Pop-up Gourmet Food Stores

0
Discussion
Jun 09, 2010

By Bernice Hurst, Contributing Editor, RetailWire

In the world of food and
retailing, you never know what’s going to pop
up next — literally. Two chefs in Oakland, California are demonstrating just
how such a concept can work by setting out their wares in an ex-streetcar depot
in what the San Francisco Chronicle described as “an otherwise
unremarkable neighborhood.”

Open from 5 p.m. to 7 p.m. on a Wednesday evening
in May, the Pop-Up General Store was not expected to re-open for several more
weeks, so the 200+ shoppers who turned up left with their bags crammed full
of “restaurant quality” food
to eat in the comfort of their own homes.

Chris Lee and Samin Nosrat came up
with the idea of selling the dishes they most enjoyed cooking directly to consumers
after Eccolo, the restaurant where they both worked as chefs, closed down.
Along with chefs from other restaurants loved by locals, they set up shop selling
exceptional food made from exceptional ingredients. The offerings include heat-and-serve
and frozen dishes.

The Chronicle said that Mr. Lee and Ms. Nosrat’s
store “is
part of the new phenomenon of temporary eateries, farm stands and even one
‘underground market’ that spring up here and there around the Bay Area, sometimes
regularly in the same location, sometimes not.”

Ms. Nosrat told the Chronicle they
had no plan initially but didn’t
want people to forget them while they decided what to do next. Their objective
is to “create community and cook the food we love to cook and share it
with people – without all the externalities of the restaurant … When it’s
just between us and the customers, something more direct is spoken to people
— they can see it and feel it and taste it … So it just magically happened.”

During
their first session in January, the pair were on their own and filled just
28 orders. The May session had more than a dozen stalls. Prices were high but
so was enthusiasm. Customers said they were willing to pay for quality and
wanted “to support their own.” One made the fairly obvious
observation that it still costs less than eating out.

That said, the project
isn’t yet profitable although Ms. Nosrat is concerned
that “building too quickly might jeopardize quality.” It is far
more important to “develop the sustainable food system” and help
the cooks “make
their products known.” Fine-tuning with pantry items rather than expansion
is one such development. Others may pop up in due course.

Discussion Questions: What do you think of the potential of local food-centered
pop-up stores? Are chefs and consumers in other parts of the U.S. likely
to be interested in such a niche outlet?

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11 Comments on "Pop-up Gourmet Food Stores"

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Cathy Hotka
BrainTrust

We all keep talking about the time-starved customer, but it’s also time to talk about the adventurous customer who’s looking for a relatively inexpensive thrill to put on the dinner table. This trend is going to be a topic of conversation long after the economy is on strong footing again.

Anne Bieler
Guest
Anne Bieler
6 years 1 month ago

Pop stores are increasing in many areas–it’s a great way to bring new products and concepts forward. They have been a great success in seasonal markets and product intros–small space, great visibility, attract attention.

Gourmet Food is endlessly appealing but it’s difficult to create the right image, venue, and selection as a growth opportunity with trend focused consumers. Getting the right exposure and feedback on a limited investment would be significant here–pop-ups can be used to an important advantage.

Jonathan Marek
BrainTrust

I placed my first order with Pop-Up General Store last week, and I pick it up in Oakland tonight. I’m excited–the food looks absolutely incredible. It does make me wonder if we’re at the beginning of a new Farmers-Market-like movement, with prepared food.

Another local Bay Area example: an outstanding local Singaporean chef, whose restaurant closed last year, is now cooking Singaporean food in a shared kitchen and delivering it to homes ever Thursday evening. The food is amazing. His overhead is far lower. Is that an expandable concept?

The Bay Area is often on the forefront of things like this. Like Farmers Markets, I expect these ideas will be highly local, but perhaps there is a role for broader facilitating organizations. We’ll see how these ideas grow.

Lee Peterson
BrainTrust

Yes, I believe it’s a big idea waiting to happen. There’s an old retail adage: “go where the customers are,” and today, customers are not going to focused areas like malls as much as they used to (internet). Therefore, the notion of getting out to them while staying very flexible and focused seems like the next generation of that old, simple idea.

For inspiration, look at the success of the “Taco Trucks” in L.A.–using social media, they pop-up in a different place (usually near a club or gathering spot) every day and do a fantastic business. Makes sense to do the same thing on a different level and even with something other than food.

Ed Rosenbaum
BrainTrust

Another idea and concept put in action that could start a national trend. I think it is exciting and look forward to seeing it happen in more areas.

We always look for something different to eat. This is not that much different from the “Carry-out window” many restaurants have opened. But somehow I see this as more intriguing and exciting. It adds a spark to the evening meal.

Joan Treistman
BrainTrust

We talked about the pop up stores taking advantage of empty store fronts before Christmas. It was a way to bring goods to consumers at the shoppers’ convenience.

Consumers want prepared foods but they are not always conveniently accessible, appealing or perceived as a price value. Buying from chefs with credibility and an array of dishes that appeal to the eye and taste has great potential. No doubt others will follow the pioneers of Oakland and cross back East to my neck of the woods. I am looking forward to making my first purchase.

Bernice Hurst
BrainTrust

Since writing this piece, I’ve read one about NYC in the NY Times which casts a shadow over such enterprises–licensing requirements for the kitchens in which the food is prepared. While it is obviously important to take precautions and prevent the use of unhygienic equipment, extremely small food producers could be shut down before they even get started if they have to go through the expense and sometimes restrictive practices involved in accreditation. The NYT article was about the success and popularity of individual cooks who were selling food that their customers loved BUT preparing it in home kitchens. While these obviously cannot and will not meet industrial or professional standards, there will have to be some flexibility in regulations in order for them to survive and thrive. Hopefully demand will help ensure supply.

Craig Sundstrom
Guest

Bernice’s piece left me with a lot of questions (which the original Chronicle article–unsurprisingly–left unanswered as well): What about health/safety issues? We talk a lot on RW about food safety, and this kind of set-up seems problematic, not substantial enough to be able to absorb many of the regulatory burdens that a permanent business would, yet nevertheless needing oversight; Marketing? Given the ephemeral nature of this, how does word get out? (BTW, this particular location is a rather marginal, high-crime/low foot traffic area, so walk-in business must be non-existent.)

Doug Stephens
Guest
Doug Stephens
6 years 1 month ago

In some respects this reminds me a little of the Kogi Korean BBQ truck in L.A. that has developed a loyal following of customers that follow the truck’s whereabouts on Twitter. Knowing where the truck will be at any given time is half the experience for their customers.

Beyond the quality of the food, which in both cases is apparently excellent, these guys are putting fun and adventure back into the equation for their customers.

As the lines between channels and concepts become increasingly blurred, I expect and sincerely HOPE to see more great concepts like this one.

Pat Wilkinson
Guest
Pat Wilkinson
6 years 1 month ago

The real beauty of this model is that their doors are only open for the 2 most important hours in their business day–most ready to go food retailers are bearing the costs of keeping customer service staff on for 10-12 hours, but 90% of their sales will be done from 5-7 pm. Using this model, the owners are employing cooking staff only, and are able to focus on productivity and quality in the kitchen. This should allow them to achieve profitability more easily.

It will be interesting to see how long it takes for the retail real estate industry to come up with sustainable leasing models that work for both retailer and developer.

Tony Orlando
BrainTrust

This will work in high density city populations that have higher income people. the idea is sound as long as the finished product is high quality, and safe. Most rural areas could not do this, but in all major cities it could be successful. The other issue is permits, and politicians granting licenses to the pop-ups without stepping on other restaurants’ toes in the immediate vicinity. I wouldn’t want a pop-up kiosk outside of my establishment, so proper placement is critical.

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