The closure of PlantX's XMarket, the Midwest's largest all-vegan food hall, in Chicago's Uptown neighborhood marks the end of a roller-coaster journey for the company. Despite the growing demand for plant-based options, the venture faced unique challenges that ultimately led to its demise, offering valuable lessons for the future of the vegan food industry.

Exploring the Downfall of PlantX's Vegan Food Hall Experiment in the Windy City

The Ambitious Vision and Rapid Expansion of PlantX's XMarket

When PlantX, a publicly-traded Vancouver-based company, converted its XMarket in Chicago from a grocer to a bar and food hall in 2022, it was touted as the Midwest's largest all-vegan food hall. The new concept featured six food stalls, including popular local vegan eateries like Kale by Name and Kitchen 17, as well as the debut of Impossible Quality Meats, the first restaurant from Impossible Foods. The space also housed a vegan sushi counter from the team behind Bloom Plant Based Kitchen, one of the city's best vegan restaurants. PlantX's ambitious expansion into the Windy City was seen as a bold move to capitalize on the growing demand for plant-based options.

The Challenges of Sustaining a Vegan-Focused Food Hall

However, the journey of PlantX's XMarket in Chicago was not without its challenges. Even before the pandemic-driven inflation that drove up food prices, vegans have long complained about the high cost of meatless and dairy-free goods, whether sold at grocery stores or restaurants. While the vegan population is growing, and more vegan options are available at mainstream establishments, several restaurant owners have expressed concerns about the viability of relying solely on a customer base that is still considered niche.

The Sudden Closure and Its Impact on Vendors and Employees

The news of XMarket's closure, set to happen on November 3, 2022, came as a surprise to many. Vendors like Kale My Name owner Nemanja Golubovic revealed that they were not paying rent or other bills to PlantX, but rather a small commission on their sales, allowing them to keep the majority of their earnings. However, the sudden closure left rank-and-file workers with only five days' notice that their jobs were about to be eliminated, a harsh reality for those who had dedicated their time and effort to the venture.

Lessons Learned and the Future of Vegan Food Halls

The demise of PlantX's XMarket in Chicago highlights the unique challenges faced by vegan-focused food halls, even in a city with a growing plant-based community. The high costs associated with maintaining a dedicated vegan space, coupled with the still-niche nature of the vegan customer base, proved to be a significant hurdle for the company. As the vegan food industry continues to evolve, the closure of XMarket serves as a cautionary tale, underscoring the need for careful planning, adaptability, and a deep understanding of the market's dynamics to ensure the long-term success of such ventures.

PlantX's Broader Struggles and Consolidation Efforts

The closure of XMarket in Chicago is not an isolated incident for PlantX. The company has faced broader challenges, as evidenced by its recent consolidation of a location in suburban Vancouver at the Locavore Bar and Grill, where sales increased due to the move. However, the company's overall financial performance has been concerning, with a 45% drop in revenue since 2023, according to an MDA report. In the face of these challenges, PlantX has sought to expand its Bloombox Club plant subscription service to Italy, diversifying its offerings in an attempt to bolster its bottom line.

The Broader Landscape of Food Halls in Chicago

The closure of XMarket is not unique to the vegan food hall concept. Chicago has seen other food hall operators, such as Urbanspace and 16" on Center (the owners of Thalia Hall and Empty Bottle), exit the market in recent years. The pandemic-related challenges, including rising costs and inflation, have taken a toll on the food hall industry as a whole, making it increasingly difficult for these shared spaces to maintain profitability and sustainability.