Despite downturn, chains still growing

> 30% of 167 chains expanded in NYC in the past year

> Strong brands, franchise entrepreneurs behind rise

 

 

A T.G.I.F. is replacing a vegetarian place on Union Square and will be neighbors with a Tim Horton’s. A Subway just opened in an old hosiery shop on the Lower East Side. The recession has not shackled chain stores.

In the last year, 30 percent of 167 national retailers expanded in New York City, bucking the economy, according to a report by the Center for an Urban Future.

“A lot of these national chains ... are taking advantage of cheaper real estate,” Jonathan Bowles, the Center’s director, said.

Dunkin’ Donuts led all with 88 new locations in the last year. Starbucks closed a handful of spots, but had a net gain of 23 stores.

Some lament that chains are wiping out mom-and-pops, but Mark Jaffe, president of the Greater New York Chamber of Commerce sees the numbers as a testament to the “spirit of entrepreneurialism,” as franchise operators open in outer boroughs or invest in second stores.
When loans are hard to come by, people may be willing to spend life savings on a proven model, he added. “It seems like brand names may rule.”

Not all chain stores are thriving. AT&T Wireless lost 26 stores. Circuit City filed for bankruptcy.