Colicchio Consulting takes a deep dive into the state of food halls in 2023
Read the Full Report – THE STATE OF FOOD HALLS 2023
Food Hall Trend Summary: The Top Ten
1. There are currently 127 food hall projects under development across the US, the vast majority of which are slated for delivery in 2023 or 2024.
2. Food halls are not a panacea for every landlord or owner looking to backfill traditional retailer vacancies in their shopping centers with more current, culturally relevant concepts that drive foot traffic. But food halls can be hugely successful, if executed properly.
3. There are six critical principles for food hall success: site selection, operational model, design,
programming/space activation, technology, vendor curation.
4. The rise of “foodie culture,” is not a Millennial-driven generational fad, but a long-term cultural shift
in our views towards food and food culture that continues to accelerate. Data suggests that the Gen-Z
demographic will continue to drive the trend forward.
5. Part of the appeal of experiential concepts like food halls to Millennials and Gen-Z is that digital
disruption has left younger generations with far fewer options for in-person socializing that previous
generations had in their youths.
6. In 2019 there were roughly 220 food hall projects in operation in the US. Since then, 120 additional
projects have opened, reflecting a growth rate of 55%. This occurred in what was easily the most
challenging period in modern history to operate a restaurant.
7. We only tracked only 22 permanent food hall closures during the pandemic years (March 2020 through
February 2023). Food halls fared far better than the rest of the restaurant industry.
8. Food hall vendors continue to benefit from the labor, food cost and operational advantages these projects offer, including low startup costs and quickly advancing point of sale technology.
9. Food halls are rapidly evolving in terms of concept, sizes, and geography. More than 60% of the projects opened since the pandemic have been in secondary, tertiary, suburban or even rural markets—in all size formats.
10. The average size of a US food hall is now 19,800 SF; the median size is 15,000 SF. Food halls continue to shrink in overall size, though there remain some significant exceptions.