New grocery stores, eateries change landscape

The grocery and restaurant landscape here has shifted noticeably in the past year but some of the most popular brands are keeping their distance from Dutchess County. An aging, shrinking population, chain saturation and that our marketplace is sandwiched between more attractive Westchester County and the Capital District may be to blame.

Last year, the Journal asked readers what chain restaurants and grocery stores they wanted in Dutchess. Hundreds responded, calling for specialty grocery stores such as Trader Joe's, Whole Foods Market and Wegmans supermarkets as well as restaurants such as White Castle, Chipotle, Golden Corral, Chick-fil-A and The Cheesecake Factory.

On the restaurant front: Only Chipotle and Golden Corral from the wanted list were among the sea of chains that have opened or plan to open. Other introductions to the market included Hardee's, Texas Roadhouse, Popeyes Louisiana Kitchen and Tilted Kilt.

As grocery stores go, Tops Friendly Markets and Acme Market have opened their first stores in the county. Both chains replaced other grocery stores and provide similar offerings to supermarkets already in the area. Adams Fairacre Farms remains the dominant presence for specialty groceries, local produce and high-quality ingredients with four stores. 

READ MORE: WHY WON'T Wegmans & some restaurants come to Dutchess?

Despite Adams Fairacre Farms' strong reputation, some shoppers crave more options in the mid-Hudson Valley.

"I think the Hudson Valley would be the perfect audience for Trader Joe's," said Teri Bettencourt, of Hyde Park. "A lot more people are looking for different, healthy, fun food alternatives."

Chains seek a high population of young, affluent, educated customers when choosing locations to open, said David Livingston, a supermarket site analyst based in Wisconsin. Whole Foods, for example, looks at the density of college-educated people in a population when choosing store locations, a store spokesperson has said.

"I will say, we do have a strong local competitor, Adams Fairacre Farm, in this market space," said Frank Castella Jr., president and CEO of the Dutchess County Regional Chamber of Commerce. "Adams fills a great majority of the market need in this space and (Wegmans, Whole Foods and Trader Joe's) may not want to compete with such a strong, local brand that does a terrific job in our area market."

It’s taken Wegmans 100 years to get to 90 stores, Livingston said. "They are slow and methodical, and they will be busy over the next five years with markets that take priority. The same for Trader Joe’s and Whole Foods — they don’t expand rapidly and are really slow to grow."

Most of the culinary niches within Dutchess County already have been filled, said Bill Guilfoyle, associate professor of business management at the Culinary Institute of America in Hyde Park. A White Castle may not be suitable in an area that already features McDonald’s, Burger King, Wendy’s, Five Guys and Hardee’s.

Despite the interest in these chains, success isn't guaranteed. Sonic Drive-In in the Town of Wappinger closed in September. The restaurant, best known for its carhop servers, opened in September 2009.

READ MORE: Wappinger Sonic Drive-In closed 'permanently' 

Dining trends

The recent influx is a good sign economically for the area, said Janet Irizarry, owner at JI Restaurant Consulting. Since 2008, there was a "void in the area regarding many major franchises," Irizarry said. "Because there was a void, we're starting to see a lot of these chains popping up now."

This, in part, could have resulted from the Hudson Valley's culinary status.

"For a while, there was a nervousness among chains due to the proximity of The Culinary Institute of America and a focus on local restaurants in the area," Irizarry said.

But Guilfoyle argues Dutchess County is experiencing a shift in the types of restaurants opening.

"Casual sit-down chains are losing ground to the fast-casual concept," Guilfoyle said.

Even before this year’s boom, fast food restaurants were growing in Dutchess County, even outpacing full-service restaurants. The number of fast food restaurants in the county increased from 183 in 2007 to 227 in 2012, a 24.04 percent change according to data from the United States Department of Agriculture Economic Research Service.

At the same time, the county’s full service restaurants increased from 302 in 2007 to 345 in 2012, a 14.24 percent increase, according to the data.

Demographics dictate growth

Restaurants and grocery stores seeking a large base of young customers may be turned off by population trends in the area.

Dutchess County faces a declining population, dropping from 297,448 in 2010 to 295,754 in 2015, according to U.S. Census data. The population is also aging, with a decrease in people under 18 from 22.2 percent in 2010 to 19.8 percent in 2015 and an increase in the percentage above 65, from 13.5 percent in 2010 to 16 percent in 2015, according to Census data.

Westchester County has more than triple Dutchess County's population at 976,396, according to the Census. Of this, 22.7 percent were under 18 and 15.8 percent were older than 65.

Affluence is another major factor where Dutchess falls behind.

Income per capita in the county for 2014 was $33,962, up from $23,940 in 2000, according to the Census. But Westchester touted a per capita income of $48,487 for 2014.

Restaurants and stores also track education in a potential market, particularly for college-educated customers.

In Dutchess County, 33.4 percent of residents aged 25 or older earned a bachelor's degree or higher, compared to 46 percent of Westchester residents, according to census data.

Shopping options

With the introduction of Tops Friendly Markets and Acme Market in the past year, Dutchess County is home to eight major supermarket chains, including Stop & Shop, ShopRite, Hannaford, Aldi Food Market, Price Chopper and Adams.

Tops Friendly Markets opened stores in Rhinebeck, New Paltz, Wappingers Falls and LaGrangeville in August and Acme Markets opened stores Pleasant Valley and Hopewell Junction earlier this year. Each of these stores replaced an established supermarket at the location.

Following the merger between the parent company of Stop & Shop, the Netherlands-based Ahold Group, and the parent company of Hannaford, the Belgium-based Delhaize Group, the supermarkets divested 86 stores in markets where Stop & Shop and Hannaford operate. Tops purchased three Stop & Shops and one Hannaford.

READ MORE: Tops opens in Rhinebeck, 3 more to open in area

READ MORE: LaGrangeville ShopRite set for spring opening 

Acme Markets acquired two former A&P Supermarket locations after that company declared bankruptcy in 2015.

At the same time, specialty and popular stores such as Trader Joe's, Wegmans and Whole Foods have demonstrated no plans to move into the area. Representatives from the stores did not return requests for comment.

Danny Wegman told the Journal News for a special report in December the chain has been itching to open in Westchester County, but hasn’t found the right spot.

“We’ve been looking for over 20 years,” he says. “Hopefully, someday, we’ll find one. We’d love to be there. We’ll get there. We’re pretty tenacious. That’s all I can say. Wish we had one there.”

Westchester already has White Castle, Chipotle, Trader Joe's, Whole Foods and other stores and restaurants Dutchess does not.

A move for Wegmans would require "a whole new division of at least five stores" to open up in the region, Livingston said. Opportunities in Boston, New York City, Washington D.C., Baltimore and North Carolina are more compelling than trying to open in the mid-Hudson Valley.

"Whole Foods and Trader Joe's are always in demand so the best way to get their attention is for cities to pick up the tab on everything from land, construction, and taxes," Livingston said. "If the taxpayer offers to pick up the tab for everything, it would surely wet their beak."

It's the distinction between specialty stores and traditional supermarkets that makes stores like Trader Joe's attractive to the area, Bettencourt said.

“We probably already have enough of the super chain grocery stores, but both Wegmans and Trader Joe’s are more specialty stores,” Bettencourt said. “I think they would find a market here.”

Mckenzie Bishop, of Hyde Park, agreed that options for grocery shopping were lacking in Dutchess County.

"I'd say we're in desperate need of different grocery stores," Bishop said. "I'd love to see a Healthy Living Market or Whole Foods or something similar."

Yet Keith McGrath, of Poughkeepsie, argued grocery stores in the area already meet shoppers' needs.

"I like to think that there are enough grocery stores spread out in the Poughkeepsie area," McGrath said.

New restaurant options

Hardee's opened its first Dutchess County restaurant in February. Prior to the opening in the Town of Poughkeepsie, customers would need to travel 19 miles north to Kingston.

The opening reflects the restaurant's decision to move into the Northeast, according to Hardee's regional marketing manager Kyle McTavish.

Texas Roadhouse opened its first Dutchess County restaurant in the Town of Poughkeepsie on Oct. 31.

READ MORE: Hardee's opens to delight of burger lovers  

READ MORE: Texas Roadhouse set to open next week 

And there are more restaurants heading to Dutchess County, with Golden Corral and Popeyes Louisiana Kitchen expected to open in 2016 in the Town of Poughkeepsie.

Tilted Kilt is also aiming for a December opening in the Town of Poughkeepsie. Chipotle Mexican Grill is expected to open in Fishkill next year.

It's not just a matter of variety, but quantity when it comes to chains. There are 13 McDonald's and six Taco Bells within 15 miles of the City of Poughkeepsie.

For Christy Seregely, of Fishkill, the area's biggest gain in regard to chain restaurants is Chipotle.

"(Chipotle) continues to seek ways to better their foods," Seregely said. "Whether it's finding the best ingredients, quality-wise, no artificial flavors or fillers, sourcing from farms instead of factories or no GMOs."

READ MORE: Chipotle looking toward summer 2017 opening 

READ MORE: Golden Corral opening delayed to November 

Guilfoyle said the influx of chain restaurants does not necessarily mean a trend. Rather, it may demonstrate the natural expansion for these particular brands.

"It seems like these restaurants are simply testing the waters in our area," Guilfoyle said.

The area also has seen local-owned restaurants opening, including Essie's Restaurant, The Poughkeepsie Grind, Craft Burger, Athena Gyro and Morty's Kosher Style Delicatessen.

Geoffrey Wilson: gwilson@poughkeepsiejournal.com, 845-437-4882, Twitter: Geoff_LW 

More online

To see a video report, go to PoughkeepsieJournal.com.

Closest stores

The list below contains several grocery and restaurant businesses and the distance from their nearest stores to the City of Poughkeepsie as calculated in Google Maps.

Moe's Southwest Grill

Modena…21.5 miles

Trader Joe's

Danbury, Connecticut…37.4 miles

Whole Foods Market

Danbury, Connecticut…40.8 miles

The Cheesecake Factory

Danbury, Connecticut…41.1 miles

Chick-fil-A:

Danbury, Connecticut…41.3 miles

White Castle

Nanuet…65.7 miles

Wegmans Food Markets

Montvale, New Jersey…69.2 miles

Tim Horton's

New Rochelle...71 miles

Krispy Kreme Doughnuts

New York City…80.4 miles

Fuddrucker's

Parsippany, New Jersey...83.2 miles

In-N-Out

Rockwall, Texas...1,592 miles

Readers' top eight businesses

In 2015, The Poughkeepsie Journal asked readers what restaurants and grocery stores they wanted to see in Dutchess County. Here are the most popular answers and the number of comments that mentioned them.

Trader Joe's…135

Whole Foods Market…57

White Castle…53

Wegmans Food Markets…41

Chipotle…40

Golden Corral…30

Chick-fil-A…27

The Cheesecake Factory…20

What we got

Several chain restaurants and grocery stores have opened in Dutchess County since the Journal's original story on the lack of chains in the area. Since then, the following chains have opened.

Acme Markets: Opened late 2015 in Hopeweel Junction and Pleasant Valley

Hardee's: Opened in January in the Town of Poughkeepsie

Top's Friendly Markets: Opened in August in Rhinebeck, Wappingers Falls, LaGrangeville and New Paltz

Texas Roadhouse: Opened in October in the Town of Poughkeepsie

Tilted Kilt: Set to open in December in the Town of Poughkeepsie

Golden Corral: Set to open in November in the Town of Poughkeepsie

Popeyes Louisiana Kitchen: Set to open in 2016 in the Town of Poughkeepsie

Chipotle Mexican Grill: Set to open in summer 2017 in the Fishkill