John Gabrovic, Founder and Managing Director of Inspire Real Estate Advisory, discusses what makes food halls thrive
John Gabrovic, Founder and Managing Director of Inspire Real Estate Advisory, discusses what makes food halls thrive
Insider: You were involved in shaping two of Warsaw’s most influential food hall projects, Elektrownia Powiśle and Food Town. Looking back, what do you think they got right about Warsaw’s dining habits, and what has surprised you most about how people actually use these spaces?
John Gabrovic: Food halls offer exactly what consumers of all age groups are looking for today: informal and enjoyable dining environments, variety, and fast service. What makes me most proud is that Warsaw’s food halls are quite possibly among the most impressive in Europe when you consider every aspect, the layout, interior design, quality and diversity of the food, the bar offering, and, in the case of Norblin, a well-executed entertainment programme.
The UK may have more food halls, but I would argue that Poland has better ones. What has surprised me most is how much time, and money, Varsovians now spend socialising in cafés, restaurants and food halls. If I may say so, they’re beginning to behave a little like the British. Every day around 4 p.m., young professionals leave their offices and gather for a drink or two, often in a food hall setting.
A new food hall is planned for the BUW area, serving one of Warsaw’s largest student communities. There are already rumours that many of the main dishes could cost around 50 zł. Can a food hall still function as a genuine social and community space if its prices are out of reach for a large part of its natural audience?
Wow. I am a strong believer in value, and I think a quality food hall meal should cost no more than €8–10, or roughly 34–44 zł. Food prices in Poland are rising at an unhealthy pace, driven primarily by excessive growth in labour costs.
We will soon find out whether students have the spending power to support a food hall where many meals cost 50 zł. Price always matters, especially when your core audience is young people.
Food halls were originally seen as places where independent operators could test concepts without the risks of opening a standalone restaurant. Has that model held up in Warsaw, or are food halls increasingly becoming a playground for more established brands and investors?
Great question. Because the upfront investment is relatively low, food halls remain an excellent place for young entrepreneurs to test new concepts. Both consumers and food hall owners benefit when passionate founders are working directly in their kitchens.
However, as Warsaw’s food halls approach their tenth anniversary, there is a growing tendency among some owners to play it safe by signing leases primarily with well-established, well-capitalised operators. While this provides stability for landlords, consumers may eventually start craving more originality and authenticity.
The consumer is queen, and she ultimately decides who succeeds. It will be interesting to see how people respond to the trend you’ve accurately identified.
Warsaw now has several major food halls competing for customers. Do you think the city has reached saturation point, or is there still room for new concepts—perhaps ones that serve a different purpose than food and drink alone?
Consider that Manchester, a city of around 600,000 people, has roughly ten successful food halls. That alone suggests there is still room for growth.
Any new food hall in Warsaw will need a clearly defined catchment area and a distinctive identity if it wants to compete effectively. That said, I believe there are still untapped consumer groups and geographic areas that could support new projects.
We also see strong potential in districts on the outskirts of Warsaw and neighbouring municipalities such as Wilanów, Piaseczno, Bielany and Bemowo. Urban residents do not have a monopoly on the desire for good food, great drinks and enjoyable social experiences.
When developers pitch a food hall today, what separates a project that will become part of the city’s fabric from one that risks feeling like a well-designed collection of food stalls? Is the key factor the food, the tenant mix, the architecture, or something less obvious?
Another great question, and one with a complicated answer. Hospitality is the hardest easy industry in the world. Success comes from executing a million seemingly simple tasks well, every single day.
The most successful hospitality projects are rarely those created with profit as the primary goal. The focus needs to be on creating a compelling dining environment, developing a food and drink offer people genuinely want, and wrapping it all in a level of service that resonates with the local community. Finally, that offer must be priced appropriately for the community’s spending power.
It is that easy, and that hard.
Because food halls have been so successful in Poland, we are beginning to see some poor examples emerge. These projects borrow the label of a food hall without delivering the quality or experience consumers expect, which ultimately damages the category. Hopefully, the strongest operators will continue to innovate, raise standards and drive the sector forward.