Balducci's, a longtime mecca for Manhattan's epicures, recently closed its last two flagship New York City stores in Chelsea and the Upper West Side in the face of the recession and heightened competition from newcomers like Whole Foods, Fresh Direct and Trader Joe's. Balducci's private equity owner, Irving Place Capital, formerly Bear Stearns Merchant Banking, is also closing stores in Washington D.C. and Ridgefield, Conn.
"It's economic," Irving Capital spokesman Michael Doppelt, told thedeal.com. "We're in a tough environment, and gourmet foods are not necessarily what people are flocking to."
Six other Balducci stores, including one in Scarsdale, N.Y., remain open.
Started in 1946, Balducci's earned its foodie reputation after opening its flagship location in Greenwich Village on Sixth Avenue in 1972 and began introducing New Yorkers to what were then considered exotic foodstuffs like virgin olive oil and buffalo mozzarella.
An article The New York Times on the closings said a woman who worked at the Upper West Side location deli claimed, "diehard customers had been bursting into tears in recent days, and even yelling at the staff."
But the same article implied that many of its upscale offerings - including Pomodoro Basilico dipping oil, goose foie gras, and Tasmanian rainwater - were even too much for snobby New Yorkers. Said Barbara Colasanti, a 45-year-old teacher who lives in the West Village, "Do you really need chipotle raspberry finishing sauce? People don't need all this stuff. It's a lesson."
An article on its exit in the Village Voice also noted that prices were jacked up after its legendary Sixth Avenue store was relocated to the bank building on 14th Street.
"The quality was always choice, but in the age of Whole Foods and Fresh Direct, it would seem most shoppers who wanted to scale up a little had enough other options, and there just aren't enough discerning rich left in New York to keep the stores open," summed up the Village Voice.
An article in the alternative weekly, The New York Press, entitled Most Beautiful (and Absurd) Grocery Store Says Farewell stated, "We used to bring wide-eyed tourists into the Chelsea Balducci's just to gawk at the excess. The vaulted ceilings of the former bank in Chelsea was incredible, not just for the obscure foodie finds, but simply because such a grand structure was being used to hawk produce and bottled drinks. We never bought anything there, and few others did either - after Whole Foods and Trader Joe's delivered the one-two punch to the gourmet grocery."
Discussion Questions: Do you think the recession or new competitors were more responsible for Balducci's exit from Manhattan? What are the lessons to be learned from this story?