When a neighborhood doesn’t want a budget version of Whole Foods

Whole Foods has selected a LA neighborhood for its first Whole Foods 365 and residents are not happy:

Let’s take a quick trip to Los Angeles’ bourgeois-hip Silver Lake neighborhood, where more than a few residents are up in arms over Whole Foods’ recent decision to not go through with a planned full-service Whole Foods but rather to build the first store in the chain’s new line of budget outlets aimed at millennials, 365 by Whole Foods Market. “Whole Foods! We want the REAL thing,” reads a Care2 petition recently posted by neighborhood resident and music executive Dawn White. “People in this neighborhood are desperate for a local high end market with the best quality foods, which are often not the 365 brand,” White wrote. Online, commenters began to call the proposed store “Half Foods.”

What is behind this reaction?

Silver Lake is not the first nor likely the last enclave where residents are literally begging for a Whole Foods. Online petitions asking for stores frequently read like crosses between market research reports, sales pitches, and letters from spurned would-be lovers. “Between the families, the young professionals, long-time residents and university students in the neighborhood, we have more than enough demand to satisfy Whole Foods,” went one 2013 plea out of Washington, D.C. As for White, her missive told the organic superstore that it was “wholly wrong” about who lived in the neighborhood. “Residents of this neighborhood can afford this,” she added.

In a world where all too many people define themselves by what they can afford to purchase and do actually buy, Whole Foods gives the sort of person David Brooks so memorably labeled bobos, short for bourgeois bohemians, validation, not to mention a bit of convenience in a busy life. It endorses that decision to drop more than $800,000 on a tiny two-bedroom Spanish or craftsman bungalow with a Viking stove or a Brooklyn brownstone that’s located near a Superfund site. A local Whole Foods is a stamp of approval from the United States’ greater corporate culture, but one that at the same time allows the people who crave it to still believe they remain just a bit outside the mainstream.

Up and coming or hip or gentrifying neighborhoods are interesting places. On one hand, they want to live on the edge with lots of cultural opportunities and relatively cheap housing. They don’t want to be conventional, typically associated with higher incomes and less nightlife. They want to be authentic, gritty, and real. On the other hand, they often want to have some markers of their success as well as amenities. This could come in the form of Starbucks, rising housing values, or even grocery stores. The presence of these upscale places or items hints at the wealth in the neighborhood and suggests it is a place worth investing in.

But, these two competing forces are difficult to reconcile. Is having a Whole Foods hip? What kind of people shop there as opposed to those who shop at budget grocery stores? Do national retail chains hint at rising land values, eventually putting pressure on lower-income residents to move? There are likely more neighborhood discussions to come as residents try to exert their influence in the direction they would like their community to go.

More Americans eating at home

One of the questions to emerge out of this recent recession is which pre-recession patterns will return once the economic climate improves. One report suggests that although spending levels have increased again, eating at home might be a more permanent pattern:

Restaurants traditionally have led other types of businesses out of a recession. This time, they’re at least a year and a half behind retailers. Sales of clothing grew 5 percent last year and autos rose 11 percent, as Americans started feeling better about their finances. At casual sit-down restaurants like Outback Steakhouse, the increase was just 1 percent. Some analysts say that could be the new norm…

Americans lead the world in restaurant spending. About 44 percent of food dollars are spent outside the home — a figure that started rising sharply in the 1970s, as more women joined the work force. Full-service restaurant revenue rose 5 to 7 percent a year in the decade leading up to the Great Recession, which halted growth. Over the next decade, visits to restaurants are forecast to increase less than 1 percent a year, according to the NPD Group. That’s less than the population will grow.

Instead of handing their money over to mediocre eateries during the week, people are saving up for the occasional nice meal, says Stifel Nicolaus analyst Steve West. Meanwhile, cooking has become hip, says Rick Smilow, president of the Institute for Culinary Education, where registration for recreational courses was up 10 percent last year.

It would be interesting to see more data on this: how many of these meals at home are made out of mostly fresh ingredients? What kind of food are people spending money on – taking that restaurant money to buy more expensive items or trying to eat on the cheap? How much less are people spending on food overall as they eat out less?

The perception about eating at home might be crucial. The idea that cooking is now “hip” could be tied to a number of factors including more upscale grocery stores (the equivalent of shopping at Whole Foods versus Wal-Mart), a number of celebrity chefs, and around-the-clock cooking shows. Eating at home may be good for the financial bottom line but it will appeal to a lot more people if it is cool.