What’s stopping Merced from getting Trader Joe’s, Chick-fil-A or other big chains?
At the beginning of every year, City of Merced officials listen to the community’s priorities during a series of town halls to receive input in anticipation of planning for upcoming goals and projects.
This year, one message rang particularly loud: Merced residents are hungry to “Eat Mor Chikin.”
“Economic development was by far and away the area that got the most attention,” City Manager Stephanie Dietz said of community feedback at a recent town hall. “Overwhelmingly, Chick-fil-A was the number one requested business.”
Will Merced become home to one of the nation’s largest fast food chain’s more than 2,000 restaurants?
It’s possible, said Economic Development Director Frank Quintero.
Chick-fil-A has looked at Merced in the past and even considered possible sites, Quintero said. And local interest in the restaurant is nothing new: a 2013 Facebook page campaigned to bring the chain and its signature waffle fries and sandwiches to the Gateway to Yosemite (or, the Gateway to Chick-fil-A, as the campaign suggested).
But the growing city still doesn’t quite check all the boxes for the business to establish a presence just yet.
“They like Merced,” Quintero said of the restaurant chain. “We’re just not at that point where they’re ready to develop a store in Merced yet.”
‘Momentum is definitely in our favor’
The hurdle to open a Chick-fil-A is similar to that of the city’s other major business on its wish list. Residents have for years requested that a Trader Joe’s grocery store become a fixture in Merced.
Although staff regularly meet with Trader Joe’s representatives, population density within the city limits has stayed below the 100,000 threshold preferred by the company, Quintero said. But growth is trending in the right direction to clear that hurdle, as are other positive signals like the city’s number of students and income levels, he said.
Often asked by residents to bring certain businesses to Merced, officials frequently answer that the issue can be complex to address from a staff-level because private property decisions are not dictated by the city. The city’s job is to market Merced attractively so that private retailers have incentive to develop, Quintero said.
In many ways though, recent projects, trends and indicators have built momentum for marketing Merced to chains like Chick-fil-A, Trader Joe’s and more.
UC Merced, which City Council recently voted to annex, as well as its associated students and faculty are a huge perk for prospective businesses, Quintero said. Another good sign for developers is that permits issued for single-family units have broken records two years in a row.
And investments made in downtown Merced have received national attention, like the December mention of the El Capitan Hotel in Forbes.
These promising signs have led a number of businesses to look to Merced as fruitful ground to grow a promising new presence, Quintero said — without disclosing any developing details. “We’re on our way to a transitioning commercial market,” Quintero said.
Two major commercial center projects currently in the works are Gateway Marketplace and Campus Parkway Plaza, each near Highway 99 and the Campus Parkway route to UC Merced. Another developing commercial site is at Yosemite and G streets. The three sites will aid in recruiting a variety of new different retailers.
Plus, despite the COVID-19 pandemic, new stores like Ashley Furniture Store and Coconut Cafe opened doors in the city. Best Buy is in the process of re-opening its doors after exiting its prior Merced location.
Another positive indicator? The increasing number of Starbucks in Merced. The latest R Street addition marked the coffee giant’s sixth local location — a trend that could signal that private industry associated with higher paid and skilled jobs may look to Merced with interest.
Technology companies have used the number of Starbucks as a litmus test for a community’s ability to maintain high-tech industries, Quintero said. “That’s where they sit down, that’s where they network, that’s where they use the back of a napkin and come up with the next great idea,” Quintero said.
Meanwhile, other big regional projects like the ACE commuter train and high speed rail, Campus Parkway Project to UC Merced, the university’s plans for a medical school, and burgeoning self-driving vehicle testing at the former Castle Air Force Base are upping the appeal for high-tech industry to put down Merced roots.
Regardless of what businesses Merced residents are hoping to see in the city, Quintero urged residents to spend their dollars locally as often as possible. Doing so continues Merced’s positive momentum and signals positively to developers considering the city.
“Our numbers need to be a little better,” he said. “Try Merced first.”
This story was originally published March 15, 2021 at 7:00 AM.
