Food Halls May be the Future of Shopping Centers
Food halls adapted quickly to the crisis, perhaps more than more retail categories; in fact, 75% were able to stay open during lockdowns by pivoting to this model, according to the latest Cushman & Wakefield Food Hall Report.
DALLAS—Before COVID, food halls were not only the fastest growing trend in food and beverage but one of the hottest growth concepts in the greater retail world. Food halls became a critical part of landlord and developer strategies to backfill empty space in ways the now-challenged department store sector once did, according to the latest Cushman & Wakefield Food Hall Report.
Food halls adapted quickly to the crisis, perhaps more than more retail categories. In fact, 75% were able to stay open during lockdowns by pivoting to the ghost kitchen model.
Moving into the post-pandemic era, more landlords and developers will need to backfill retail space lost to the crisis. Reconfiguring shopping centers towards those concepts may well resonate with consumers. Most importantly, large swaths of the independent restaurant community are going to need a rebuilding mechanism with lower inherent risks for all. This improved operational model would allow for higher profit margins and low barrier-to-entry, says the report.
This solution might be helpful to small operators in a current and post-pandemic world, says David Daniels, senior vice president of marketing of The Food Hall Co.
“The Food Hall Co. believes their operational model offers more than an amenity in mixed-use developments,” Daniels tells GlobeSt.com. “They are an e-commerce-proof sustainable anchor tenant on the leading edge of culture. By creating an experience-driven venue, food halls drive traffic to mixed-use developments, bringing traffic and sales to their stall partners and neighboring tenants. Food halls offer a relatively low barrier of entry to restaurateurs with the potential of high return per square footage.”
Pre-COVID, Legacy Hall at 7800 Windrose Ave. in Plano had 35,000 people in the space each week and an annual traffic count of 2 million. Moreover, Legacy Hall executed 414 events in 2019, says Daniels.
Another food hall concept in the Dallas metro is located at the AT&T Discovery District (its name is to be announced later).
“Hospitality Alliance was hired by AT&T to create an anchor tenant for their new recreational area on the campus called the Discovery District located at AT&T’s headquarters in Dallas,” Daniels tells GlobeSt.com. “Once fully open, the Discovery District will contain restaurants, retail and large digital displays including a seven-story media wall where sports, movies and more will be shown, making it a destination in the heart of Dallas.”