What makes a chain business? Arroyo Grande debates what types to allow in the Village
Changes in how the city views chain businesses could shake up what types of businesses are allowed in the Village of Arroyo Grande.
On Tuesday, the Arroyo Grande Planning Commission unanimously voted to recommend the City Council adopt amendments to an ordinance prohibiting formula businesses — also known as chains — in the Village. Commissioner Kevin Buchanan was absent from the meeting.
Arroyo Grande has had an ordinance restricting formula businesses from opening in the Village since 2005, planning manager Andrew Perez said during the meeting.
The current ordinance defines formula businesses as retail and restaurant spaces that are similar in services, trademark or appearance to six or more other establishments. It’s specifically meant to be aimed at keeping fast food out of the area, Perez said.
But a question arose last year with the opening of Rori’s Artisanal Creamery. The ice cream shop, which replaced Doc Burnstein’s Ice Cream Lab, was the sixth of the Santa Barbara company’s scoop shops to open in the state.
That prompted the City Council to direct city staff to revisit the formula business ordinance and examine if the six-establishment threshold was too low, citing concern that establishments similar to Rori’s might be disallowed under the city’s current zoning regulations.
The revised ordinance proposed by staff at Tuesday’s meeting expanded the definition of formula businesses to cover all businesses that are “required by contractual or other arrangement to maintain standardized services and the same or similar name, trade name or trademark,” rather than only applying to restaurants and retail spaces.
Though the definition would now cover all businesses looking to set up shop in the Village, the updated ordinance would also raise the threshold from six to 10 similar businesses.
The increase was included ”to strike a balance between maintaining the charm and character of the Village without imposing restrictions on property owners that make it difficult to find tenants for vacant commercial spaces,” the updated ordinance read.
With the Planning Commission’s approval, the City Council will next consider final approval of the ordinance, though the date for a hearing has not been set.
This story was originally published January 18, 2024 at 10:00 AM.
