Is Chicago’s Food Hall Era Coming to an End? The Impact of Time Out Market’s Sudden Closure

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Is Chicago’s Food Hall Era Coming to an End? The Impact of Time Out Market’s Sudden Closure

On a recent weekday, just before 5 p.m., a small crowd gathered at Sterling Food Hall. Office workers, eager for drinks before the weekly pub trivia, braved 10-degree temperatures. Around 50 people filtered in, some still wearing work IDs, ready to unwind with beers, Cokes, and shared plates of fries or pizza slices from Pizza Dada.

“How does the kimbap taste?” a man in his thirties asked after taking the empty chair next to me. The new vendor, 82 Kimbap, was quickly gaining popularity for its Korean rice rolls. They offered fillings like pickled radish, beef bulgogi, and cream tuna salad. The last one, highlighted with perilla vinaigrette, was a hit.

The following hours saw laughter and talk about work—intermixed with nostalgic tunes like “Toxic” by Britney Spears—creating a lively atmosphere. This happy hour felt familiar, reminiscent of times in the Loop and West Loop when bars thrived. Yet, the setting? It was a food hall, not your usual pub.

The food hall concept exploded onto the scene a decade ago, evolving from basic suburban food courts to vibrant venues filled with local food vendors. But when COVID-19 struck, many food halls suffered, including the bustling Time Out Market, which closed its doors on January 23.

Some viewed this closure as alarming. However, operators of surviving food halls suggest the concept isn’t dead yet. Office occupancy is gradually rising, and workers are seeking out interesting lunch options and meaningful social connections before heading home. They’ve also become popular among tourists looking for local flavors without the hassle of reservations.

“When we initiated Revival, the idea of a food hall was different,” Bruce Finkelman, managing partner at 16” On Center, noted. He opened the Revival Food Hall in 2016 and later the From Here On Food Hall. “We aimed to build a neighborhood spot. Now, these places need to serve as an amenity and a reason for employees to return to work.”

From 2010 to 2017, food halls in the U.S. surged by about 700%, reaching 220 by 2019, according to brokerage Cushman & Wakefield. By 2023, that number increased to 360. In Chicago, establishments like Aster Hall, Block 37, and others appeared amidst soaring skyscrapers and hot tourist spots.

Food halls were designed to provide variety, often hosting events and live music to draw crowds. “It felt like being the kitchen at a dinner party; this was their place,” recalled Finkelman. But in recent years, food halls have faced tougher conditions.

In neighborhoods with less foot traffic, success has been hit or miss. For instance, 88 Marketplace has thrived in Chinatown since opening in 2021, while other concepts have struggled to gain traction.

As COVID-19 altered daily life, many food hall projects faltered, causing closures like Politan Row. Time Out Market’s CEO tied its end to pandemic effects and inconsistent visitors due to remote work. Vendors also pointed to a lack of investment; some like Jessica Perjes of Tacotlán expressed concerns over management’s efforts to attract customers.

Interestingly, social media sentiment seems to be shifting. Many users reported favoring specialized supermarkets like Gangnam Market and H Mart over traditional food halls. Some even voiced that the food hall trend was on the decline.

This past fall, however, there were signs of hope. Weekly office occupancy hit a post-pandemic record of 55.8% in major U.S. cities, with Chicago seeing around 58.7%. Restaurants like Sterling Food Hall reported increased foot traffic and sales, partly due to strategic marketing efforts targeting tourists.

Come lunchtime, customers are flocking back, with around 150 transactions on weekdays at places like Seedo’s Levantine Bakery. Owner Mutaz Abdullah believes that a renewed appreciation for food halls is forming, as people crave spaces that aren’t just restaurants or coffee shops. His establishment at Sterling offers a diverse array of vendors and social opportunities, filling a need for communal areas.

With dining preferences evolving, food halls remain unique venues for food enthusiasts. They can be a testing ground for aspiring restaurant owners and a gathering space for the community. Programs like Sterling’s Showcase series—where attendees sample food for a fee—are gaining traction, highlighting opportunities to engage customers right after work.

As the landscape changes, food halls have the potential to thrive, catering to a public eager for connection and culinary exploration in the post-pandemic era.



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