A couple of companies are introducing the smaller food hall concept into new parts of the country, with each location featuring between five and 10 different food brands. Although many of these micro food hall concepts are configured as pickup-only spots, the tide appears to be changing, with physical dine-in prototypes gaining in popularity. Look for both Local Kitchens and DoorDash Kitchens to be expanding their micro food hall kitchen concepts outside of their home state of California, incorporating dine-in options in addition to the delivery/pickup models.
Local Kitchens, based in Cupertino, Calif., anticipates opening between 20 and 25 new units before the end of the year. The chain’s 2023 growth projections are still being determined but are expected to be similar to 2022. Growth will take place all throughout the state of California, including as far south as Los Angeles and San Diego, and by late 2022, Texas will also be targeted for new units. The brand seeks space in the 1,800- to 3,000-s.f. range in suburban neighborhood retail centers or freestanding buildings just outside of major metros. Preferred co-tenants include grocery stores, such as Sprouts Farmers Market and daily errand brands, such as CVS Pharmacy. Demographics targeted include areas with a large family contingent where the average household income is at least $100K.
Local Kitchens is a micro food hall concept featuring five to 10 restaurant brands per site. The concept made its debut last year in suburban locations outside of San Francisco as a way to introduce the city’s struggling independent restaurant brands to a new work-from-home crowd that is no longer commuting to the office. Now it has become a great way for restaurants to expand outside of their hometowns, and Bay Area-based brands, such as Curry Up Now and The Melt, are already being introduced to a wider audience through new Local Kitchens locations. Food can be mixed and matched from the multiple vendors and paid for on a single ticket order, which is ideal for foodies or families alike. Orders are available for delivery, pickup or dine-in, when space allows. Local Kitchens prefers to offer dine-in seating but does have a pickup-only prototype for sites with size constraints.
DoorDash, the San Francisco-based restaurant/grocery/convenience store delivery app, has been taking up retail space in metros for its DoorDash Kitchens ghost kitchens and its DashMart storefronts that both offer windows for pickup/delivery-only orders. But this month the brand opened its very first DoorDash Kitchens unit that offers dine-in services in a 2,400-s.f. micro food hall setting in downtown Brooklyn, N.Y., with seating for up to 20 customers. The dine-in configuration includes booths, a barstool countertop section that faces the kitchen, and a more traditional dining area.
DoorDash Kitchens, which is occupying a portion of the 9,512-s.f. Nimbus-branded commercial kitchen rental site, will feature a limited mix of both national and local brands that can be tallied up on one purchase ticket. New York-based eateries featured include Kings Co Imperial, a dim sum restaurant, Pies ‘n’ Thighs, a chicken and pie concept, the DOMODOMO sushi brand, the Kado Patisri bakery and Birch Coffee. Other brands to be featured will include The Milk Bar ice cream, Little Caesars Pizza and moonbowls, a San Francisco-based Korean health restaurant.
The concept, which will remain heavily focused on delivery/pickup orders while also providing dine-in seating, is a great way for restaurant brands to test out the Brooklyn market without committing to a long-term lease. Although this is the first indoor dining site for DoorDash Kitchens, the brand does offer outdoor dining at its Redwood City, Calif., DoorDash Kitchens site, which first opened in 2019. This Brooklyn space is the first DoorDash Kitchens location outside of California, but there are indications more expansion is in the works in the region, as DoorDash signed a lease in February for a 3,755-s.f. ground-floor retail space of The Deermar Residences luxury condominiums, also in Brooklyn.
