For Subscribers

Breaking the Chain A declaration of independents against chain restaurants

By Judith Potwora

Opinions expressed by Entrepreneur contributors are their own.

As chain restaurants extend their reach into urban locales,independent restaurant owners say the best way to protect theirturf is to join forces against the chains.

"The independent restaurant share of the dining-out pie isgetting smaller and smaller," says Don Luria, president of theCouncil ofIndependent Restaurants of America (CIRA), which began in 1999and now has 15 chapters. He points out that the rise in newrestaurants, which the Bureau of Labor Statistics pegs at anywherefrom 8,000 to 10,000 new restaurants per year, mostly comes fromchains and franchises.

"The first thing to do is realize other independentrestaurant owners are not enemies-they're your bestfriends," says Luria, who also owns Cafe TerraCotta in Tucson, a restaurant with $3.5 million in annualsales. The 35 member restaurants of the Tucson Originals, the localCIRA chapter, buy co-op billboard ads together-something theycouldn't afford on their own.

Likewise, the Washington, DC, chapter of CIRA is running ayearlong Web site promotion with WashingtonPost.com, posting a link to thechapter's Web site-which in turn links to its individualmember restaurants. It's an advertising feat that wouldbankrupt one restaurant paying on its own.

In addition to group ads, CIRA chapters work to educate futurecustomers. Several times a year, Luria sits down for dinner with atable full of middle-school students, fielding questions abouttopics like calamari salad. This Tucson Originals program, calledKids Dine Out, came about because the first restaurant experiencefor most children is of the burgers-and-fries variety, so manyyoungsters "never get past the chain restaurant," Luriaexplains.

Another goal: Spread the message that independent restaurateursare people with a passion for food who are working together tobetter their communities. Ouita Michel, 39, owner of the Holly Hill Inn, afine-dining restaurant outside Lexington, Kentucky, with $1 millionin annual sales, teams with other independent chef/owners to hostcharity events throughout the year. "We sellauthenticity," says Michel, whose menu ranges from dim sum tocassoulet. She says the charity-event teamwork lends her restauranta nostalgic feel, reflecting the style of the 150-year-old inn.While Michel is not yet a member of CIRA, she is working to form alocal chapter.

"Five years ago, if you asked me whether I'd put a cardwith the names of 47 other restaurants in my restaurant, I'dhave said no," says Luria. "They don't call usindependents for nothing. But we've got to learn to worktogether and create a brand around independentrestaurants."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Buying / Investing in Business

From a $120M Acquisition to a $1.3T Market

Co-ownership is creating big opportunities for entrepreneurs.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business News

AI Could Cause 99% of All Workers to Be Unemployed in the Next Five Years, Says Computer Science Professor

Professor Roman Yampolskiy predicted that artificial general intelligence would be developed and used by 2030, leading to mass automation.

Buying / Investing in Business

Big Investors Are Betting on This 'Unlisted' Stock

You can join them as an early-stage investor as this company disrupts a $1.3T market.

Leadership

Lead From the Top: 5 Core Responsibilities of a CEO

Knowing exactly what the chief executive's role entails is critical for steering a company to success.