Public Market sees gains, but still no profits

Tuesday, October 14, 2003

PULSE: Edward D. Murphy

The Portland Public Market was originally projected to be generating enough money to break even within five years.

As the fifth anniversary of the market's opening passes this month, that goal remains five years off, said Greg Dove, the director of the nonprofit market.

But there are bright spots Dove can look to, beyond the ledger sheets.

The market is fully leased out, he said, and work to create a new restaurant - Mavericks steakhouse - is nearly complete. Two years of sagging sales have been reversed; the market's vendors posted sales increases of 12 percent last year and 4 percent this year.

Only two of the market's vendors are run by Farm to Market, a venture owned by the Public Market that began as an effort to fill the stalls when rapid turnover left some gaping holes. When Dove took over two years ago, eight of the vendors were run by Farm to Market and the goal was to turn over as many as possible to private operators.

Dove said he sees a market that is growing steadily, attracting shoppers more readily and finally heading in the right direction.

"There's a great deal of confidence in the market, and the market, in terms of sales, is succeeding," Dove said. "We feel the market is coming into its stride. We have a very stable group of vendors. The last two years have been very hard on small businesses, but the market has been increasing sales."

It's been a rocky road to stability.

The market's opening was marked by repeated delays and almost immediate complaints by vendors. The original director, Ted Spitzer, was a nationally recognized expert on public markets, but critics complained that he was too much of a purist and resisted vendors' requests to sell more ready-to-eat food, like sandwiches or fruit salads, for patrons who saw the market as a convenient place for lunch.

Spitzer departed two years ago in what was called a mutual decision between him and the Libra Foundation, the philanthropy founded by Elizabeth Noyce, which financed construction of the market and underwrites its red ink.

Dove stepped into a difficult situation as director, facing unhappiness among the vendors and anything but a steady stream of market patrons.

His first step was to cut rents, replacing a formula based in part on a percentage of gross sales with a flat rate that in many cases was lower than the base rent that had been charged. That rent change is why the market is still operating below break-even levels, but also why it is filled with vendors, Dove said.

Dove said the market itself has to be seen as a small business - very few of which turn a profit or break even within the first few years.

The new steakhouse, expected to open next month, is also a symbol of how things are changing, Dove said.

The first restaurant, Commissary, was run by New York restaurant star Matthew Kenney and shut down amid a slew of unpaid bills.

"Their issues were beyond Maine's borders," Dove said, and the restaurant was dragged down by Kenney's financial problems with his New York operations after the Sept. 11, 2001, terrorist attacks.

Marketside Grill opened early this year, but closed after just five months and failed to draw much of a following.

Dove blames the problems of both restaurants on a soft economy and prices that "were too much high-end in terms of the character of the market."

Mavericks, by contrast, will be more family oriented and priced, Dove said. He hopes it will attract diners who take time to shop in the market.

For the next year, the market will keep focusing on attracting shoppers. It also is looking to help the neighborhood.

One of the goals for the market is to redevelop the stretch of Cumberland Avenue where it's located, Dove said.

The market plans to work with property owners in the area to help fill some storefronts with shops that can feed off the market's customers and vice versa.

"We realize the market cannot be an island," he said, and it can help the neighborhood while helping itself.

The rising sales and more crowded aisles are signs that the market is on the right track, Dove said, even if it's taking a little longer to reach its goals than was originally anticipated.

"Every day, there seems to be more traffic, earlier in the day and longer into the afternoon," he said. "I feel good about where we are."

Staff Writer Edward D. Murphy can be contacted at 791-6465 or at: emurphy@pressherald.com

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