Chain Invasion

[rlibkind]

Rick Nichols column today (Philadelphia Inquirer, June 17, 2004) brought a welcome focus on the chain restaurant invasion of Center City.

The invaders hardly limit themselves to the vicinity of 15th and Walnut described by Nichols:

• Brinker International has staked out the territory between the Convention Center and the Marriott, plunking its Maggiano's, The Corner Bakery, and Chili's brands on the ground floor of the new Parkway Corporation garage. Can Brinker's other stores - On The Border, Romano's Macaroni Grill, Big Bowl Asian Kitchen, and Rockfish - be far behind?
  
• The Avenue of the Arts outposts of The Palm, McCormick & Schmick's and the Capital Grill may be classier than Brinker's brands, but they remain interlopers draining dollars that might otherwise go to more authentic local eateries.
  

The Center City conglomeration of conglomerate restaurants is neither fluke nor conspiracy. No matter how much we may lament it, the burgeoning presence of chain eateries downtown is the rational result of local development policies aimed at fostering a tourist economy and Wall Street’s earnings growth pressure on the restaurant industry.

Walk Center City and the success of Philadelphia’s tourism campaign becomes obvious. Street corners find small groups of families clutching maps deciphering the city’s grid. When the sun is shining double-decker tour buses roll by with seats filled. The Ducks became a downright nuisance when introduced to Society Hill last year. Hotel occupancy may not be as high as the city’s hospitality industry would like, but so far this year occupancy, room rates and revenue per available room have shown significant increases. That brings smiles to the faces of managers of Marriott’s three Convention Center hotels, which offer nearly 2,200 rooms, and to the operators of Center City’s 8,500 other hotel rooms. To them, the public’s massive investment to create the Pennsylvania Convention Center (bolstered by government and trade association promotional spending) has been rewarding.

Whether or not the general public has earned an adquate return on its investment is arguable, but the success of the tourism development campaign created a critical mass of potential diners for the chain restaurant operators. Although Center City may lack the parking ease of strip malls astride the Interstate, the presence of thousands of hungry tourists and conventioneers proved irresistible to the group owners.

Part of the allure of the chains to tourists is their familiarity. Those in a strange city welcome their sameness and reliability. To a visitor from the suburbs of Indianapolis or a Southern California gated community who rarely wanders into downtown precincts, the chains offer respite from a vibrant city center’s assault on the senses.

A conventioneer could cocoon himself at the Marriott and stay under a roof 24 hours a day, except perhaps for a brief foray across Filbert Street to Chili’s. Fortunately, our pedestrian-friendly streets tend to counteract this tendency. Many find the nearby presence of the Liberty Bell, Independence Hall, the new Constitution Center and all the other attractions of the historic district too hard to resist. Along the way, they discover Stephen Starr’s myriad outposts, the lively bar and restaurant scene of Old City, and the Reading Terminal Market. The more adventurous tourists find their way to South Street and South Philly. Word of the mouth and the city’s growing reputation as a foodie mecca no doubt help lure many tourists from the chains. More than once I have bellied up to the bar at the Sansom Street Oyster House and shared a beer and some crustaceans with a shellfish-centric conventioneer.

But the chain invasion only will increase as the operators respond to financial imperatives driving them to big cities.

Companies with publicly traded stock control most of the restaurants, and they face the Wall Street exceed growth expectations or be punished by investors. With the over-chaining of the suburbs and the Interstates, their largest remaining growth area is downtown America. This represents a challenge to the managers because real estate and development costs in city centers far outstrip suburban strips. When cities underwrite the tourist economy with tax incentives these costs can be partially offset. The cheap, large unskilled labor pools found in urban areas also helps overcome pricey real estate.

Tourism development policies and Wall Street expectations paved the way for the chain invasion we see today. The results are lamentable and inevitable.

Edited June 17, 2004 by rlibkind (log)

[Holly Moore]

I don't have a problem with chains per se. Just mediocre chains. And, more so, the mediocre minds and gullets that patronize them. Given the choice of Subway or Chick's, Olive Garden or South Philly Italian, Chili's or Monk's, TGIF or Standard Tap, McDonald's or Tony Lukes, how can anyone who sees food as more than mere sustanance opt for chain fodder? But the chains are/will be packed.

Common wisdom says that these places exist as safe havens for tourists and suburbanites. If that is indeed the case, more power to them. Leaves empty seats at good restaurants for the rest of us. But I'm willing to bet that a count at the doorway of the soon to open Applebee's will tally far more Philadelphians who should know better than tourists.

I don't totally agree with you, Bob. I'm a lunch regular at the Palm and always quack at the Ducks as I scoot past them. Both these operations excel at what they do. And chains that come to Philadelphia and excel are assets to the city. The Four Seasons comes to mind.

[rlibkind]

No argument from me on any of the points you make, Holly. They wouldn't be around if they weren't patronized, and they wouldn't be around unless they do what they do well. What I omitted from my missive (and it buttresses your point) is that the growing permanent residential population of Center City also provides a "base load" for the chains.

I do find them lamentable, however, because of their economic impact. You rightly point out that the popularity of chains

[l]eaves empty seats at good restaurants for the rest of us.

But if there are too many empty seats, those good restaurants may close for lack of business. Their customer base has been drained away by the chains.

I've yet to make it to either The Palm or McCormick & Schmick, so perhaps they do serve snapper soup or fried oysters with chicken salad. But the invasion of the chains is unlikely to work toward the preservation of these regional foods.

[bleachboy]

Part of the allure of the chains to tourists is their familiarity. Those in a strange city welcome their sameness and reliability.

You've hit the nail on the head here. I've probably told this story before, but a year ago another couple and my wife and I were in NYC for a convention. Last night, dinner was at Nobu. The night before that, Daniel. Fine dining indeed. One guy I was with said, "I want some comfort food." No argument here. "Let's go to that T.G.I. Friday's" was the followup. The fuck you say!? You're in the city with the uncontentested best delis, diners, and pizza joints in the entire freaking world. There's no way in cold hell you'll drag me to a chain restaurant in NYC.

Needless to say, cooler minds prevailed, and I had a delicious chicken parm sub for dinner that night. But you're dead-on, Holly. The idea of being able to dine on chicken strips and the same exact salad you'd get in Nashville does indeed appeal to a huge portion of the populace. Heck, that's what made McDonald's number one, despite possibly the worst burger in the universe.

So clearly people aren't afraid -- we ate like kings at the nondescript diner we chose -- I personally think the problem is they don't have the balls (insert apropos female equivalent here) to check out the local greasy spoon. Holly, I know for a fact that you do have those balls.

So how do we change the world?

[rlibkind]

Even I've succumbed to the forces of evil, i.e., TGIF-like chains. But only when stuck in burgs where I've been unable to sniff out anything better and failed to find a place to make me a tuna sandwich to munch back in the hotel room.

Such were the hazards of working for the railroad and frequently traveling in the midwest for 20 years; there are plenty of good places to eat in that region of the country, but try to find one without guidance in Anderson, Indiana, at 10 p.m. on a Monday night. Indeed, for dinner, it's difficult in some towns because the decent cafes are open only for breakfast and lunch, or only on Friday and Saturday nights. (Praise the Lord for putting a Kewpee in Lima, Ohio, and Racine, Wisconsin. You gotta try 'em, Holly. They would be a worthy addition to your compendium. "Hamburg with the pickle on top/Makes your heart go flippity flop". I'll exempt tiny chains from my jeremiad.)

For all my ranting about the forces encouraging chains to grow in downtowns like Philadelphia's, their dominance has had its most ominous impact on the mom and pop restaurants of small town America.

[bleachboy]

For all my ranting about the forces encouraging chains to grow in downtowns like Philadelphia's, their dominance has had its most ominous impact on the mom and pop restaurants of small town America.

Damn right. And it sucks.

Maybe not so much so in the South, but I dunno. People are less and less frequently thinking of "that place on the corner" to go and have a mediocre, cheap meal. They are more and more thinking of going to Applebee's. Ugh. I'd rather eat at a local cafeteria or meat-and-three.

[SG-]

Here's my suburban perspective. Honestly mom and pop operations have been progressively faltering even before the build up of chains. Looks at all these little towns in the burbs, Norristown, Ambler, Lansdale, Jenkintown etc. There's not a heck of a lot going on lately nor has there been for probably a least the past decade. Are the chains to blame?

Produce for example, other than one or two places around me there is basically nothing worth bothering with before Whole Foods showed up. As much criticism as they get about their prices, where else can you get some La Colombe, epoisse or creme fraiche at 6pm on Sunday out here?? Can anyone honestly tell me that we have in the burbs any farmers market that really is worth going to? I have yet to see anything come even remotely close to the ones in Europe or Asia. I think Whole foods has done a GREAT job intoducing the possibilities of new and better quality choices than what's offered at the local supermarket chains.

Call me crazy but I think we Americans in general have not done a good job holding on to our traditions, but have instead chosen to adopt and accept the McMansion cookie cutter mentality as the norm.

My opinion is chains may in fact contribute to the revival of some of these towns. Lets say a TGIF and Outback opens up on the same block across the street from a United Artist Cineplex, guess what you're probably going to see the average joe heading to these destinations. The overflow from these restaurants will probably end up in local mom and pop restaurants. People being attracted to these cookie cutter chains may actually create new markets for mom and pops to thrive in.

[rockhopper]

No argument about the dismay of finding so many chains.

There are a few things to note.

There are people who don't care about food. When their tummies get growling it doesn't matter what to put in them; just do it fast and get it out of the way so they can do more important things. I don't understand this. Eating is one of the joys of life and one reason why we work all day/night.

There are um, what's a good label, picky, finicky, stodgy, heads encased in cement eaters. I have a brilliant friend who is the smartest person I've ever known. Chinese food means sweet and sour pork. Nothing else exists. When he orders it he runs down a list of how it "should" be prepared. He would break into a sweat at the thought of eating vietnamese or thai food. (actually I break into a sweat with thai food since I usually go for the 5 star heat level :) ). One of my minor successes was getting him to Tony Lukes on oregon. (He had a backup PB&J in the car just in case...). Roast Pork Italian (spinach and sharp provolone) cut in half and I didn't tell him what I was ordering (sit at that picknic table and Ill order). When I unwrapped it he said "im not that hungry, cut the half in half". So he ate about a fifth of the sandwich which IMHO puts philly in the eating pantheon.

Anyway, I don't thinks there is much we can do about the chains except not to spend our own money there.

[herbacidal]

There are people who don't care about food. When their tummies get growling it doesn't matter what to put in them; just do it fast and get it out of the way so they can do more important things. I don't understand this. Eating is one of the joys of life and one reason why we work all day/night.

Yup. I would posit that we have a culture that doesn't value food very much.

The constant immigration means some first generation immigrants and almost anyone beyond has already lost touch with much of their ethnicity, and much of what it values in food.

These first generation immigrants and beyond don't have this value for food that was inherent abroad. They either will eat to live, or develop their own stronger value for food (as in the case of Egulleteers and some others.)

Sure, FoodTV, magazines, and etc. have helped to change that slightly but not nearly enough.

Hell, the chain restaurants as a whole probably benefit more from the changing food culture than independent restaurants as a whole.

Call me crazy but I think we Americans in general have not done a good job holding on to our traditions, but have instead chosen to adopt and accept the McMansion cookie cutter mentality as the norm.

My opinion is chains may in fact contribute to the revival of some of these towns. Lets say a TGIF and Outback opens up on the same block across the street from a United Artist Cineplex, guess what you're probably going to see the average joe heading to these destinations. The overflow from these restaurants will probably end up in local mom and pop restaurants. People being attracted to these cookie cutter chains may actually create new markets for mom and pops to thrive in.

I agree on both counts.

Whether or not the general public has earned an adquate return on its investment is arguable, but the success of the tourism development campaign created a critical mass of potential diners for the chain restaurant operators. Although Center City may lack the parking ease of strip malls astride the Interstate, the presence of thousands of hungry tourists and conventioneers proved irresistible to the group owners.

Also correct. I see parallels to the rebirth of neighborhoods around Philadelphia such as Baltimore Ave. area, Fishtown, various parts of South Philly, etc.

The word "gentrification" is used to indicate that the people who started renting homes in the neighborhood early on and fixed it up, started businesses, etc. are being forced out by the rent increases and land speculation brought on by the improvements that they made to the neighborhood.

There are parallels here, as independent restaurants were the only ones willing to invest in a neighborhood early on. When they become successful, they've helped to create a mass of customers which is attractive to everyone, but whom the large chains can best afford to cater to.

The phrase (can't call it a quote because I don't know if I got all the words right)

"Every revolution eats its young" comes to mind.

Edited June 18, 2004 by herbacidal (log)

[stephenc]

Doesn't bother me in the least, because I don't know a single local resident who eats at the Olive Garden anyway. Our local restaurants will be fine.

[Lisa1349]

always quack at the Ducks as I scoot past them.

I scoot past them every morning, after I realize how it should be illegal and punishable by watching a lifetime of Barny re-runs, to give 100 6 year olds duck whistles.

[Andrew Fenton]

I do find them lamentable, however, because of their economic impact. You rightly point out that the popularity of chains

[l]eaves empty seats at good restaurants for the rest of us.

But if there are too many empty seats, those good restaurants may close for lack of business. Their customer base has been drained away by the chains.

I can't get too worked up about the "chain invasion". Philadelphia is a big city, with a big restaurant ecosystem, and I don't see any empirical reason to believe that independent restaurants are being pushed out by chains. At the same time that these chains have been opening up in Center City, there have been even more new, independent restaurant openings in the same area. And you know what? The good ones, at least, seem to be doing well. So I don't really see the problem.

[Scoats]

I find the coming of chains to be disappointing as well. And sometimes one is forced to eat at one, like for example a work lunch, or when you don't want to appear too difficult on a 2nd date.

A few years ago, it was considered a coup that the Rendell admin got a Hard Rock Cafe to come to town. And Hard Rock appeals the suburaban day-tripping tourists very much. While such a thing is such a horrible shame when there are so many great local restaurants, the truth is those folks aren't going to go to them. Is it much worse that folks are going to Applebees rather than a tourist trap like Old Original Bookbinders?

I cannot think of any independent downtown restaurants that stress they are kid friendly. I recall from my Zaberer days, they advertised that fact heavily. If you are a out of town parent, where are going to take your family? There seems to be a niche for a family friendly independent restaurant downtown.

I think well run independent restaurants will continue to do OK with people who care about good food. Lesser operations will definitely feel the pressure. I suspect the replaciement of a medicore local restaurant by a medicore chain restaurant is somethng that won't affect folks like us, who avoid medicore plans local or chain anyway.

And those of us who search out great local places may be well served in a strange city if the medicore local places are gone and only the better ones are left.

[Andrew Fenton]

Here is a link to an opinion piece on this topic, from Monday's Inquirer.

The problem with the critics is that they do not understand the significance of the influx of chain restaurants into Center City, which actually has been going on for quite some time. Their presence is an affirmation of Center City's strength as a dining destination and of its attractiveness to visitors from beyond the region who want to dine near our tourist attractions.

[stanpnepa]

There's only one Liberty Bell...and there's only one Django. See cities for what makes them unique.

Great parody scene in "Super Size Me" about suburbia. It's a mini-cartoon that resembles the old scenes in the Flintstones when Fred would drive the car. You'd always see the background repeat every four or five seconds (cheaper animation, right). Well, in this parody, you'd see a Walmart, A McDonald's, a Home Depot, a Walmart, a McDonald's. Pretty damn funny...and true.

[MarketStEl]

First, I'd like to thank Andrew for both posting a link to my Inquirer essay and introducing me to this forum. (I do have the rights to reproduce this essay online and will post it to my own web site in the next few days. That way, anyone who stumbles across this discussion will be able to see it without charge after the seven-day free access expires on philly.com.)

I would like to comment on my own commentary. If I had to write it again, I would still write it just the way I wrote it, but add one more comment--namely, that we locals should try to turn the tourists on to really good local eateries when we stumble across them.

To that end, I'm off to look over the "Good places to eat in Philadelphia?" thread.

I should, however, note that I've eaten at both chains and local restaurants. (You might have gathered that already from the tone of my essay.)

[KatieLoeb]

Welcome Sandy!! And thanks Andrew, for helping with recruitment responsibilities.

Sandy, I hope you'll be able to drop in and help instigate discussion here. The voice of local journalists is one that we definitely welcome. Looking forward to having you around and I hope you'll have time to join us for one of our DDC or Pizza Club forays.

[Andrew Fenton]

I'll second that "welcome, Sandy!" Looking forward to hearing your perspective- on chains, or anything else.

Katie: anything to help the team. Still working on getting those microchips to implant in new recruits'...

...er, best not to talk about that here.

[slbunge]

Though I know that this thread is focused on Philadelphia, I see the same thing in Minneapolis and Boston where I spend a lot of time. Oddly, Milwaukee has the chain thing going on in the suburbs and the downtown restaurant scene is very home grown.

I'm not interested in these restaurants because when I travel, the last thing I want to eat is something I can get replicated (exactly, mind you) at home. That said, I think that I (and Holly and bleachboy and many others here) are the exception and not the rule.

I guess I don't have a problem with the chain invasion in theory but I get a little prickly when the big corporate entities work hard and are successful getting local governments to fund their moves into center city. Seems like local money should go to public works that make the centers of cities more desirable drawing the crowds that make it attractive for chain restaurants to move in to capitalize on these people who are their demographic. That way, if a chain fails (and they sometimes do) the public still has the nice landscaping, improved sidewalks, etc.

Perhaps the city fathers/mothers are smarter than I am and understand that the TIF money is well spent. But things aren't right unless we all play the armchair politician once in a while.

[MarketStEl]

I guess I don't have a problem with the chain invasion in theory but I get a little prickly when the big corporate entities work hard and are successful getting local governments to fund their moves into center city. Seems like local money should go to public works that make the centers of cities more desirable drawing the crowds that make it attractive for chain restaurants to move in to capitalize on these people who are their demographic. That way, if a chain fails (and they sometimes do) the public still has the nice landscaping, improved sidewalks, etc.

My impression from having traveled through several outlying commercial districts within Philadelphia that have received the kind of streetscape improvements you describe is that those alone will not draw people back to declining districts. You need to give them a reason to come, and those reasons usually come from adventurous people willing to risk something.

Philadelphia's much-vaunted "restaurant renaissance"--which began in the 1970s and is directly responsible for the city's recent reputation as an excellent restaurant town--can be traced to a few plucky ex-hippies who decided to follow their hearts and open a restaurant on a faded commercial street that had been slated for demolition to build a freeway. The freeway was canceled, and just about everyone in Philadelphia can tell you what became of South Street after that. No city money that I know of went into the transformation of South Street into the Boardwalk of Center City, and the owners of the Knave of Hearts didn't get any Keystone Opportunity Zone designations or 10-year tax abatements.

I'm all for doing whatever it takes to keep our center cities vibrant, but I'm becoming increasingly convinced that the government is not really all that good at choosing in advance the things that will advance that goal.

[Andrew Fenton]

Though I know that this thread is focused on Philadelphia, I see the same thing in Minneapolis and Boston where I spend a lot of time. Oddly, Milwaukee has the chain thing going on in the suburbs and the downtown restaurant scene is very home grown.

Is that so odd? Seems to me that chains everywhere seem to dominate in suburban locations. That's the stereotype, anyway.

[SG-]

My opinion is that people move out to the burbs because they're looking for the same monotonous, predictable lifestyle (me being the exception of course!! ). Hence very attractive for the chains.

I remember reading that H&M had to pare down offerings in the suburban stores because people were turned off by their edgier fashions.

Having said this, it's unfair to blame the corporations because they're really giving the public what they want. As for mom and pop restaurants in the burbs, honestly other than a handful of adventurous folks most of them are crap.

[cinghiale]

I don't have a problem with chains per se.  Just mediocre chains.  And, more so, the mediocre minds and gullets that patronize them.  Given the choice of Subway or Chick's, Olive Garden or South Philly Italian, Chili's or Monk's, TGIF or Standard Tap, McDonald's or Tony Lukes, how can anyone who sees food as more than mere sustanance opt for chain fodder?  But the chains are/will be packed.

Common wisdom says that these places exist as safe havens for tourists and suburbanites.  If that is indeed the case, more power to them.  Leaves empty seats at good restaurants for the rest of us.  But I'm willing to bet that a count at the doorway of the soon to open Applebee's will tally far more Philadelphians who should know better than tourists.

I don't totally agree with you, Bob.  I'm a lunch regular at the Palm and always quack at the Ducks as I scoot past them.  Both these operations excel at what they do.  And chains that come to Philadelphia and excel are assets to the city.  The Four Seasons comes to mind.

←

I ate at ¡Pasion! last night, and walking in, I noticed that the big-ass neon sign for Applebee's had gone up on the old Bookbinder's. Shite, I say. OK, so the food got progressively crappier. Still, it was memorable for me back in the 80s when I worked across the street, so I pine.

I googled to find out wassup, and while failing to locate anything current, I did read with interest two PhilaBizJournal pieces:

Failed Plan for Temp-Controlled Wine Store

Sign Preservation

[herbacidal]

Though I know that this thread is focused on Philadelphia, I see the same thing in Minneapolis and Boston where I  spend a lot of time.  Oddly, Milwaukee has the chain thing going on in the suburbs and the downtown restaurant scene is very home grown.

Is that so odd? Seems to me that chains everywhere seem to dominate in suburban locations. That's the stereotype, anyway.

←

I'd definitely say chains dominate in suburban locations.

I'd also say that chains do pretty well in urban locations as well.

Maggiano's in Philly, Olive Garden and others in Manhattan.

I'd say chains do better in urban areas than independently-owned places do in

the suburbs, on average at least.

[Holly Moore]

It's too hot today to muster the effort to read through this entire thread to see if anyone has yet pointed out the collateral damage done by the chains coming to Center City Philadelphia.

The rents for commercial spaces are staggering because chains seem glad to pay whatever rent it takes to get a certain space. Beyond that, all other things being equal, the landlords and realtors favor tenants with the deep pockets of the chains as opposed to the deep debt of the entrepreneurs. Not just restaurants, but all manner of retailers. Compounding things - South Delaware Avenue's burgeoning strip mall killing off the local hardware stores, movie theatres, furniture stores and many other retailers.

I don't envy today's aspiring entrepreneur.

Edited August 5, 2005 by Holly Moore (log)