Recruiting retailers is a delicate balancing act. Chain stores are reliable profit makers, and they’re coveted by landlords. Yet too many cookie-cutter establishments can make a downtown feel less than unique.
A handful of cities are passing rules to limit the number of national retailers that can set up shop downtown. San Francisco is the largest city to establish such a rule, although Boston officials have also explored the possibility.
Restrictions are mostly being enacted in smaller cities such as McCall, ID (pop. 3,278), Sausalito, CA (pop. 7,125), and Bristol, RI (pop. 22,305).
Many downtown leaders and the nonprofit Institute for Local Self-Reliance (ILSR) say cities can boost their home-grown businesses by enacting limits on so called “formula businesses” — chains with identical locations, such as Dunkin’ Donuts or Dominos.
“It’s really important to have a diverse mix of businesses — businesses that meet local needs, that are operated locally, that have a unique feel,” says Stacy Mitchell, co-director of ILSR.
Mitchell says about three dozen cities have enacted formula business rules. But for such an ordinance to pass legal muster, it must avoid discriminating against business operators.
More on restricting formula businesses appears in the November issue of Downtown Idea Exchange. Click to learn more about Downtown Idea Exchange and other resources for revitalizing downtowns and commercial corridors.