What's A Food Hall And What Makes It Different From A Supermarket?
Food halls have been around for centuries, but have recently become a part of a rising trend of renovating old warehouses and buildings into community hubs with restaurants and bars. Innovating the once-popular food court model commonly seen in malls throughout America, these spaces feature local restaurants, breweries, and various artisans offering high-quality products, as opposed to forgotten mall food court restaurants. The classic Pike Place Market in Seattle and the more recent Shaver's Hall in New York City are perfect examples of this.
Supermarkets, on the other hand, provide consumers with a large self-service marketplace where they could buy their groceries and household goods. Originally named "groceterias" due to their cafeteria-style and self-service model, this new type of retailer boomed in popularity during the 1920s. Chain stores like Kroger were opening locations across the nation and taking over as the face of food markets due to cars, convenience, and lower prices. Since food halls began re-emerging, grocery stores have responded by integrating cafes and restaurants into their markets to ensure a well-rounded shopping experience.
A food hall is an old-world shopping experience that maintains its charm
According to a New York Times article, the popularity of food halls erupted between 2010 and 2017. In those seven years, over 200 new developments opened, resulting in a 700% increase in operating establishments, and that number has only continued to grow. Industry observers believe that this was due to a growing demand for chef-driven casual meals in engaging social environments ideal for younger consumers in their 20s and 30s. Furthermore, experts at Cushman & Wakefield predict that the United States will have more than 700 food halls by the end of 2027.
Food halls act as community builders, using engaging social spaces and local vendors to bring people together, whether it's residents or tourists. Pike Place Market, being a more developed food hall (opened 1907), hosts an eclectic blend of vendors from tasty casual meals to hidden gems only seen at local markets. Although it's home to the world's first Starbucks, major chains end there. Instead, diverse eateries like Pike Place Chowder and Pasta Casalinga offer high-quality cuisine. Farmers selling fresh organic produce and butchers offering prime cuts of meat line the market's main corridor. Local artisans and shop owners add charm to the area, offering everything from household goods to custom art pieces. In support of residents, programs such as Fresh Bucks lower the cost of fruits and vegetables. Communal seating can be found on the outskirts of the market, where patrons get a view of the Puget Sound.
Supermarkets respond by adapting to their own food hall model
Supermarkets — generating over half a trillion dollars annually, according to Statista — remain the dominant force in food retail despite the rising popularity of food halls. However, with the resurgence of food halls and farmers markets along with technological advances, supermarkets and grocers have adapted to stay competitive.
Supermarkets differentiate themselves from grocery stores and other shops by serving as large retail spaces for families to grab their food for the week, along with some household items. However, supermarkets are evolving into a hybrid of food hall, traditional grocer, and e-commerce. IBISWorld reported that, more than 70% of supermarkets and grocers have begun offering online ordering for both pickup and delivery services, either through third-party services like Instacart or their own platform.
Expanding on the industry's omnichannel approach, supermarkets like Walmart continue to add various on-site restaurants to meet evolving consumer demands. The giant retailer has partnered with Crave, featuring its Express Model to offer dine-in options at various locations. Other restaurants and fast-casual chains, like Mr. Gatti's Pizza, have already partnered with Walmart while the company continues to transition its stores into a supermarket food hall hybrid. As supermarkets introduce dine-in options while food halls continue to pop up across the nation, you can expect to have a more well-rounded shopping experience.