Food hall vs food court

The first thing to be clear about is that a food hall is entirely different from a food court. In a court, it’s about quickly satisfying hunger, he explained. The food court was created in order to stop people leaving the shopping centre. It exists “largely in order to keep shoppers shopping, not as a destination in its own right.” A food hall, on the other hand, is “a collection of passionate street food vendors in a social dining atmosphere,” acting as anchors for mixed-use or retail projects. It’s a social dining and drinking affair. In a court there’s rarely alcohol available, in a hall there always is. A court is all about fast food whereas in a hall it’s about international street food. A court has around six to ten units of between 40 – 200 sqm each, while a hall has between 10 – 22 units of between 10 – 20 sqm. While in the former, operations are easy, in the latter they tend to be more difficult and expensive, requiring skilled operators as opposed to central management. The contrasts are significant and financial considerations are always the bottom line.

They all have something in common, though. “Food halls tend to do well inside renovated schemes simply because of the atmosphere” – another reason Warsaw fares so well in its food halls. Yet the main reason a food hall is successful – other than the food – is the human factor. “It’s all about the people!” asserted John. “Food halls are not only for “hipsters with tattoos”. When a food hall recently opened, it was mainly families who turned up. One family man told him: “Just because I have kids doesn’t mean I want to stop coming to cool places.”

In terms of trends, what factors can increase a food hall’s chances of success? One is fairs. In Elektrownia, restaurant turnover goes up by about 40% whenever there is a slow fair or vintage fair. Another is active participation. The younger generation needs a reason to put down their phones. In terms of risks, John mentioned three things: lack of innovation, risk of oversupply (in the future), and the danger of complacency– of forgetting why food halls are successful.

Stara Rzeźnia – Creating a new city-center community hub

Stara Rzeźnia is Vastint Poland’s upcoming mixed-use project in Poznań, where the food hall will be its highlight.  Rafał Przybył, Regional Manager at Vastint Poland, presented the project asserting that the food hall in the scheme is primarily there to increase the value of the project – which the company believes that it will, primarily due to the historic nature of the food hall area being a former slaughter house built at the beginning of the 1900’s. When it was originally built it was on the outskirts of the city. Now it is downtown. The location is excellent. There are 16,000 sqm of historical buildings that need to be preserved, while also being supplemented with new buildings, including residential and office. “Right from the beginning we decided to place a lot of importance on the cultural element,” he said, adding that the place is already known for cultural activities. The scheme, he said, is for everyone – the local community and visitors to the city. The food hall will be the anchor of the project and will help to increase the asset value and the value of all other elements, for example the residential part.

Success factors, risks and opportunities

John referenced Hala Koszyki – Globalworth’s scheme – saying that it had been the most challenging food hall project because it was the first, with food operators originally saying that there was no way they were going to pay those rents, “and then the place opened, and they were begging to get a space there.” His question to Barbara Wojcik was about how the scheme had managed to keep its position as a market leader despite the arrival of competitors such as Elektrownia Powiśle, Browary Warszawskie and Norblin Factory? Strong competition, she replied, was just one of many challenges faced. “As everyone knows, market conditions have been very tough in recent years. This has forced us to be proactive, hosting dozens of concerts, theatre performances, workshops and many other attractions.”

The commercial success of Hala Koszyki is the result of several factors, starting with the “phenomenal location and history of the place.” Secondly, the tenant mix – arguably the most important factor. According to a recent survey of consumer behaviour, there was good news and bad news. The good news was that consumers still like to hang out with family and friends, eating and drinking, and they move from one to another, without feeling particularly attached to one place. The bad news was that these customers are extremely disloyal and demanding. “We need to keep surprising them”, Barbara said. Lack of innovation  is one of the biggest threats to the future of food halls, especially concerning the younger generation “which need to be entertained all the time.”

Michael Motz elaborated about the thinking behind the inclusion of a stage within Food Town, Norblin Factory’s food hall, from which the music is streamed around the entire food hall area. The stage  had not been part of the original plans. “We originally planned 26 food units in the space, but it became clear that it was too much. We needed something innovative and different from everywhere else.” Everyone loves live music, he said, but artists “aren’t the cheapest.” They invested in an expensive sound system, lighting  and LED screen and it paid off. “It brings in new guests every day.”

John used this example to illustrate the difference in thinking that sometimes occurs between the “traditional retail” view and the operator. The landlords ask how much rent they can charge for entertainment space. “Well, they can’t charge anything – but this is going to be the space that will enable the rest of the food hall to succeed,” he stated.

Wilanów Park, noted John, is including a larger proportion of restaurants than other similar projects. What was the thinking behind this, he asked Hubert Oleksiak of Nhood Poland? “The most prominent reason we think we can do this is because of the people who live in the area. They are very specific. Many of them work all day in their home office. They stay in their district and want to meet their friends in local places. At the moment it’s a bit of a “sleeping district” and local people want more.” Having a nightlife near them and not having to go into the city centre, is something they want, he added.

There was one last question for each of the panelists: “To the extent that you can, what is the main risk and the main opportunity that you see?”