Why the Sale of Shelter Hall Could Mark a Tipping Point for Food Halls

The acquisition of Shelter Hall from Sessions by Market Halls could prove to be a pivotal moment for the UK food hall sector. While the number of food halls and multi-vendor venues remains modest compared to the broader hospitality industry, the revenue potential far exceeds that of most traditional formats.

At last month’s me&u Food Hall Table Talk event, we reported a 43% increase in open venues between March 2024 and March 2025, from 84 to 120. Sites in development grew by 53%, from 38 to 58, with just one closure in the same period. That growth signals momentum, but the sector is still early in its lifecycle.

What makes this sale so significant is the absence of a clear market leader. Fewer than a handful of operators currently run more than two sites. Brands like Boxpark, Stack, Blend Family, Market Place, and Market Halls are leading the way. We’re now seeing major moves from the Compass backed Kerb Group, and the long awaited entry of global player Time Out Markets, but the field remains wide open.

You’d be hard pressed to find a deal as well matched as the sale of Shelter Hall. For Sessions, it marks the next step in the evolution of the business. Shelter Hall has been a highly profitable, low risk test bed for many of the brands now thriving in the Sessions ecosystem. From my time consulting with the company, I know Dan Warne’s vision has always been to create something genuinely different. Sessions’ future lies in scaling its platform of founders and food brands, a model that increasingly resembles a tech business more than a hospitality one. That shift is reflected in its recent recognition as the 31st fastest growing startup in the UK by Shifted.

For Market Halls, the acquisition makes solid business sense. During my time with the business, I saw firsthand the challenges of rapid growth and the impact of the lockdown. Like many, Market Halls stabilised, consolidated, and has now resumed its growth strategy.

Shelter Hall offers the full package: a prime location, strong revenues, a profitable trading history, and, crucially, a dedicated and experienced operating team. It’s a smart acquisition, one that immediately boosts turnover, expands Market Halls’ footprint, and secures a dominant position in a major city in one move.

But this deal is about more than two businesses. It also points to a sector that’s starting to mature and define its long term growth path. While the most significant expansion will still come from the development of new sites, especially as operators refine their models and secure investment, we’ll also see growing interest in the acquisition of independent venues and the buying of smaller operators, as highlighted by the change in ownerships of Epsom Social, Buck Street Market in Camden and Hatch in Manchester. With prime sites limited and build costs high, growth strategies are becoming more mixed, combining new builds with targeted takeovers.

Underlying this is a shift in consumer behaviour that continues to drive demand. Food halls are ideally suited to how people want to eat now: fast, informal, and with choice. They offer something traditional restaurants can’t, a blend of convenience, variety, and social experience that appeals across age groups. In a post Covid market, that format has only become more relevant.

Technology is also playing a major role, working with partners like me&u. Operators are proving that a data led approach can offer real advantages. By tracking brand performance, customer preferences, and operational metrics across multiple venues, they can quickly identify what works, replicate success, and cut what doesn’t. This kind of agile, scalable model is becoming a clear differentiator.

Real estate dynamics are another factor. Developers and landlords increasingly see food halls as anchor tenants, capable of driving footfall, increasing dwell time, and breathing life into mixed use schemes or underperforming assets. From repurposed department stores to transport hubs, food halls are becoming part of the long term strategy for many regeneration projects. Boxpark’s move into Liverpool Street Station, or the imminent launch of Corner Corner by Kerb and Broadwick Live, are prime examples.

But food halls also come with operational complexity. Unlike traditional restaurants, you're managing multiple brands, event programming, customer flow, and vendor relationships all under one roof. That’s why a strong operating team is so critical to success. It’s not just about the model, it’s about the execution. The team at Shelter Hall is a key part of why this deal works.

There’s also value in looking beyond the UK. In the US, where the food hall market is more developed, we’re seeing operators run 10 or more sites but not without issues. Vendor churn, uneven performance, and stretched management capacity are all emerging challenges. As the UK market grows, those lessons will be increasingly relevant.

Looking ahead, success in this sector will come down to three things: securing the right locations, building robust operating systems, and maintaining a distinctive, flexible brand mix. If the early wave of growth was about proving the model, the next phase will be about refining it, scaling it, and staying relevant in an increasingly competitive field.

The Shelter Hall deal might not be the biggest on paper. But in strategic terms, it could be the moment the food hall sector entered its next chapter.

Simon Anderson, co-founder of Next Phase and a leading expert in food halls.