How big is our market?
Two weeks ago at the me&u Table Talk, Next Phase unveiled our latest research on the size of the UK food hall sector. We introduced a significant development by proposing to reclassify the sector as Multi-Vendor Operations (MVO). This new classification, for the first time, allows us to segment the market into specific categories, providing a more accurate, like-for-like comparison of operating and business models across the sector. Our new classifications are as follows -
Food Halls: These are managed by a single operator who provides kitchen spaces to independent vendors. They typically operate under one roof and six days a week. The operator often owns and manages bar operations.
Market Food Halls: Food halls located within larger, traditional markets. Market operators or local authorities typically manage these.
Street Food Markets: Usually operate three to five days a week, with some venues open seasonally. Located in a variety of indoor and outdoor spaces, these markets are managed by a single operator who oversees the venue and bar operations, while independent vendors run kitchens.
Urban Container Markets: Venues that occupy vacant spaces, often serving as temporary placeholders for future developments. They frequently include a mix of food, retail, and other operations.
As of February 2024, we had identified 84 Multi-Vendor Operations (MVO) businesses in the UK. That figure has now increased to 114—reflecting a 36% growth—driven by a combination of new openings, enhanced research, and the reclassification of existing venues. Additionally, the number of MVOs in development has grown by 38%, rising from 38 to 52 venues currently being discussed, planned, or under construction.
Food Halls are the largest segment in the market, with 73 venues currently trading. Greater London dominates with 30 locations, followed by Greater Manchester with 9, Liverpool with 6, and Sheffield with 4. These four cities alone account for 67% of all food halls in the UK. However, there is significant potential for growth in other major cities like Birmingham, Glasgow, Bristol, Leeds, and Leicester. This potential growth should be a source of optimism and excitement for the future of the sector, as it opens up new opportunities and markets.
Food Halls represent the largest share of sites in development, with 37 new locations currently in the pipeline. This includes 8 sites in London, featuring significant projects from BoxPark, Market Halls, and MarketPlace, as well as, once again, strong rumours of the long-anticipated entry of Time Out Market into the capital. Outside of London, new developments include 3 sites in Manchester, 2 in Birmingham, 2 in Glasgow, and 1 in Cardiff.
When it comes to operators with multiple sites, Blend Family, Mercato, and MarketPlace, each have 4 locations, while BoxPark, Market Operations, Stack, and Market Halls each operate 3. All of these operators have ambitious expansion plans—Stack is exploring 8 new sites, MarketPlace 4, and BoxPark 3.
It’s important to note that the Multi-Vendor Operation (MVO) sector is still relatively young, but it has demonstrated strong resilience compared to other areas of the hospitality industry. As a result, investment and funding are readily flowing into the sector for established operators. While we are still some way off from seeing significant market consolidation, it is likely to happen as the sector continues to mature.
Market Food Halls are an exciting and growing segment of the industry, with markets having traditionally been the home of street food in the UK. Although currently small, with only 7 standalone food hall venues operating within markets, this number could be significantly higher if mixed-use market halls combining fresh food, retail and street food are included. At Next Phase, we are involved in multiple projects and are aware of many more where councils are incorporating food halls and street food markets to boost profitability and attract newer, younger audiences. Councils are exploring various operating models, including council-run, public/private partnerships, and traditional lease agreements.
We are aware of 9 significant market food hall projects in the later stages of development, with many more in the pipeline, indicating that this sector will play a crucial role in regenerating the centres of our smaller towns and cities. If we include venues that fall within the wider classification of mixed-use modern markets, this often overlooked segment of the street food industry is already playing a critical role in shaping street food trends outside of major city centres.
We are confident that this sector will continue to see considerable growth as councils aim to boost the profitability of existing markets by incorporating more food and beverage-focused solutions and exploring public/private partnerships where possible.
Street Food Markets are an essential and significant segment of the sector. Our classification's primary distinction lies in their operating hours, and in some cases, they are outdoor or seasonal venues. Currently, there are 25 operations across the country, but with only 3 new sites in development, growth in this area has been minimal—a huge missed opportunity, in my opinion.
Street Food Markets have the unique ability to pop up in disused buildings, undeveloped plots of land, and car parks—virtually anywhere. Councils, landlords, and developers could leverage them as a tool to generate interest, increase awareness, attract footfall, and create revenue from underutilised spaces. A prime example is Feast at the Mills in Wigan, developed in collaboration with the Heaton Group, which transformed buildings earmarked for demolition into a thriving weekend market, serving as a precursor for future developments.
The final sector, Urban Container Markets, currently has 9 sites, with 3 more in development. While it is a smaller part of the sector, it holds significant potential due to its larger footprints. These markets differ from food halls in several ways: they often offer lease agreements instead of revenue share models, lack centralised seating, and frequently incorporate retail operations. Despite these differences, Urban Container Markets can play a vital role in the quick and cost-effective regeneration of our towns.
In conclusion, our sector is still in a very exciting phase of growth and development. This is highlighted by perhaps the most significant fact of all—no food halls have closed this year. Compared to the closures seen in the restaurant and pub sectors, MVOs are clearly meeting consumer demand and providing the right offer at the right time, showing no signs of slowing down anytime soon.
You can download a full copy of the Next Phase and me&u MVO report from the latest the table talk here - https://hubs.ly/Q02RCvRT0
If you are interested in learning more about the food hall sector, please do not hesitate to contact us.
