New Food Hall Quietly Taking Shape

A new food hall is under construction in downtown Milwaukee, but it’s possible you’ll never step foot inside it.

That’s because the firm behind it, California-based KBD Holdings, is designing it primarily as a “ghost kitchen.” The concept relies on stripping a restaurant down to just its kitchen and focusing on online sales through platforms like DoorDash and Uber Eats.

KBD, which has yet to publicly comment on the project, purchased the one-story, 5,746-square-foot building at 733-737 N. Milwaukee St. in 2021 for $850,000, and is now building out the space for future tenants.

And while Zarletti next door is a single restaurant with a full dining room, KBD will pack as many as 19 restaurants into a series of approximately 200-square-foot kitchens.

Unlike Crossroads Collective on the Lower East Side, the Milwaukee Public Market in the Historic Third Ward or the 3rd Street Market Hall in Westown, there won’t be a large dining area, space for big groups or a bar.

Those food halls are focused on curating a collection of locally-owned restaurants and new concepts from established chefs to deliver a special dining experience. The unnamed KBD project, based on building permits and reports on other projects the firm has underway, is attempting to locate a number of restaurants within a short delivery or pickup distance of thousands of potential customers.

“Given the location of the restaurant and proximity to public transit we anticipate 50% of consumers will arrive by foot or public transit,” said a February 2021 application for either the Milwaukee Street space or a vacant building at 107-115 E. Wells St. “It is anticipated that the balance of the visitors will utilize the abundance of street parking and public parking garages.”

The business would be open from 10 a.m. to midnight daily.

A February 2022 application from KBD calls it a “virtual food hall.” The company will even handle delivery and pickup for its tenants, all they have to do is cook their items from a near-turnkey kitchen.

A floor plan submitted to the city shows only a small dining area at the front of the building with counter seating. The basement would be fully utilized for storage and two kitchens.

The project will need Board of Zoning Appeals approval to move forward because city permits refer to it as a “food production facility” instead of a restaurant, the latter would be permitted by default.

Dan Beyer Architects is serving as the architect on the project. SI Tumbler Construction is listed as the general contractor.

KBD, according to its website, owns and manages more than $5 billion of “real assets that support the needs of communities across the globe.” Reports of similar virtual food halls owned by the firm can be found in Houston, Seattle and Las Vegas.

The firm purchased the building from the F Street Group. Milwaukee-based F Street acquired the one-story building in 2019 after it had already been vacant for more than a decade. Built in 1877, the building has the rare distinction of having lost floors since its construction. It was originally three stories. My colleague Michael Horne profiled the Milwaukee Street building in his “What’s It Worth” column in November 2019.

Photos

Pre-Construction Photos