Why is the Food Market the New Successful Business Model?
Those of us who love travelling and food altogether surely remember famous food markets like La Boqueria in Barcelona, Markthalle Neun in Berlin, Marché des Enfants Rouges in Paris or Borough Market in London. These food markets are a tourist magnet and a gold mine for local entrepreneurs.
The good news is that food markets have become more popular in the last couple of years all over Europe and you can see them more often in the big cities.
Discover here all you need to know about this new business model that we already developed in Moscow, Chișinău and, most recently, in Sibiu, Romania.
The Food Market, the New Food Court?
Most of the time, a food market is thought of as being similar to the mall food court. Well, actually they are not the same.
Unlike the food court of a mall, in a food market, the restaurants or the food stations are replaced by a variety of local businesses, traditional food vendors, or with a specific, and stores that are commercialising a limited amount of their products, all under the same roof.
Another difference is the fact that, unlike food courts, food markets are designed homogeneously and coherently and you can often find them in storages, historical buildings or even in old cinemas.
How did Food Markets Become Popular?
Similar to the food trucks trend, food markets represent a market change generated by the attachment of the public to local businesses – smaller but extremely creative, capable of offering unique culinary experiences.
A constantly changing food chain, the higher costs for the workforce, the increasingly expensive rent, or the attraction for small or local traders – all of these played an important role in making food markets popular.
Food Market Types
Now, there are two types of food markets:
In a multi-concept food market, all the eating options are operated by the same supplier or owner. This offers the vendor the opportunity of trying different types of food.
Multi-vendor food markets rent out space for a variety of suppliers, in order to create a multicultural space, gastronomic wise.
The Benefits of this Type of Business
From a restaurant’s perspective
Opening a restaurant from scratch involves a lot of work and responsibilities. But if you choose to open a mini restaurant in a food market, then you should expect:
- Low costs
Starting costs are lower than opening an independent restaurant. This is because the location is partially or completely equipped and furnished, and the rent is shared with the other vendors.
- Shared costs
Costs like maintenance are shared between the businesses in a food market.
Through its own existence, a food market offers a high rate of exposure, compared to a self-sustained restaurant.
- Constant traffic
The variety of vendors guarantee a bigger flow of people.
Taking into account that the electric and sanitary networks are used by everyone, when there is a problem, it is much easier to solve.
From a client’s perspective
- Unique culinary experiences
Most of the time, in order to attract attention, a vendor will create a unique menu, with dishes you surely haven’t tried before.
- A variety of choices
In a food market, you can choose from a variety of dishes and drinks.
Under the same roof, you can find food from all around the world.
In a food market, prices are accessible and you have the possibility of enjoying lots of dishes in a decent budget.
From the perspective of the developers
- Extra income
Building developers can create a food market on the ground floor of a building in order to close more rent contracts for space.
- Bigger success odds
Even if a business in the food market can’t support itself, this doesn’t set the whole business for failure.
- Property value
Food markets are known for raising the property value nearby.
Mainly, food markets are a rather new and interesting concept, for restaurants but also for developers. They can be considered an attractive option for new restaurants or seen as a great transition for businesses that want to overcome the food truck level.
Also, from our point of view, food markets are an excellent canvas for creativity testing. Keeping in mind some key elements – durability, wide space for customers and distinctive elements for vendors – food markets are an excellent space for exercising creativity and they can represent a pinch of vitality for the whole neighbourhood.