Over the years State Street and the surrounding area have attracted more chains owned by corporations and privately owned, out-of-state businesses. That trend continued this fall as Chipotle, 658 State St., a national chain originally based in Denver, and Nogginz Hair Shop, 524 State St., part of a chain of stores based in Michigan, opened their doors.
Now some local merchants are raising concerns that the street is becoming too clogged with chains, which they said detract from the character of the street and also drive away independent owners who can't compete financially.
\If we are just a street full of chains then we become Anywhere, U.S.A.,"" said Susan Schmitz, president of the advocacy group Downtown Madison Inc.
No one has kept a consistent inventory of the street over the years, making it hard to judge the extent of chain development, according to Peggy Yessa of the City of Madison Office of Business Assistance.
And appearances may be deceiving. Discount Records, 651 State St., recently changed its sign to Sam Goody, which had already owned the store for over 20 years. The new Heartland Birkenstock store, 414 State St., may look like a national chain or franchise, but is actually a completely independent, locally owned store licensed to sell the international Birkenstock brand.
But Greater State Street Business Association President Sandy Torkildson, who has operated A Room of One's Own Bookstore, 307 W. Johnson St., for 28 years, said she has seen the changes first hand and is concerned.
Independent stores do not have the same kind of capital as chains do to pay the rising costs of rent, taxes and renovation of the buildings on the street, Torkildson said.
""It's very hard for small businesses,"" she said. ""We don't go out and sell stock. If [property] assessments increase because of development, it does drive out small retailers.""
Not so, said Nathan Heeney, manager of Chipotle. The restaurant took a lot of flak when it opened because of its connection to McDonald's, which is the majority investor in the company, Heeney said, but the store did not antagonize independent merchants.
""We started as one single store, and because we've done really well, it has allowed us to grow,"" Heeney said. ""It's not that we've muscled people out.""
However, some smaller merchants did leave the street because of the influx of restaurants, which tie in directly with the increasing presence of chains, according to Schmitz.
Although she said her data is not comprehensive, Schmitz said the number of restaurants on the street, the majority being chains, increased from 66 to 80 from 1997-'98 to July 2002.
""There's concern that [State Street] is becoming a food court,"" she said.
Merchant A. J. Schwegel, owner of Madison Music Company, 4253 W. Beltline Highway, which left its location at 414 State St. last spring, said he left in part because of the influx of restaurants on the street.
""It's turning into an entertainment district ... rather than being a collection of unique and local shopping stores, you know, like our own,"" he said. ""I think you've seen a lot of merchants vote with their feet by leaving. So many of them leave, [and] they're never going to come back.\
