New York City Fosters Debate Over Chain Stores

Date: April 21, 2015

Rise Of Chain Stores Engenders Controversy

As New York City attracts more national chain stores, some community advocates and city legislators are pushing for laws to protect independently-owned companies. Echoing concerns that have been raised in cities across the country—and indeed the world—many of New York City’s unique small businesses have been replaced with chain stores. Chains have engendered debate in communities since their widespread emergence in the last century on the grounds that the small businesses they replace have better impacts on their local communities. New York City now has more than 800 combined Starbucks and Dunkin Donuts franchises, in addition to many more chains from other brands. As a result, some members of the Council want to pass legislation to, among other things, make it harder to kick out an existing small business lease-holder from its existing location. That initiative is separate from a bill proposed last month by Councilwoman Margaret Chin that would create the position of a “small business advocate” within the City’s Department of Small Business Services. “Small businesses are a foundation of New York City’s vibrancy and diversity, and this legislation will allow us to take powerful strides forward in protecting and supporting those businesses for generations to come,” said Chin, a Manhattan Democrat. “We’re laying the groundwork for historic advances to help make sure small businesses can survive and thrive amid a constantly changing business environment.”

What Happens Next

The City Council’s proposals are in their early stages and have yet to make their way to the mayor’s desk. Some of them have not had legislative language drafted yet, meaning they could ultimately evolve in any of several directions.

What This Means For Small Business

While many of the proposals would benefit New York City’s independent businesses, there is a risk that new layers of regulation could increase the burdens that some small business owners face. The creation of a small business advocate could be a win for small business owners facing undue administrative burdens from city government.

Additional Reading

The AP and Crain’s New York Business also cover small business advocacy in New York City.

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