food hall does us a disservice frankly, because of all the imagery it conjures up, while market doesn’t really describe appropriately what happens.

“When people say it’s a great concept it makes my toes curl, as it suggests some branded idea that’s going to be churned out.”

With an emphasis on relaxed communal dining, high-quality food served at the table, and retail as well as foodservice, Johnson said the idea was inspired by the continental tradition for everyday eating in public spaces.

“The difficulty in the UK is that high streets are dominated by multiples, so it’s rare to find a town with a sense of identity and spirit of community,” he said. “What we’re trying to do is assert that – and while we don’t have weather on our side, we make it happen indoors, and conjure a community spirit in the winter months.”

So what next for food halls? Time Out Markets, widely considered to run one of the best in Europe in Lisbon, is hoping to win an appeal to open in Spitalifields. Meanwhile, Eataly is due to make its debut in Bishopsgate later this year.

According to Thomas Rose: “We think the trend is going to be massive. There’s so much going on in the UK.”