The UK Multi-Vendor Operator Annual Report 2026, produced by hospitality consultancy Next Phase in partnership with me&u, found that 35 new venues opened during the period, with a further 65 sites currently in active development.
The total number of trading food halls increased from 114 to 149 in the 12 months to 2026, while the development pipeline grew from 52 to 65 sites, a rise of 25%.
Against this backdrop of expansion, just one venue closed during the period: Sheffield’s Department, formerly known as Kommune. The sector also saw its first major acquisition, with Market Halls acquiring Shelter Hall from Sessions.
One closure against a backdrop of thousands of restaurant and pub closures is a number that demands attention," says Next Phase co-founder and former Market Halls boss Simon Anderson.
“What is equally significant is the quality of the pipeline; these are not speculative schemes. Sixty-five sites in active development reflect disciplined, long-term conviction in this format.”
Next Phase attributes the sector’s low attrition to structural advantages that suit the current economic climate.
It points out that turnover-based rental models align the interests of operators and landlords more effectively than traditional fixed leases, while shared kitchen infrastructure spreads both cost and risk across multiple vendors.
However, the report also highlights ongoing challenges. Food halls typically operate large, energy-intensive spaces at a time of elevated utility costs, while the current business rates system continues to penalise high-footprint venues that play a key role in community regeneration.
Next Phase is calling for greater recognition of the sector’s contribution to town and city centres.
Data from me&u indicates a market operating at two distinct scales. Food halls in major UK cities average £5.6m in annual revenue, with year-on-year growth of 10.75%. By contrast, venues outside major cities average £1.8m, with growth of 2.75%.
According to Next Phase, this gap reflects opportunity as much as disparity. While the model has historically relied on dense urban populations, it is now gaining traction in market towns, suburban areas and smaller cities, where lower operating costs and reduced competition support viability.
Next Phase is a specialist hospitality and property consultancy focused on food halls, markets, heritage assets and town centre regeneration. The firm works with landlords, developers, local authorities and operators to reposition underperforming assets into commercially viable destinations.
Founded by Anderson, Hayden Ferriby and Emma Forbes, the consultancy brings together operational, commercial and development expertise across market estates, retail, leisure and large-scale regeneration projects.