Featuring the Future: Food Halls

Mall food courts are OUT and food halls are IN.

If you missed our last article on mall food courts, check it out here. We took a look at the younger generations' changing preferences and how this results in mall food courts fitting well in previous generations but not in the modern age.

While mall food courts have been on a downtrend, their close, futuristic cousins have been on the rise: food halls. Here are some crazy stats as proof:

• In 2010, there were only 25 food halls across the US.

• By 2019, there were 220 food halls across the US.

• As of October 2023, there were 364 food halls in the country, with more than 120 additional food halls expected to open by the end of next year.

What's with the proliferation of food halls, and why are they so popular?

WHAT ARE FOOD HALLS?

Food halls are essentially groupings of local restaurants that operate small vendor booths in a hall setting, where customers can walk around different booths, order their food, and sit in a hall-style layout. Typically, food halls don't feature fast food restaurants or other commercial restaurant chains (i.e., Olive Garden); they showcase local restaurants and a variety of global cuisines.

Optimist Hall in Charlotte, NC

WHY ARE FOOD HALLS POPULAR?

The intentional choice to feature local restaurants is a huge hit among a more health-conscious and sustainability-driven younger generation. It's no longer cool for younger generations to hang out over a factory-made Big Mac or $5 Footlong. Food halls are a perfect fit with this modern age that seeks a unique foodie experience when going out to eat. Additionally, the amount of high-quality food options in one central area can be attractive for large groups of people to come together and want to be inclusive of a diverse range of cuisine interests. Compromises don't have to be made where members of a group don't get what they want when eating out.

Food halls do much more than just providing a high-quality food experience. They also create a vibrant social atmosphere, featuring bars, craft beer, event venues, retail / office spaces, shopping, and live music. This presents an opportunity for customers to socialize and engage with the community beyond just sharing a plate of food. Food halls become a place where customers can stay for hours together to have a hands-on social and community experience.

Legacy Hall in Plano, TX, featuring a bustling social scene with bars, food, and events

Lastly, food halls tend to be precisely calculated pieces of real estate. They tend to co-locate near hubs of things to do, such as a business district, retail spaces, or parks. This makes them easily accessible for population hubs to stop by for a quick bite on their way to/from other things in their daily calendars. The spillover both boosts the number of customers that food halls attract and the number of customers for other venues around the area, creating a win-win situation.

SPOTLIGHT: PONCE CITY MARKET

Ponce City Market in Atlanta, GA, featuring a mix of restaurants, retailers, and activities

I've been living in Atlanta for the past year, and it seems like we have a food hall (or two) in every pocket of town. The one that stands out the most for the iconic Atlanta food hall experience is Ponce City Market. Located along the Beltline - a loop of urban redevelopment that connects parks, public transit, and housing - Ponce City Market is situated in one of the most bustling new areas around town.

Customers can enjoy coffee, dessert, drinks, filling meals, and more at the food hall. Afterwards, they can take a relaxing stroll along the Beltline, walking past graffiti murals, street performances, parks, and breweries. There's even a grocery store and pharmacy right outside Ponce. On weekends, Ponce also features vendors such as local artisans, restauranteurs, and other small businesses in an outdoor market. If customers still have energy left in them, they can walk through retail stores such as Lululemon, Nike, and Williams-Sonoma. It's almost like a new-age mall, replacing the commercial, big-box, stuffy feel in traditional malls with a boutique, authentic, artisan feel.

SO WHAT?

Food halls are here to stay and expand over the coming decade. As a restauranteur, it's important to be aware of why they are so popular and how to capitalize on the opportunities with food halls. Embrace them, or risk getting left behind.