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LAS VEGAS—Five or 6 years ago, there were probably only 10 or 15 food halls. But today there is a huge demand and the growth is there. So said moderator Naveen Jaggi, president of Americas Retail Advisory Services at JLL, based in Houston, at the recent food halls panel at ICSC RECon event here in Las Vegas.
According to panelist Phil Colicchio, executive managing director of specialty food and beverage, entertainment and hospitality consulting at Cushman & Wakefield, there will be 450 food falls by 2020.
According to Colicchio, 20% of the current food hall footprint is in New York City, so that leaves a lot of room for growth across the country. “The future is bright. We are seeing a halo affect around food halls.”
But what makes a food hall successful? According to Colicchio, it is two things: design and operation. “We are living in a wonderful time in the US where there is great food in every city and town across the US. You will be able to curate local vendors in many of these spaces who will understand their communities and then you fill in the rest.”
And while curating the vendors is fun, according to Colicchio, if you don't design well, and don't operate well, you don't have a good infrastructure. “We talk less about the kind of food we will have until we know who the designer and who the operator is.”
Panelist Will Donaldson, CEO of Politan Group, added that there are so many varieties to food halls and there are 100 different ways to do it. “The different context of the types of food halls out there is relevant to the real estate community because what works in one place doesn't work in another. There are so many different ways that it works well. We focus on the individuals. We focus on being impactful on them because if we can take away on some of the brain damage for the chefs, they can create more time for their customers.”
As for panelist Eldon Scott, president of Urbanspace, based in New York, NY, he expects that there will be a lot of mistakes made on the food hall front. “People will pick locations where the sales will not be there. We cannot lose focus on that. We are a market operator and operate other small businesses. The key to success is sales.”
As for what drives those sales? Scott says that there are a million different factors to be mindful of, including picking the right location, whether it is sized correctly and if it is a stable business 12 months, two years, or three years out.
Cushman & Wakefield's Garrick Brown, VP of the Americas and head of retail research, recently also put out a food halls report, which said that what began as a trend that was largely relegated to just a few markets, has since exploded. When C&W first reported on the food hall movement, the concept was still in its infancy.
Check back with GlobeSt.com in the next few weeks for a details slideshow with more from the C&W report. In addition, keep checking back for more in the coming week for wall-to-wall coverage surrounding the end of the Las Vegas ICSC RECon show and overall trends in the retail market. Also, take a look below at stories you might have missed below.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
