2017/18 EDITION - Cushman & Wakefield
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2017/18 EDITION
WELCOME
Who doesn’t love to eat out? There is always
something exciting about being able to choose
CONTENTS
exactly what you fancy at that moment and for
it to appear soon after, as if by magic, in front of
you. The smells, the sounds and the people you 04 Food Halls – a definition
are with all add to the sense of drama. This isn’t 06 The rise and rise of European
just a meal. It’s an experience. Food Markets/Halls
And that experience is changing, as the massive 12 Interview – Time Out
and relatively sudden enthusiasm for food halls Market Lisbon
across Europe proves. Astonishingly, the total
number across Europe has already exceeded 16 Future trends:
100, with double that figure (covering 400,000 European Food Halls – Part 1
sq. m) currently in the pipeline. 20 Interview – FoodHallen
The opportunity this growth presents also 25 Interview – AvroKO
creates something of a conundrum for
landlords, shopping centre owners, managers 28 Future trends:
and food vendors alike. What should they European Food Halls – Part 2
provide? Where should it go? And how much 32 Interview – London Union
of it should there be? We aim to offer some
clarity – and also useful food for thought – 36 Top 10 Food Halls
over the following pages. 46 Food Halls across
Bon Appétit!
Europe directory
50 Get in touch
Thomas Rose Dr. Yvonne Court
Head of Leisure Head of International
& Restaurants Retail & Leisure
Consultancy
Cover photo: ©Daria Scagliola/Stijn
FOOD HALLS – A DEFINITION
Use the term ‘shopping centre’ It would be much easier for the
and, from one side of Europe to commercial real estate industry
the other, its meaning will be clearly if there was a single, widely-
understood. Sadly, the same is not understood term. In reality that
currently true for the phrase ‘food is unlikely to occur in the near
hall’. The term originated more than future. In the meantime, we can
a century ago in the large food at least be clear about what a food
sections of European department hall/market is not. Our definition
stores. Things have of course excludes venues that are largely
moved on since then. The template or exclusively open-air. Similarly, we
that has recently emerged in the believe those which sell mainly
United States (see p. 30) and which unprepared food fall within the
includes a mix of authentically category of the traditional market.
prepared food and drink offers, with Standard, more traditional style,
an emphasis on communal dining,is shopping centre food courts are
the best indication of how European also not included.
food halls are developing.
Ultimately, though, rather than
In fact, the term ‘food hall’ in its focusing too closely on which words
modern sense is not yet widely are used, we suggest that what is
recognised across Europe, where really important is understanding
the word ‘market’ (with its clear the underlying trend:
heritage of high quality, fresh
produce) is much more common. “diverse freshly-prepared
It is no accident that one of the
leading European operators
authentic food and drink,
(Time Out Group) has chosen to enjoyed communally!”
use that word in its title. However,
we believe that as concepts are
developed and refined over the
next few years, the use of the
term 'food hall' will increase.
4 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 5
Key
Trends
emand for European food
›› D
halls has been consumer-led
THE RISE
ravel-savvy younger generation
›› T
has been a key driver
uropean consumers have
›› E
AND RISE OF
become more engaged with food
through celebrity-chef culture
rtisanal and independent food
›› A
vendors are the bedrock of new
EUROPEAN FOOD
Food Halls
ourism has been an important
›› T
demand-generator – but
MARKETS/HALLS
establishing local custom
is crucial
ommunal eating has gone
›› C
from acceptable to desirable
well times are increasing –
›› D
but only if a diverse food
and drink offer is provided
igh quality food is a must –
›› H
The impressive gothic battlements that his venue’s success did not loyal local customer base, they were place. Regional cuisine, originally and value for money
of Castelo São Jorge, high above happen overnight (see Interview, largely invisible to a wider audience. based on the availability of fresh
Lisbon, give a stunning vista across p12) its rise in popularity has ingredients (markedly different perator income is often
›› O
the western-most city of the nevertheless been meteoric. That began to change with in southern Europe and northern based on drink sales
European mainland. Far below, And it is not an isolated case. the arrival of a new millennium. Europe, and similarly from west
ide variety of locations,
close to the water’s edge of the
Tagus estuary, Lisbon’s most
From Madrid to Oslo, wherever
similar food-related venues have
As early as 2000, markets like
La Boqueria, located off Barcelona’s
to east), has adapted to the
introduction of new foodstuffs
From Madrid to ›› W
from city centre to former
popular tourist destination is clearly opened their doors they have famous La Rambla tourist street, over time, while still maintaining Oslo, wherever industrial zones
similar food-
visible. This is not, as you might almost always been met with began to reinvent themselves and strong local culinary identities. As ost food halls/markets have
›› M
expect, a historic monument like a steady influx of visitors. attract interest from a new celebrity chefs rose in popularity reused existing spaces, but some
the castle itself, or even a modern
addition like the always-busy Traditional food markets are,
generation of tourists, residents
and office workers alike. Without
in most European countries, they
were quick to capitalise on their
related venues venues have been purpose-built
aquarium. It is instead Time Out of course, nothing new. They necessarily realising it at the time audiences’ appetite for food-related have opened their ocial media has been a key
›› S
tool for attracting customers
Market, a bustling collection have existed across the European they were responding to cultural knowledge.
of around 40 different high-quality mainland for centuries, often and demographic shifts. doors they have he European food hall sector
›› T
food vendors, grouped under
one roof.
building a reputation for providing
high-quality foodstuffs at Culturally, people were becoming
Demographically, younger people,
more mobile than any generation almost always is still in the early stages;
much more development is likely
reasonable prices. Yet towards more interested in all aspects before them and used to eating out
been met with
Attracting over 3 million visitors the end of the last century they of food – where it comes from, on their travels, began to frequent xperience is king – the
›› E
a year is no mean feat and while were often housed in dilapidated how it is produced and how it is restaurants and other eateries a steady influx atmosphere of a food hall
of visitors.
Time Out Market chief executive surroundings in unloved prepared – and as a result began to when back in their own country. can’t be replicated by on-line
Didier Souillat is quick to point out neighbourhoods. While they had a reconnect with their own sense of With higher disposable incomes, meal delivery
6 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 7
they were able to dine out more across Europe. It started in
often, but were also becoming Mediterranean countries, where
more demanding of the type and climate and culture encourage
quality of food they were offered. eating out, and in cities with
Flavours encountered abroad populations enthusiastic about food
began to appear on local menus as innovation. Yet the European food
part of an experience-led approach hall revolution has really only just
to eating out. begun, with many venues starting
to welcome visitors within the last
This younger generation was five years. 2014 was a landmark
also adept at sharing experiences year when around 10 venues
through social media. Food Hall opened their doors for
operators were quick to spot the the first time (see European Food
Country Profile promotional advantages of these Hall Round-Up, p. 36), including
Spain
digital communication channels. Mercado de Platea in Madrid,
The photogenic nature of high El Nacional in Barcelona and
quality food and drink meant that Copenhagen Street Food in
While the Spanish may not have operators have been able, often Copenhagen. More than 20
invented food markets, they have at very little cost, to build up large have opened since then.
certainly been responsible for shaping followings on Facebook, Twitter,
the trend of modern Food Halls. Instagram, Snapchat and other One of most striking things about
A total of eight are now trading online portals. the venues that have opened in
across the country, including two in Europe to date are how different
Barcelona, one in Bilbao and no less The emergence of new generation they are in so many respects. Some
than five in Madrid: La Paz (2003), food halls has not been uniform are centrally located, while others,
San Miguel (2009), San Anton (2011),
Platea (2014) and San Ildefonso (2014).
Madrid’s San Miguel has won many Country Profile
Sweden
plaudits for its innovative reuse of
a century-old wrought iron and glass
structure that is now home to 18 food
vendors. The privately-owned venue Europe has many cities which include a historic grand structure
has been hugely successful and has that was originally designed as a traditional food market.
been able to achieve record rents Stockholm is a prime example of a city which has taken
as a result. one of these buildings and reinvented it for the 21st century.
Östermalms Saluhall on Östermalmstorg in the city centre is
What is interesting about Madrid’s currently undergoing major refurbishment by its owner, the city
collection is that they are all different, council and the 6,000 sq. m food hall is due to reopen in 2018
ranging from the luxury feel of Platea (a temporary alternative has been provided nearby in the interim).
to the vibrant atmosphere of San
Anton, which is owned by the city A similar, but smaller, venue opened in southern Sweden in 2016.
council. Here visitors choose fresh Malmö Saluhall covers around 1,500 sq. m and is located in the
produce from stalls on the ground city centre. As in the Netherlands (see box p. 10), small food
floor, before taking their purchases halls are becoming popular in CBD locations. For example,
to be cooked to order by chefs in the food vendor Panini has brought together 10 other food providers
food units above on the second floor. at its 750 sq. m K25 scheme in central Stockholm.
8 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 9
Scheme Profile
Koszyki,
Country Profile
The
Warsaw,
Netherlands
Poland
The Netherlands’ first two new
generation food halls, both of Situated on Koszykowa road in
which opened in 2014, illustrate central Warsaw and now billed
very different approaches to as the Warsaw Crucible, the
the same broad concept. A building housing this food hall
group of hospitality operators originally started life as market,
created Amsterdam’s built in the Art Nouveau style
Foodhallen, a collection of early last century. But the
20 vendors, serving food within central part of the property
the huge De Hallen renovated was demolished in around
former tram depot (see 2009 as part of a failed
Interview, p. 20). attempt to redevelop the
one hectare site as housing.
In contrast, Rotterdam’s new-
build Markthal was designed Polish developer Griffin Real
from the start by developer Estate stepped in and bought
Provast as a mixed-use city the land in 2012. The historic
centre regeneration project entrance halls at both ends,
that includes a 96-stall ground like Oslo’s Mathallen, are part of Interview p. 20) venues have been Many have adopted business difficulty in securing food vendors which escaped demolition,
floor food market, surrounded wider regeneration initiatives for created by individuals or groups models that are based on the venue whose offer is to a high enough were renovated and the whole
by 20 shops and restaurants. former industrial areas. Some are of individuals, while the first operator running bar sales which standard. This remains a topical site redeveloped for a mix of
The combination of produce completely enclosed, while others generation of multiple food hall provide primary income, with a issue, though some operators uses including shops and an
and prepared food, together are partially outdoors, celebrating operators is emerging, including modest cut of the food vendors’ now report lengthy waiting lists art gallery, as well as space
with the striking architectural their connection with street Time Out Market and London takings (typically between 10 and for would-be chefs. for events, such as a weekly live
structure created by MVRDV markets. Some, like Rotterdam’s Union, owner of London’s Street 20%) adding a subsidiary revenue music gig. Pride of place
architects, has delivered a Markthal are purpose-built, while Feast venues (see Interview p. 32), stream. There is widespread The European food hall market is in the new 8,000 sq. m
destination that attracts and the majority have taken over spaces both of which have ambitious recognition that food prices should likely to experience unprecedented complex, which opened
retains up to seven million previously occupied by other users. growth plans. Pioneering brand offer value for money, so at present growth over the next few years. in 2016, is the collection
visitors each year. Some operators concentrate solely Eataly, which opened its first there is less variation in consumer Key themes for this period, and of around 20 food vendors,
on food and drink, while others venue in its native Italy in 2007 pricing than in the traditional the impact these will have on real who serve a wide range of
Smaller venues like have configured their space flexibly is considering further European restaurant sector. Food vendors estate owners, are examined cuisines from Palestinian
Rotterdam’s Fenix Food to allow for live music festivals and expansion after opening in are almost exclusively small, further on p. 16-21 & 28-33. The falafel to local specialities like
Factory and Amsterdam’s other types of performances and Moscow in 2017. Another venue independent traders. And all huge potential of the sector home-made grilled sausages.
Market 33, housing between cultural celebrations. is already in the pipeline in Paris, operators agree on one thing: that promises plenty of excitement. And, The scheme provides seating
three and nine food vendors, due to open in 2018. the quality of the food and drink like Lisbon, many more European for over 1,200 diners and
have become very popular, Street food is openly embraced should be first class. cities may well see their traditional three bars provide liquid
particularly at lunchtimes, in some venues, while others have There are also important similarities. tourist attractions vying for the refreshment, including a
when they draw in local office opted for a more upmarket, chef- Intensive use of social media Like any emerging sector, there top spot with this new generation very popular Bavarian-style
workers and tourists alike. led approach. In some cases, such (as noted earlier) to draw first-time have been teething problems. of food venues. beer hall.
as Amsterdam’s Foodhallen (see and repeat custom is universal. One of the most common is a
10 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 11
INTERVIEW
TIME OUT MARKET LISBON
With a track record that includes Turns out that was a very shrewd
successfully running food halls for global move, as Time Out Market Lisbon is
retail icons Harrods and Selfridges, as now the city’s top tourist attraction.
well as growing the Hakkasan restaurant Yes, we attracted over three million
group, Didier Souillat is widely respected visitors in 2016. When people ask if
across the industry. Now facing a new I’m surprised by how well Lisbon is
challenge, he tells us what moved a doing, I have to point out that it took just
publishing company to enter the food 18 months to achieve positive EBITDA.
and beverage sector, why size matters And I have no doubt that the fact tourist
to food hall operators, the importance visits to the city as a whole rose by 13%
of curating a mix of food operators to last year also gave us a helping hand.
generate repeat business and discloses
which vegetable he absolutely
won’t touch.
For us it is all about
Didier Souillat How do you sum up Time Out
Chief Executive, Market to people who don’t know it? the mix, appealing
Time Out Market It is a food and cultural market, based on
editorial curation – that’s what makes
to 7 and 77-year
it different. olds alike – that’s
Different in what sense? what creates repeat the reasons for that is that since we are posting pictures of incredible food
The market is a physical representation
of what Time Out magazine and its digital
business. opened in Lisbon in 2014, we have
actually changed only a few operators.
served on proper china Time Out
branded plates.
equivalent is, which gives the company We suspect some artful management
a 360-degree view of the market. also played a large role. How does
your business model work?
How important are the types
of food are on offer?
The only operators Lisbon was the first. Now other Time
Out Markets are in the pipeline.
So, in a way this was We run the beverages side and hire third For us it is all about the mix, appealing who will survive In 2016, we’ve said our aim is to open in
a natural progression? parties to look after security and to 7 and 77-year olds alike – five global cities within five years. Lisbon
Yes, Time Out is a hugely well-known cleaning. Basically, we provide that’s what creates repeat business. are those with is already open and we have four more in
brand, originally for the magazines and
now increasingly on its digital platform.
everything that allows the chefs
to concentrate on what they excel at
The communal aspect is also important.
Being able to eat democratically,
authority. the pipeline. Miami, USA and Porto,
Portugal are both scheduled to start
It allows us to directly be in touch with
our readers.
and what they love to do - cook. We then
take a percentage of their takings.
and still enjoy good quality food.
Operators who trading in 2018, with Boston, USA
following in 2019. Our plans for London,
And we’d hazard a guess that a digital are too small UK have been turned down by planners,
That makes sense, though we The fact that the market is curated publisher was quick to use social
will become
but, with the landlord’s support, we are
wouldn’t have guessed you would suggests an active management style. media to the max. appealing that decision. However, we
choose Lisbon for your first venue.
To be fair the decision to start in
To be able to move fast and change
quickly you constantly need to pay
The best PR we have is people from
abroad, like the UK and France, visiting
obsolete and can’t say how long that will take.
Lisbon was essentially opportunistic – attention. Our food operators all trade the Lisbon market more than once. Their disappear. Difficulties in London aside, where
the landlord wanted a tenant and the under one-year renewable licences and use of social media and word of mouth might the company head to next?
local Time Out editor made a bid. we have a very long waiting list. One of is super-important to us. Every day they We will consider new global destinations.
12 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 13
Quick Questions
DIDIER SOUILLAT
FAVOURITE FOOD HALLS:
Hawker Centres, Singapore
(for the smells).
Depachika (department store
basement food halls), Tokyo
(for the visual impact).
FAVOURITE MEAL:
Japanese – it’s always
about quality and looks,
plus its healthy.
FOOD YOU’D BUY
ON A MARKET STALL:
Spices – anything that reminds
me of the South of France.
FOOD DISLIKE:
Beetroot – everything
about it!
So far it has certainly been easier for us Large sites tend to be outside the not just as revenue driver and take into
to do business in the USA! Wherever we city centre. Are you OK with that? account the impact of everything around RATE YOURSELF AS A HOME
go, it has got to be a foodie city – there’s If you want to be open seven days a week, us. And because our food vendors operate COOK (WHERE 1 = DANGER
no point otherwise. We’re all about
serious food and known chefs. We need
you need to be central – it’s as simple
as that. I admit that finding 2,000-
We are finding with significantly lower overheads that
makes it interesting for everyone. The
TO PUBLIC HEALTH AND 10 =
CELEBRITY CHEF STATUS):
tourists, but we also need people who 3,000 sq. m in a central area can be that landlords can price point needs to be reasonable for 8/10 probably – depends
consider us as a
live and work in that city. difficult, but you need to be where people the consumer and we believe high quality what’s in the fridge
can find you easily and after all, Time Out doesn’t have to be mean high cost. (Lesser-known fact: Didier
If you are targeting a lot of people,
that means the venue needs to be
is a brand that is all about making the
most of the city. Street food can be
footfall generator, You won’t be drawn on which cities
is a classically-trained chef).
reasonably large. anywhere, however serious food can’t not just as revenue are next on your hit list, so how do FAVOURITE
The only operators who will survive are just be destination-led, it needs to be you view Europe as a whole? EUROPEAN CITY:
those with authority. For us that means in a communal place. driver, and take into It has very good prospects for the next This is really difficult as
having a minimum of 15 vendors and a
floorspace of 2,000-3,000 sq. m. Food Central sites are certainly accessible.
account the impact few years. Portugal is just the beginning.
There will always be demand from
I travel so much and see
so many new exciting places
hall operators who are too small and not
on top of their game when it comes to
However, they usually come with
a much higher price tag.
of everything people who want to eat good quality
sfood together.
all the time. OK, I have to go
with Lisbon – it’s pretty cool
quality of food will become obsolete Yes, but we are finding that landlords around us. and looks good.
and disappear. can consider us as a footfall generator, www. timeoutmarket. com
14 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 15
find that they have a receptive
Key
audience already on their doorstep.
Trends
This well-travelled customer base of
young people is particularly
switched on to the food culture
issues mentioned above – ethical
onsumer interest in food is a
›› C
production, provenance and
EUROPEAN
long-term trend - it's here to stay
sustainability are significant factors
affecting their decision on where ating out is set to increase
›› E
and what to eat. New generation in many European countries
food halls, with their inclination
FOOD HALLS
towards independent food vendors emand will come from tourists,
›› D
office workers and local residents
and suppliers, can adapt easily
and quickly to the latest consumer
iners are looking for
›› D
Part 1
demands. unique experiences…
RISE OF THE FOOD and plenty of choice
›› …
& BEVERAGE SECTOR
Oxford Economics figures show ood offers will need to change
›› F
While the development of new below the most significant of these produced food, including top that eating out is on the increase. regularly to remain current
generation food halls across Europe from a commercial real estate quality, local ingredients with a Average annual growth of
op quality, ethically-sourced
›› T
may no longer be described as perspective, along with some of the clear provenance, built into their consumer spending on eating out
food with a clear provenance
embryonic, it is most certainly still in challenges which may arise. DNA as standard. in Europe ran at over 4% in the
is non-negotiable
the early stages. We estimate there decade to 2016. In the short term,
are approximately 100 food halls One factor cannot be overstated: DEMOGRAPHIC SHIFTS food halls will enjoy a grace period ocial media will be a key
›› S
either already open or currently the success of individual food halls People are travelling more than as consumers flock to enjoy their technology for attracting
under construction in Europe’s will be directly related to the ability ever before and the overall number novelty value. The most successful and driving footfall
major cities. of their operators to quickly and
accurately identify and react to the
continues to rise. The impact of
this on food halls is two-fold. In
venues will be those that manage
to capture that interest on an
From Madrid to ood Halls are likely to
›› F
Our research suggests that the rapidly changing trends influencing the short term, travellers are on-going basis, particularly in Oslo, wherever become integrated into wider
developments, including
potential for growth is huge. At their customer base. increasingly attracted to food the longer-term, as traditional
least 200 venues, totalling over destinations. Operators have restaurants may begin to actively similar food- shopping centres, public
realm improvements and
related venues
400,000 sq. m, are in the pipeline FOOD CULTURE expressed surprise at the number compete for their custom.
transport hubs
for delivery within the next decade The demand for new generation of tourists heading in their direction.
in cities including London and
Paris (see City Profiles below).
food halls is no fad. It is a long-term
trend. The interest from consumers Longer-term, when travellers
MACRO-ECONOMIC FACTORS
The European economy is currently
have opened their ocation will be important,
›› L
but curation of the space
That number could increase in how their food is sourced and return to their home (or adopted) slightly outperforming many doors they have will be more so
almost always
substantially if food halls become produced has quickly become countries, they are likely to continue economists’ forecasts. However,
integrated into existing buildings. embedded into many national to seek out the food-related the health of national economies here will be failures, but…
›› T
How quickly these new food halls
cultures across Europe. Celebrity
chefs may come and go, but the
experiences they enjoyed on their
travels locally. This is particularly
varies considerably throughout
the continent and the present low
been met with ›› ...visionaries will be rewarded –
what seems implausible
will appear and what form they interest they generate in food will relevant to food halls sharing space volatility levels are no guarantees a steady influx today could be tomorrow’s
are likely to take will depend on a be a constant. Food halls should with other uses (for example, within for the future. Conventional wisdom
of visitors.
NBG (Next Big Thing)
large number of factors. We outline have a diverse offer of ethically- shopping centres), who may well on the impact of economic shocks
16 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 17
City Profile
TECH
London
TRENDS
Only five years ago there were no
new generation food halls in To what extent technology will disrupt
London. The arrival of Street Feast the future food hall environment is an
began a process of change that is intriguing, and largely unknown, prospect.
steadily gaining momentum. Current systems like digital food ordering
Now under the umbrella of London and order management will have an
Union (see Interview p. 32) Street obvious place, for those who wish to use
Feast currently operates at four them. Interactive apps that allow users to
sites across the capital and has choose and pay for their food beforehand
several more in the pipeline. Its and have it presented to them when they
latest venue opens in late November arrive at the venue are equally possible.
2017 as part of the Winterville But, given that human interaction, with
temporary festival site on Clapham fellow diners or food vendors themselves,
Common, south London. is an important part of the food hall
Both London Union and Time experience, automation such as robo-
Out Market have attempted to cooks or robot baristas may well be
secure and open large venues in limited.
former market buildings on the However, social media platforms
eastern edge of the City of London have been enthusiastically adopted
at Smithfield and Spitalfields on consumer spending says withstand challenging economic the food halls which have opened being slightly off the beaten track by operators, where they play a crucial
respectively and both have been consumers will spend less. However, headwinds. to date (including Time Out Market could be a positive advantage, as role in marketing. Shopping centre
frustrated by planning or land the experience of the last global Lisbon) have successfully traded food-loving locals and tourists alike landlords and others who already have
ownership issues. However, the fact financial crisis was that although total Even in relatively positive economic from more peripheral locations and seek out less mainstream venues. sophisticated social media architecture
that these groups are keen to open consumer spending fell, it was times the operators of modern have become destinations in their in place will be able to deploy it
up large amounts of space in the big-ticket items (such as foreign European food halls have been own right. BUILDING TYPE effectively with any food hall operation
capital demonstrates how far the holidays or large furniture purchases) keen to ensure that their venues The majority of new generation they choose to incorporate within their
sector has come in a short space that were hit hardest. Leisure deliver high quality food at While central locations will food halls in Europe are housed scheme.
of time. activities were less affected as affordable prices. This focus on undoubtedly benefit from better in second-hand structures. Some
And with more than 16 food consumers opted to spend their excellent value is therefore likely transport connections, equating of these are historic market halls
halls proposed, there is potential limited out-goings on what they to remain a constant, whatever the to a potentially higher footfall, (like Stockholm’s Östermalms rather than the other way round.
for new food halls in the city like perceived to be affordable luxuries. prevailing economic conditions. food halls which are situated in Saluhall) re-purposed for a slightly And in large-scale urban
never before. As the sector becomes Eating out was one of those luxuries. other areas will not necessarily different role, but many are existing regeneration projects building
more competitive each venue is LOCATION find themselves at a disadvantage. buildings that have been given in a food hall from scratch could
increasingly likely to focus on Food halls which can swiftly Some operators, like Time Out As existing operators have already a new lease of life. We believe prove to be an attractive option
differentiation and how it can concentrate their attention on Market (see Interview p. 12), found, their customers are that as the food hall concept for landlords and food hall
develop one or more USPs to a certain visitor segment (for are targeting central locations a persistent and passionate evolves, new-build properties operators alike.
allow it to maintain or grow its example, local residents) if another as they believe this will deliver them crowd, so as long as the venue will become more common,
market share. segment (such as tourist visitors) the greatest number of both tourist is adequately marketed it should be not least because the space
is affected will be best-placed to and local visitors. However, some of well-patronised. In future, can be designed for its operator,
18 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 19look for them. The idea was new to a lot
of people, and they were quite frankly
INTERVIEW hesitant, as they weren’t sure it would be
FOODHALLEN
a successful concept. Now we have a total
of 20 venders operating within the 1,200
sq. m Foodhallen. Additionally, we have a
pop-up vendor, that changes every few
Serendipity played a large part in months. We considered adding more food
the creation of the first indoor food vendors, within the same total floor area,
market in the Netherlands. But trained but we’re happy with it the way it is now
restaurateur and co-founder of and expect it to remain unchanged over
Amsterdam’s Foodhallen Chong Chu, the coming years.
hasn’t looked back since his venue
opened its doors in late 2014. Here he How vital to your business
tells us why location is paramount, is the mix of food vendors?
explains the importance of maintaining People get bored really, really fast.
an eclectic mix of food vendors and This means you need to go along with
reveals why he doesn’t rate himself trends and serve things people want to
as a home cook. eat – at the moment it is all about healthy
food served quickly. It’s important to
How do you sum up Foodhallen have different and, ideally, unique
to people who don’t know it? concepts. The combination of vendors is
Chong Chu We describe it as a social concept where very important. It’s no good having three
Co-Founder, you can have good food and drink or just burger providers and two hotdog traders
Foodhallen, Amsterdam grab a quick bite. It’s like a street festival, next to each other. We specifically avoid
but permanent. major chains. In any case, we find it
easier to attract people who are based
Is it true that the idea for Foodhallen locally. Unlike the early days, we now
came about purely by chance? have vendors approaching us. We
Yes, absolutely. We were on holiday in currently have around 50 vendors on our
Spain and happened to visit Madrid’s waiting list.
Mercado de San Miguel (see p. 48).
My first thought was: ‘This is a genius That’s a good problem to have!
idea’. My second was: ‘Why hasn’t anyone We believe that if we’d opened in a How does your business model work?
done this in Amsterdam already?’ brand-new building it just wouldn’t We own all the bars (a main bar, plus
have worked, as everything would have speciality satellite bars for beer, wine and
How long did it take to turn that been too new and what it actually needs People get bored gin) and the revenue from those is our
really, really fast.
spark of an idea into reality? is a rough edge. When we saw De Hallen main income. We also take a 10% share
In total it took around two years to (The Halls), a listed 22,000 sq. m former of food vendor takings. They sign a
refine the concept, as we were fitting
the new venture around our day jobs.
tram depot complex, we knew we’d found
a perfect fit. The local authority was quite
That means you two-year contract with us, at the end of
which we review their performance
First, we honed the idea, then we worked co-operative and the neighbours were need to go along and development prospects. So far
Photo: ©Ossip van Duivenbode
up a business plan and finally we were really supportive – they didn’t want we’ve only changed eight vendors
ready to look for a venue. a nightclub there instead and they saw with trends and (excluding the pop-up operators).
Did you have a specific building
the potential of what we wanted to do.
serve things people Describe a typical Foodhallen
or area in mind?
We always thought we needed to start in
How easy was it to bring
in food vendors?
want to see. visitor for us please.
We estimate that we now attract around
Amsterdam. Location is very important. In the beginning we had to go out and 700,000 people annually. In the summer
20 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 21We’re already talking to shopping
centre developers. The vibe would
be totally different, but we think Quick Questions
we could make it work. CHONG CHU
FAVOURITE FOOD HALLS:
Mercado San Miguel, Madrid
(the building is really special
season we believe that roughly three- abroad, to do something similar in cities and the place has a great
quarters of our visitors are tourists, like Berlin and Paris. For us it’s too early ambience).
though the proportion of locals goes up to to go outside the Netherlands. In the last
around 40% over the winter. Locals stay three years we’ve seen growth, both for Borough Market, London
longer (on average three hours) and Foodhallen as a company and the (I like the mix of retail
spend more on drinks, while tourists individual vendors. I’m amazed that and eating).
tend to come by for a quick lunch and there is still growth after all this time.
spend less, but there are more of them, FAVOURITE MEAL:
so it balances out. Lunchtime (midday We might see more Foodhallen Love all Italian food,
to 15:00h) is always busy, as is the across the Netherlands though… plus Asian concepts.
evening (19:00h to closing). The food We have looked, but nothing has been
vendors are obligated to remain open decided for now. We would consider FOOD YOU’D BUY
until 22:00h; after that, it’s up to them. larger cities like Rotterdam, Utrecht and ON A MARKET STALL:
Maastricht. I’m not sure if it will happen, Fresh and dried sausages.
And how do you interact with them? but then again if we find something
We use a mixture of marketing tools. suitable we could go for it very quickly. FOOD DISLIKE:
We’re in a number of travel guides, Nothing I don’t like – I like
work with the city’s tourist promotion And what about a Foodhallen to try out and experience
agency ‘i Amsterdam’, various websites in a shopping centre? lots of things.
and travel bloggers and of course do We’re already talking to shopping centre
plenty on social media. developers. The vibe would be totally RATE YOURSELF AS A HOME
different, of course, but we think we COOK (WHERE 1 = DANGER
What elements of your venue could make it work. The key issue for TO PUBLIC HEALTH AND 10
do you think generate repeat us is how we retain our independence. = CELEBRITY CHEF STATUS):
Photo: © Daria Scagliola/Stijn Brakkee
business for you? 2/10 (I’m really not fond of
It’s a great social environment. People How do you see Foodhallen cooking – when I do, it’s a
like the atmosphere and the temporary evolving by 2020? simple pasta dish for the kids).
events. Foodhallen simulates a food For the coming years it won’t change
festival, but has the advantage that it’s a lot – but we need to keep looking at FAVOURITE EUROPEAN
always there. trends, be flexible and able to change CITY: Paris – I lived there for
and adapt to demand. six months and it feels a bit
So, what’s next for Foodhallen? like a second home
We get a lot of people asking us to go www. foodhallen. nl
22 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 23INTERVIEW
AVROKO
An accomplished design director, understanding was critical for me when
Tom Chalmers has extensive experience trying to transport the DNA of the
in the hospitality and food and beverage market to a new venue. I spent six
sectors across the globe. He has worked months working closely with the
for big name firms like Skidmore Owings scheme architect ISA.
& Merrill, Grimshaw and Gensler, as well
as boutique practices. After an extended What struck you most about the
period living abroad Tom has returned Lisbon operation and what challenges
to the UK. Here he tells us of his did you identify in transferring its
impressions of food halls in the United essence elsewhere in Europe?
States, suggests what factors will transfer Time Out Market is pretty high end,
well from Mediterranean food markets to
other parts of Europe and admits which
food he’ll only consider after a heavy
night out.
Tom Chalmers In northern
Managing Director, You moved back to the UK with your
AvroKO family from the United States nearly Europe the space
two years ago. What prompted
the move? needs to be heavily
I was working on Timber Cove Inn,
Sonoma County, California and by chance
conditioned.
met one of AvroKO’s four partners. We Controlling the
just got chatting and I mentioned I was
considering relocating and he mentioned atmosphere is quite
the firm wanted to set up a London office.
It was good timing.
complex – but it’s
very important
And the London office has been up
and running for 18 months now. for customer
What have you been up to?
One of the first projects I got stuck into experience.
was Time Out Market London at
Spitalfields (see p. 45) with proper dishes, cutlery and wine
glasses and a very clean environment.
Were you familiar with The cooking academy is very popular.
the first market in Lisbon? All of those kinds of things can be
I’d obviously heard about it, but I then transported quite easily. In fact,
spent quite a bit of time at Time Out I’d say 9. 5 things of 10 can be moved.
Market Lisbon, so that I could really The remainder are factors like customer
get to know how the space is organised mindset – that can be very different.
and the ethos of the place. That But the biggest hurdle is the climate.
24 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 25In Lisbon it is pretty warm and sunny And now you’re back in London,
all year round. However, in northern where do plan to take the business?
Europe the space needs to be heavily
conditioned. Controlling the atmosphere
Maintaining I’ve already grown the office from one
to seven people. Right now I’m working
is quite complex – but it’s very important a contextual on a venue due to open in London next
for customer experience. year and have just started on a project
reference from in Warsaw. While I was out there I
And what else have you been
working on? history is crucial. discovered a food hall with a great local
menu, wide selection of dishes and easy
A cool members’ club in London,
a cosmetics brand interior, and a major
The key is to access to beverages. You can move with
your food and drink anywhere within
mixed-use redevelopment taking place tap into peoples the venue so you can really experience
in Auckland, New Zealand. Plus, we’ve it properly.
just finished on China Live, a 2,000 sq. m emotional needs
Chinese food hall in San Francisco, USA.
– and that’s going Any other food hall experiences
that are relevant?
Quick Questions
TOM CHALMERS
Having lived in the United States to be different for Some time ago I was involved in a hotel
until recently you must have project in Melbourne, Australia, and
witnessed first-hand the fast-paced tourists and locals. spent some time there. I was struck by FAVOURITE FOOD HALL:
growth of the food hall scene there. their very modern interpretation of Depachika (department store
When I first went to Gotham West Market, food halls (not to detract from historic basement food halls), Tokyo,
New York, it changed the paradigm a bit for examples across Europe), but I was which is mindblowing, because
me – all the cool kids were under one roof. bowled over by the acoustics, smells of the sheer array of offers.
The design was fantastic. I remember and the overall atmosphere.
thinking: wow – what a different FAVOURITE MEAL:
experience (I should mention that Those experiences must be invaluable Mediterranean food – I’m a
although it was designed by AvroKO, for you on projects going forward. sucker for fresh fish and salad.
I wasn’t working there at that time). I’ve been approached by developers
Then when Eataly opened in New York, involved in the many food markets FOOD YOU’D BUY
that was truly eye-opening. There were planned in London. From my ON A MARKET STALL:
independent operators going into these perspective, I’m keen to get in the door Fish or meat – especially tuna
spaces, which had never happened before. early enough to really influence the
finish, as historically interior design is
It’s important for me to have a valid input or any freshwater fish.
If you’ll pardon the pun, what are the
key take-aways from those food halls
brought into a project quite late. into massing – how moving through the FOOD DISLIKE:
Greasy fried food – maybe OK
that could be instructive for those What can you bring to a food hall space emotionally affects people. for a hangover, but still messy.
creating similar venues in Europe? project by being involved early on?
Ha, ha, well good service is something we If you want to create a great historic RATE YOURSELF AS A HOME
can always learn from. The food halls environment you need to expand or for temporary events. Addressing Market in London is so popular – it gives COOK (WHERE 1 = DANGER
there are very attentive and customer- compress the space. It’s important for me different operational needs is also crucial you a bit of London. The key is to tap into TO PUBLIC HEALTH AND 10
driven. It important to transfer that to have a valid input into massing – how – creating an intimate environment for people's emotional needs – and that’s = CELEBRITY CHEF STATUS):
across. moving through the space emotionally breakfast, but conversely ensuring the going to be different for tourists and 6. 5/10 – I have my moments!
affects people. space doesn’t feel cramped at lunchtimes locals. Tourists are becoming more
What took you to the US originally? and evenings. educated about food and beverage and FAVOURITE
My family moved there just as I was And what are the key design aspects want a heightened local offering. So, in EUROPEAN CITY:
finishing studying interior design at when creating a new food hall? Can you identify a key ingredient for Spain, for example, instead of paella they Seville – I have family there;
university. I was lucky to land an Adaptability is really important – how a making a food hall successful? want seafood, but with a Japanese twist. it’s a very honest place with
internship with Skidmore as soon venue changes – spatially, acoustically, Maintaining a contextual reference from a great heritage.
as I arrived stateside. lighting – over the day and how it changes history is crucial. That’s why Borough www. avroko. com
26 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 27City Profile
Paris
As a world-renowned capital
EUROPEAN
of gastronomy, with a tastebud-
tingling array of restaurants
and traditional food markets it
is perhaps less surprising that
FOOD HALLS
Paris has so far seen relatively little
activity from new generation food
hall operators. Although La Grande
Part 2
Epicerie, the French equivalent
of Harrods food hall, has been
modernised since it opened in
1978, it remains focused largely
on gourmet produce.
SIZE is divided into just four food zones, and positioning of seating areas are gifted innovators will be hint of homogeneity. However, things are about
An important part of the draw of a suggests that alternative practices must be carefully judged, particularly valuable to operators as to change for Parisians and Paris-
food hall is the variety of food on are feasible. as it is a crucial consideration they will be able to create new BUSINESS MODEL bound travellers alike. Italian
offer. How that variety is translated when communal dining is such an dishes to maintain interest. This Larger operators who typically lease operator Eataly, which now has
into the number of food vendors is Larger operators like Time Out important part of the experience. will be easier for operators than a whole venue and then 20 venues in Italy, as well as others
currently a matter for debate. Market and London Union are Design experts (see Interview p. 24) physically changing their vendor assign pitch licences to food worldwide (see European Food Hall
Operators of larger halls suggest typically considering sites of brought into a project at an early line-up. This may explain why vendors have found that operating Directory, p. 47), is due to open a
that 15 food vendors is a minimum between 1,500 sq. m and 2,500 sq. stage can advise on how to optimise although many current operators the bar sales themselves and taking 4,000 sq. m outlet on the city’s
– without a critical mass they m, but the venues that have opened customer flows and interaction. typically offer short-term licences only a small slice of vendor takings historic Marais district on Rue
suggest venues will struggle to across Europe so far have fitted into (one to two years for established allows them to run the business Sainte Croix de la Bretonnerie in
survive. However, we believe that a wide range of floorplate sizes. In FOOD VENDORS cooks) there has been remarkably profitably. In this model individual 2018.
size is related to the local market. In future we suggest that just as a Whether celebrity chefs or little churn. vendors may be restricted from Also due to open in 2018
smaller cities, or districts of big select number of food vendors can passionate street food cooks are selling drinks as the food hall is Franco-Belgian developer
cities, a venue with fewer than 10 still be viable, smaller size in charge of the kitchen, the key A potential challenge for operators, operator drives footfall to its Bannimo’s Gare du Sud scheme.
vendors could be successful if floorplates, particularly for food halls expectation from European food as food halls become more own bars. This often represents the A 420 sq. m food hall will be
correctly positioned, as Altrincham which are part of larger schemes, hall visitors is always the same: widespread, is how to secure top operator’s primary income stream. incorporated in the 3,000 sq. m
Market House on the edge of could work equally well. top-quality food. However, food quality chefs. And as branded redevelopment of the city’s
Manchester (nine food vendors in excellence is just the start. chains is anathema to food hall We think this model is likely to former southern railway station.
400 sq. m) demonstrates. Although While there is obviously a link Consumers expectations for new consumers, operators of multiple become common (if not universal)
it employs 200 staff, the fact that between the number of vendors and and unique flavours and textures venues may well have to find ways as the sector develops in Europe.
El Nacional in Barcelona (see p. 39) floorspace occupied, the amount are high. Food vendors who of scaling vendors that avoid any The template also works for
28 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 29retail and leisure uses moves steadily
towards the latter.
Care will need to be taken to create
the right kind of environment for the
emerging generation of food-
conscious consumers and good
design will play a large role in this.
We do not believe that retro-fitting
a food hall in vacant retail space
will typically work. These are major
space users and need bespoke
environments to be truly successful.
Landlords (of shopping centres or
any other use type that is proposing
to share space with a modern food
landlords who take on the role of maintaining good relations with hall) will probably choose to lease
of operator. We have seen that local communities from an early the operation to a third party or
drinks-led sales are increasingly stage. Similarly, for future large- employ an experienced individual
important in food halls, where their scale urban regeneration projects, in a management contract-type
availability increases dwell-time and landlords/developers would be arrangement. Top-performing
therefore spend. well advised to calculate and food halls will need active and
highlight to the relevant planning constant curation to ensure that
US
has been home-grown. New York remains at the forefront PLANNING authority the considerable the mix of vendors, menus and
What is particularly instructive about of this movement, with over 30 food As many new generation European economic benefits a food hall can additional offers is optimum
TRENDS
the US experience is the willingness to halls already operating and at least food halls have inhabited renovated bring. at all times.
adapt the concept as a partner use within 15 more in the pipeline (either under buildings in regeneration areas
shopping centres. Unlike in Europe (see construction or planned) by 2019. operators have generally found that INTEGRATION WITH MIXED- EXPECT THE UNEXPECTED
Definition, p. 4) the term ‘food hall’ was However, the trend is taking off across the local authorities have been USE SCHEMES, INCLUDING As the European food hall journey
Inspired by European upscale food until recently synonymous with ‘food US beyond just global gateway cities to supportive and in some cases local SHOPPING CENTRES AND has only just begun, it is possible
markets, operators in the US, not only ran court’. These functional food spaces with secondary and tertiary markets as diverse communities have also added their LEISURE EXTENSIONS that unforeseen twists and turns
with the idea but turned it into their own. a homogenised line-up of chain fast-food as Salt Lake City, Utah and Boise, Idaho. voice (as in Amsterdam’s Existing food hall operators will present themselves over the
With a similar demographic background to operators had been a US shopping centre While there were just over 100 active food Foodhallen, see Interview p. 20). report that they have already coming years. These could be to
Europe (a rise in food appreciation as a staple for decades. So, the arrival of hall projects in existence throughout the However, not all operators have had had discussions with developers the benefit or detriment of the
cultural trend and an enthusiastic independent food vendors, providing fast, US one year ago, there are now close to positive experiences. For example, about incorporating their concept sector. Landlords and operators
millennial generation leading the throng yet cooked to order, meals in bespoke- 200 in operation. Between projects Time Out Market’s plans for a venue into future shopping centres. who can not only spot trends as
of potential customers) the US market was design settings was almost revolutionary. currently under construction and those next to the historic Spitalfields Some are convinced that their they are breaking, but can also
well-positioned to respond to the food hall Schemes like Gotham West Market that have been proposed, it is entirely Market in London have stalled due model could transition effectively. anticipate the future demands of an
revolution. Although European operators in New York (1,000 sq. m) and Revival within the realm of possibility that there to planning and licensing issues. We agree, as the US experience (see ever-demanding customer base, will
have a foothold in the US market – Eataly in Chicago (2,400 sq. m) have been may be as many as 400 food hall projects box p. 30) suggests, that food be best placed to take advantage of
got on board in 2010 and Time Out Market enthusiastically received by consumers open in the US by 2019. Whether such experiences prove to halls could play an important part one of the leisure and hospitality
has two schemes due to open in the US in and a growing band of tourist be isolated cases remain to be seen, in the tenant mix of future shopping industry’s most exciting trends.
the next two years – much development visitors alike. but they highlight the importance centres, as the balance between
30 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 31INTERVIEW
LONDON UNION
City lawyer turned bar operator and Market (currently a dilapidated historic
restaurateur Jonathan Downey has built building in central London) would be
up London’s popular Street Feast food perfect for this. It would be a tragedy if
market brand across multiple venues in Smithfield becomes just a museum rather
the city. In 2015, he teamed up with than a thriving food market as well, that
Henry Dimbleby, co-founder of could bring 9-12 million visitors to that
successful UK restaurant chain LEON, area – it would change the reputation and
to form parent company London Union to centre of gravity of London.
further develop the food market business.
Here Jonathan tells us what he makes It would also be much bigger
of modern American food halls, why than anything you’ve done to date.
London Union is looking for longer-term What is your preferred size for new
commitments from landlords, what venues (apart from Smithfield)?
'terraforming' means and reveals which Yes, Smithfield could be up to 10, 000 sq.
alcoholic beverage he just doesn’t get. m. Dinerama (Street Feast’s most
Jonathan Downey well-known venue) is 1,800 sq. m,
CEO and Co-Founder, How do you sum up Street Feast including mezzanine space; Hawker
London Union to people who don’t know it? House, Canada Water is 3,000 sq. m
We call our venues ‘street food night inside and 1,500 sq. m outside, while
markets’ and ‘street food arenas’. Giant Robot, Canary Wharf is just 1,000 Keeping it fresh and new seems Assuming you have a full
We’re doing something that no-one sq. m. I’m not sure we’d do that again, to be an important part of the complement of food vendors, how
else is doing at the moment. We don’t as now we’re not looking at anything food market scene. does your business make money?
call them food halls though – that’s less than 1,500 sq. m and ideally, Millennials are always looking for the Three ways: we run all the bars, we get We’d like to take
a very American term and tends to
belong mostly to the daytime.
something around 2,500-4,000 sq. m. next thing. Things become old after three
or four years. So our food vendors start
a 10-20% share of vendor takings and we
have a modest door charge after 19:00h, over (food and
So, you’re familiar with the huge
Some people associate Street Feast
with edgy locations and are surprised
with a six-week trial, then move onto
a three-month licence and a rolling
though that’s mainly to filter out time
wasters. It’s a strong business model,
beverage) space
growth of food halls in North America? to find one in the shiny surroundings licence after that. based on high margins and low in office buildings –
Oh yeah, some of them are gigantic and of Canary Wharf. staff costs.
really impressive. Places like Revival, We went to Canary Wharf because But only if they cut the the beauty of what
Chicago; Reading Terminal, Philadelphia;
Ponce City, Atlanta and Grand Central
we were offered a very special space.
It always makes a difference to me if
mustard with you presumably?
Actually, finding enough good quality
Yet you can invest large sums
in what are temporary spaces.
we do is that we
Terminal, Los Angeles. a landlord is keen and supportive like people on the food side is a real challenge Yes, we’ll have spent nearly £1 million can rotate the
Canary Wharf Group were. In fact, at the moment. We had a golden at Hawker House over two years and
Wow, you get around and certainly we’re keen to do more like it and take generation who have now moved on just about broken even. That doesn’t offer and keep it
know your US food halls! Could
‘big’ work in London, too?
over some of the larger and more
traditional food & beverage spaces
to bricks and mortar. The thing is, the
concept doesn’t even have to be new, it
make much sense on the face of it,
which is why we aren’t going to do fresh and new.
Definitely and I would love to do a mega in office buildings – the beauty of just needs to be consistently good. There two-year pop-ups any more. We’re
food market in London. It’s well known what we do is that we can rotate is definitely room for someone who can now looking for longer-term leases,
that we have suggested that Smithfield the offer and keep it fresh and new. produce brilliant burgers, for example. with a minimum of five years.
32 CUSHMAN & WAKEFIELD FOOD HALLS OF EUROPE 33You can also read
