Does our sector need a new name?
What is a food hall? The team at Next Phase and I encounter this question all the time, and for a good reason—the distinctions between food halls, street food markets, traditional markets and food courts are often blurred. Given the sector's growth and the diversity of offerings, has the time come to establish new classifications?
This confusion was highlighted in a recent study aimed at determining which European city boasts the best food “markets”. The research focused on cities with at least five food “markets” and used a simple index that considered two factors: the average Google Reviews rating of all the markets in the city and the total number of markets.
Google reviews provide a useful benchmark, but they are inherently subjective and not always the most reliable for direct comparisons—especially when you're not comparing "apples to apples", meaning this is where the core issue lies: markets aren't always food halls, and food halls aren't markets (most of the time!). Even the most ardent Londoner would struggle to claim that our markets—aside from Borough Market—are superior to those in Madrid or Barcelona. However, when it comes to food halls, London arguably has more and better options.
This confusion deepened when researchers ranked the top ten highest-rated British food markets, six of which are markets and four food halls. Of those six markets, five are street markets, with one operating only six hours on a Saturday. Is it fair to compare Borough Market, with 101,000 Google reviews, to a place with just 484?
Similarly, can we realistically compare Junction Market, a small beloved neighbourhood food hall with 248 reviews, to the massive Mercato Metropolitano, which attracts 60,000 visitors a week and has over 12,000 reviews?
I apologise for the lengthy digression. It's clear that we need new classifications for the food hall sector—or, at the very least, greater clarity between food halls and markets.
The Next Phase team has probably visited and worked on more food halls and markets in the UK than any other organisation. Through this experience, we have developed the most comprehensive database of UK operations. After thoroughly analysing the entire sector, it has become clear that classifying by operating model is the most effective way to fully and accurately understand the industry.
Multi-Vendor Operations—The defining characteristic across this entire hospitality sector is that these venues host multiple vendors, spanning food, drink, competitive socialising, and retail. While the sector remains small compared to the restaurant or pub sectors, its venues' size, scale, and revenue potential—combined with the sector's rapid growth in significance—make this catchall classification both relevant and effective.
To enable more accurate and meaningful comparisons, the MVO sector can be strategically divided into four distinct categories:
1. Food Halls—Typically housed within a single building and open at least six days a week, these venues are managed by a single operator who provides kitchen spaces to independent vendors. These arrangements are usually based on shorter-term revenue-sharing or concession agreements rather than traditional leases. In most cases, the operator maintains ownership and control of the bar operations.
2. Market Food Halls—Situated within larger, traditional markets, these food halls are typically operated by the market managers or local authorities. The agreements for kitchens and bars are a mix of revenue-sharing models or, more typically, traditional market leases.
3. Street Food Markets—Typically operate three to five days a week, with some being seasonal. Located in a variety of buildings or open spaces, they are managed by a single operator who oversees the venue and bars. The kitchens are run by independent vendors, usually under revenue-sharing agreements or, in some cases, through pitch fees.
4. Urban Container Markets—These venues occupy vacant spaces, often serving as placeholders for future developments, with shipping containers as the primary form of construction. They warrant their own classification because, in addition to housing kitchens and bars, they frequently include retail and other operations. These markets operate under a mix of revenue-sharing and lease models.
Traditional Markets—These should be considered outside of these classifications, as they are primarily focused on retail and food retail rather than hospitality. If a traditional market includes a food hall or street food market, those components should be classified separately under the appropriate category.
Of course, these classifications are all arbitrary, as journalists and customers overlook or do not care about the complexities of our industry, preferring to view it as a unified whole. However, this can lead to misunderstandings, such as when visitors arrive at a food hall expecting to buy sprouts or try to find street food at a traditional market.
By adopting these new classifications, we can more accurately measure our sector's market share, adoption, growth, and potential. We plan to unveil this new market landscape at the upcoming Food Hall Table Talk with ME&U next month, where we will share insights, such as the size of the sectors, and facts like that with the current projects in development, UK Food Halls are projected to grow by 50% and Market Food Halls by 100%.
