Hala Koszyki, Hala Gwardii, Elektrownia Powiśle, Norblin Factory and Browary Warszawskie are different in terms of food options, location, and tenant-mix, but the common success factor is the communities that they create. Being in line with the idea of the 15-min city, they become the social hearts of neighbourhoods and anchors for retail and mixed-used projects. From a financial perspective, creating a food hall can be an expensive investment but when done and operated correctly, it pays off. - concluded the experts during the most recent Urban Land Institute (ULI) Poland Places + Spaces event.
Warsaw has become the real epicentre of the food hall innovation. Their evolution started back in 2016 with Hala Koszyki and Nocny Market, then Hala Gwardii in 2017, Elektrownia Powiśle in 2020, Browary Warszawskie, Fabryka Norblin in 2021, and Fabryka PZO in 2022. - One of the reasons why the food halls are popular, and why in particular in Warsaw is the change in how the younger generation spends its time and money. People are looking for something more substantial than the offers a food courts and they are now better educated in terms of gastronomy. But much of the success of food halls in Warsaw is simply down to the professionalism of the operators and the effective positioning of each food hall. – explained John Gabrovic, Founder and Managing Director of Inspire Real Estate Advisory, an expert in the local food scene. A food hall is an entirely different concept than a food court. The food court was created to quickly satisfy hunger and to stop people leaving the shopping centre. It exists largely to keep shoppers shopping, not as a destination. A food hall, on the other hand, is a collection of passionate street food vendors in a social dining atmosphere.
Food halls tend to do well inside renovated schemes simply because of the atmosphere– another reason Warsaw fares so well in its food halls. Yet the main reason a food hall is successful – other than the food – is the human factor. Different concepts attract different clientele, and food hall – when done right – provides the community factor. - Each of them has its strengths. Elektrownia Powiśle does extremely well in the summer. Both Norblin Factory and Browary Warszawskie do well despite being less than 500 m apart because they target different clientele. Browary is positioned as premium – it’s the only food hall in Warsaw where food is served on real plates. In Norblin there is always something going on music-wise, while PZO on the other side of the river has great colours and materials. – added John Gabrovic.
- Food halls are so much more than just food! It is fascinating how fantastic they complete the idea of the 15-min city, becoming the epicentres of neighbourhoods. It is also important to remember that while such schemes require significant investment, they do pay off in the end, becoming the anchor of the entire retail or mixed-use project – summarized Soren Rodian Olsen, ULI Poland Chair.
This is exactly the case of Stara Rzeźnia - Vastint Poland’s upcoming mixed-use project in Poznań, where the food hall will be its highlight. Rafał Przybył, Regional Manager at Vastint Poland, admitted that it is primarily there to increase the value of the project. - The location is excellent. There are 16,000 sqm of historical buildings that need to be preserved, while also being supplemented with new buildings, including residential and office. Right from the beginning we decided to place a lot of importance on the cultural element. - he said.
In the case of Wilanów Park, Hubert Oleksiak, Leasing Manager, Nhood Polska said that the 15-minute neighbourhood is the guiding philosophy for the project’s concept. The scheme is within a 15-minute walk from the whole Miasteczko Wilanów residential area. It will feature a hotel, offices, a cinema, and a park, as well as the retail, food & beverage. Wilanów Park is including a larger proportion of restaurants than other similar projects. – It is because of the people who live in the area. They are very specific. Many of them work all day in their home office. They stay in their district and want to meet their friends in local places. At the moment it’s a bit of a “sleeping district”, and our ambition is to change that. - he added.
The commercial success of Hala Koszyki is the result of several factors, starting with the phenomenal location and history of the place. Secondly, the tenant mix – arguably the most important factor. But the hall also faces some challenges. – explained Barbara Wójcik from Globalworth: - Lack of innovation is one of the biggest threats to the future of food halls, especially concerning the younger generation, which need to be entertained all the time. As everyone knows, market conditions have been very tough in recent years. This has forced us to be proactive, hosting dozens of concerts, theatre performances, workshops, and many other attractions. – continued Barbara Wójcik. - Maintaining long-term relationships with our tenants, while respecting mutual interests, is one of our priorities. As a result. during the COVID period we lost only two tenants. The big threat to food hall operators that we see coming, are the new trends that are coming in food, such as vegan, superfoods and health foods. We need to meet these new trends.
Dariusz Domański, from White Star Real Estate, second that: - Elektrownia Powiśle launched at an extremely challenging time. We opened in May 2020 and a month later there was lockdown. We spent a lot of time thinking about tenant mix – what would people want? We visited all the major food halls in Europe and even some in the USA – as well as Hala Koszyki more locally so that we could get an idea of what the Polish consumer likes. Back then there was an assumption that - being in Poland - Polish food was a must, but this turned out not to be the case, as the clients visiting food halls expect international cuisine. People wanted something different. - Once we decided we’re going international, we needed to find the best operators in Poland. Sometimes we would take a bet on a tenant or a concept, but for some reason the concept did not work out, but often the ones that replaced them did. My advice to landlords would be that if something isn’t working, don’t hesitate to make hard decisions.
Michael Motz elaborated about the thinking behind the inclusion of a stage within Food Town in Norblin Factory, from which the music is streamed around the entire food hall area. The stage had not been part of the original plans. - We originally planned 26 food units in the space, but it became clear that it was too much. We needed something innovative and different from everywhere else. Everyone loves live music, he said, but artists aren’t the cheapest. The investment in an expensive sound system, lighting and LED screen paid off. In terms of challenges, the main problem is a lack of space in the scheme. - We don’t have an issue with empty tables, we have a problem with not enough tables. – adds Michael Motz from Food Town in Norblin’s Factory.
What will the food hall look like in 3-5 years? John Gabrovic believes there is a risk that if the next wave of eateries isn’t found, and existing ones simply expand, that some of the authenticity might be lost. - Authenticity leads to community, the key ingredient in the mix. Yet there will always be the perspective of landlords pushing for the higher rents to maximise the value of the asset – but you only create the value if you foster that community.
Media contact:
Anna Groß, anna.gross@marielhaan.com, +49 1520 7157 198
Patrycja Rabińska, patrycja.rabinska@marielhaan.com, +48 504 006 016
The Urban Land Institute is an international non-profit organization and research institute whose mission is to guide responsible urban planning and development that fosters the creation and strengthening of local communities. The Institute was founded in 1936 and now has over 45,000 members worldwide.
Urban Land Institute Poland has been operating in Poland since 2014, implementing initiatives that enable the exchange of experiences and opinions on the challenges faced by developers, investors, architects, urban planners, and local authorities.
The Partners of the PLACES + SPACES event are: Grupa Capital Park, Greenberg Traurig, Globalworth, Skanska, Gdynia, Colliers, Cushman & Wakefield, Dentons, DWF Poland, Echo Investment, Hines, MDDP, Van der Vorm Group, Vastint Poland and 7R SA.
