CHICAGO – Chicago has always been a food town. Now, it's becoming a food hall town.
Food halls — the modern, upscale, urban reincarnation of the humble mall food court — have opened downtown and in nearby neighborhoods in recent years, and experts say their growth in the Windy City has just begun.
Why are food halls all the rage? They're a representation of where the restaurant industry as a whole is going. Boutique. Local. Instagram-able. They fulfill consumer demand for quick and diverse food options, with a curated set of both popular restaurant outposts and newcomers.
While the traditional mall food court has a group of fast-food options aimed at helping shoppers recharge, a food hall is made to be the whole show, a destination in and of itself with a cohesive, sleek design intended to elevate the experience beyond a grab-and-go lunch from a national restaurant chain.
"They are a destination. They bring excitement," said Doug Roth, founder of Playground Hospitality, a restaurant consulting firm. "Panda Express just can't do that."
Already widespread in New York and Los Angeles, there are about 35 to 40 food halls in the U.S., industry consultant Aaron Allen said. He estimates there could be as many as 200 across the country in just three years.
For restaurants, food halls are an opportunity to open a location with far less legwork. There's no long search for an ideal street location, and the start-up costs — a hurdle that often prevents fledgling restaurateurs from expanding — are far less. Profit is also far easier to come by because of the built-in foot traffic. Per square foot, a food hall stall can produce 10 times the sales of a traditional restaurant, said Allen.
For real estate developers, food halls are proving to be a lucrative way to fill ground-floor commercial space. They also can be a big draw for prospective tenants in high-rises above and surrounding the hall.