SAN FRANCISCO—As recently as a decade ago, food-related retail concepts were more about convenience than quality. But fueled by the rise of a foodie movement led by celebrity chefs and ushered in by millennials, food-centered social media platforms and culinary-focused cable channels, food halls slowly began to boast unprecedented cache, says Garrick Brown, vice president of retail research for the Americas at Cushman & Wakefield.

Cushman & Wakefield's Food Halls of America report tracks the explosive growth of food-centered retail since the recession and ranks the top 20 food halls nationally, as well as the top 10 in New York. This marks the firm's first comprehensive national report examining this growing dining trend.

“Markets that revolve around the baker, the butcher, the cheese purveyor, beer, good coffee, wine and local dining spots have served as a central hub for us to gather for thousands of years,” Rhonda Diaz-Caldeway, managing director of Cushman & Wakefield tells GlobeSt.com. “The brilliance of the San Francisco Ferry Building Marketplace was bringing this very deep-rooted foundation of our human nature back to life in a modern way.”

Consumer desire for quality and authenticity have driven the rise of food-related retail post-recession, with fast-casual concepts such as better-burger chains and fast-fire pizza purveyors presenting serious competition to traditional restaurants, according to the report. Chef-driven restaurants have also exploded in growth since 2010, when both Eataly and celebrity chef and restaurateur, Todd English, opened upscale European-style food halls concept in New York City. Accompanying the Cushman & Wakefield report is a video, the first in a three-part series, showcasing New York City food halls and discusses the trend with industry experts such as English.

“No other retail category has generated as much aggressive expansion over the past few years as food-related retail and arguably, there is no hotter trend within that category than food halls,” said Brown.

In the first nine months of 2016, food hall growth increased by 37.1% year over year with 18 more projects slated for delivery before the end of the year, according to Cushman & Wakefield data. Restaurants accounted for 25% of planned unit growth across all retail concepts it tracked in 2007, the first year Cushman & Wakefield began sourcing that data. By 2010, that number had increased to 35%, and for the last three years, restaurants have consistently accounted for 50% of all planned unit growth.

“Great Food Halls, such as San Francisco's Ferry Building Marketplace, are so exciting because they have the ability to constantly evolve and change with new concepts and cuisines,” says C&W retail vice chairman Kazuko Morgan. “This keeps the customer coming back for more. From the celebrity chef to the best local purveyor in the category, they can complement one another and also give the consumer as much or as little as they like. Today's consumers love experiences and trying new things, including cuisines or concepts. The modern food halls provide this and can easily change as the consumer demands and tastes inevitably change.”

The top 20 food halls in America include the Ferry Building in San Francisco, The Source in Denver, Union Station in Denver, Krog Street Market in Atlanta, Quincy Market Colonnade at Faneuil Hall in Boston, Pike Place Market in Seattle, Reading Terminal Market in Philadelphia, Revival Food Hall at the National in Chicago, Latinicity Food Hall in Chicago, Original Farmer's Market in Los Angeles, Grand Central Market in Los Angeles, Eataly in New York and Chicago (coming soon to Boston and Los Angeles), Midtown Global Market in Minneapolis, The Central Food Hall at Ponce City Market in Atlanta, West Side Market in Cleveland, Union Market in Washington DC, Eastern Market in Washington DC, Liberty Public Market in San Diego, Market on Market in San Francisco, and Market House at the Nashville Farmer's Market.

“Food Halls of America offers important market insights for our clients, from trending dining concepts to investors pursuing enrichment of retail assets,” said Gene Spiegelman, head of retail services, North America at Cushman & Wakefield. “Our goal in today's complex environment is to continue driving a better understanding of the markets and the dynamic trends that impact them.”

Instant Insights /

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