Where do Food Halls go from here? (Part 2)
In my last piece, I focused on the large city-based food halls with their unique locations and impressive size, imagining them akin to the few football teams with the resources to chase Champions League glory. Hoping not to take this analogy too far, in the UK we have the FA Cup, the greatest football competition of all, where teams from cities, towns, villages and suburbs across the country get a chance at the big time. In the food hall world we have some smaller local food halls that punch well above their size and location and, on the right day, with the loyal support of their fans, can create a giant-killing upset.
I identified Altrincham Market as a key influence in developing the UK food hall scene. It thoroughly deserves its position as the poster child for the role of food halls in urban regeneration. It is blessed with many of the critical ingredients needed for success, which many others will need help matching. Chief among these is Nick Johnson, a visionary founder with the foresight to understand what his town required and the drive to make it happen. Next is a unique historic building, a traditional agricultural market hall and a covered open market, which can flex and change with the days of the week and the seasons.
Its location in Greater Manchester, with above-average demographics, provides an advantage over many similar towns its size. Finally, it had a local council with the bravery to support and back the change, weathering all the negativity that any change invariably generates. Altrincham has gone from a failing town to being voted by The Times as “UK’s best place to live in 2019”, with the market acting as a catalyst, giving other people and businesses the confidence to open in and around it, redefining what a market town should be in the 21st century.
Getting hold of a historic market building is an operator’s dream and, sadly, very rare. By far and away the most opportunities are in redeveloping redundant department stores and large high street shops. The high street is the most challenging and rewarding element of the future of food halls. When executed correctly as part of a host of complementary solutions, they can anchor and help regenerate our towns and suburbs with the potential to create real impact.
When opening a local food hall, it is essential to understand that the key stakeholders can vary. With large city food halls, it tends to be the simple landlord and tenant relationship. But many of our high streets have been repurchased by councils, with their regeneration being driven by them and their asset managers, bringing a whole range of advantages and disadvantages.
I must caveat everything by saying that food halls are not a guaranteed silver bullet, and several factors must be considered in making them successful. The utmost is why the opportunity exists for them in the first place. This is the changing landscape of our high streets and town centres. Whole industries, careers and degrees are built on this topic, but for me, everything always boils down to people. People’s habits and needs have changed, and our high streets and town centres have lost their relevance. People do not visit places they do not need. This makes understanding your actual customers and their communities the most critical factor in the success of local food halls. Altrincham highlights “people” as the crucial factor in its popularity, and that by understanding and giving opportunities to people, it planted the seeds of its own success.
Sometimes I do fear that just because department stores and food halls are both big, they are assumed to be automatic bedfellows. Big is not necessarily better. Too often, I see overly ambitious projects with too many covers to ever create the correct vibe, and too many kitchens to provide enough sustainable income for its traders. The venue’s size needs to be pitched to that of your audience and location, requiring the ability to flex between the time of day, weekdays and weekends to maximise revenue potential.
Department stores are often handicapped by being in ugly, soulless boxes from decades past. This is invariably countered by being in a great location with high footfall. They closed because they lost their role, importance and relevance; people would visit them because it was the first time they saw a colour television, held a Chanel handbag or heard a Walkman. They were places of wonder and convenience before mass-market economics and the internet eroded them.
To succeed, food halls must find new relevance. This can be achieved in many ways. The first question is, what does the location need? Entertainment is the current wonder drug of our high streets. On my travels around the country, I am amazed at how fast competitive socialising and experiential entertainment have spread. Food halls can capitalise on this trend, but it is often hard to compete with specialist operators, and points of differentiation are needed.
Food halls suit the programming of a wide range of events and entertainment. Many of our smaller towns have lost their live venues, and food halls can fill the gap with music, events and comedy. I have also seen success in instigating weekend craft, flea and vintage markets. All these uses must be factored into your design and layout to avoid creating dead spots when not in use.
The real secret to relevance is the entrepreneurship at the heart of the food hall business model. By thoughtfully curating their traders, food halls can offer lower barriers to entry, with the requirement for less capital investment allowing young, independent local businesses to take their first steps into owning and running their own businesses. This delivers an essential benefit in providing jobs and opportunities in locations where they are most sorely needed.
More importantly, those young chefs and businesses who start within the food hall can learn their trade in a safe, nurtured environment, earning the funds to open stand-alone restaurants. Their sous chefs and staff can develop new brands, and one day have their own food hall kitchens. Traders in the weekend markets can build a customer base and funds to open their own shops. Food halls should champion local brewers, distillers and producers. All this creates a cycle of development that can be vital to the local economy.
Key stakeholders within councils are starting to understand the importance of food halls, but we need to see more funding and access to grants. I would like to see more space being used for community uses, co-working and education. I have engaged positively with several colleges and universities on this topic. Whatever the plans, community engagement and outreach are vital in local locations. Like all our great local football teams, food halls must embed and endear themselves to their local communities. This should start well before they open, inviting them to help shape and influence the offer and curation.
A final practical point, pricing needs to be accessible and realistic. In large cities, food halls can be seen as a value alternative to restaurants, but the main competitors in many locations are McDonald’s and quick service restaurants, so you must price and create offers accordingly.
By placing people first, food halls can transcend pure hospitality and entertainment, becoming valuable assets to their communities. They can be hubs for entrepreneurship, boosting the economy, providing opportunities for new businesses and jobs and playing a critical role in regenerating our towns, high streets and suburbs, especially with the current economic hardships so many face.
Simon Anderson is a founder at Next Phase and was previously chief operating officer at Market Halls. This column first appeared in Propel Premium.
