Pass the Quinoa

An anxious crowd waited in an endless line. Line-jumpers were identified and viciously berated. There were also plenty of Polynesian (think Hawaiian) shirts. No, a famous South Pacific band wasn't playing a concert, and no Polynesian celebrity was signing autographs, it was the grand opening of Trader Joe's, a specialty grocery in Union Square. Get used to it: Specialty groceries are the new Starbucks.

New York has always been a haven for high-price, health-conscious specialty groceries, but at no time have so many dotted the landscape. With every success, more are being planned to compete with rival brands or to conquer new turf: Citarella, Whole Foods and Trader Joe's are just the beginning. These specialty groceries are following in the wake of gentrification, a heated topic among New Yorkers, but unlike high-end coffee shops, boutiques or corporate bookstores these specialty groceries appear to benefit everyone in the community.

"Gentrification is the key," said Jonathon Korzine, senior managing director of retail real-estate broker for Garrick-Aug. "They do very precise demographics of the neighborhood and once the income hits a certain level, they're in."

While it's no surprise these specialty stores target more affluent customers, they are also advantageous to lower-income citizens. Harold Simon, executive director of National Housing Institute-an "independent nonprofit organization that examines the issues causing the crisis in housing and community in America"-said specialty groceries actually lower the cost of food in many gentrified neighborhoods. Low-income neighborhoods tend to have high-priced food before specialty groceries arrive. Small groceries place small orders and cannot pass on the discounts to the communities like a larger store can.

"At Whole Foods, you'll see items that cost much more, but if you're a responsible shopper, you're not going to end up spending that much more money," Simon said.

"Usually the discussion is not so much what they'll to other stores, but about their labor practices. They're non-union and they fight unions, but it's difficult situation because they pay better than others."

Before lower-income residents can benefit from a specialty store, protection policies must be in place.

"People see gentrification as a bad thing if people get displaced, others see it as a good thing if there are protections," said Simon.

He said New York has the most comprehensive gentrification protections in the country: Everything from rent control, non-profit housing corporations, shared equity housing and zone ordinances that require a certain percentage of new housing to be considered affordable.

"The developers do this because it is the law, and they'll be given bonuses like more units?or they'll have their projects fast-tracked. Laws would never pass if the developers lost money," Simon said. "If you have these protections and you have gentrification, people will be able to continue to stay there and reap the benefits."

Another misconception is that when a specialty grocery store opens in a neighborhood, independent groceries cannot compete. While some specialty grocery chains have hundreds of location all across the country, many are still considered independent because of their "go to market strategy" and commitment to service said Frank DiPasquale, senior vice president of the National Grocers Association. Trader Joes is a member of their organization.

"Independents have done quite well in creating points of marketplace differentiation by using specialty foods, fresh foods and prepared foods," said DiPasquale. "Many independent retailers continue to grow their businesses-both organically and through acquisitions. Independent retailers continue to be the innovators of our industry and I do not see that changing."

The same cannot be said for lower-priced supermarkets, though specialty stores are not to blame.

"The grocery companies that have had the most difficult time competing over the past three years have been publicly traded chain stores, such as Albertson's, A&P, Ahold and Safeway," said DiPasquale.

Simon also said a similar statement about supermarkets: "On a national level, I don't think Whole Foods are hurting these stores. They have other problems."

Mergers, sales and reorganization leave the supermarket industry in a state of continuous shakeup. Earlier this year Albertsons, the nation's second largest grocery store, was bought out by SuperValu Inc. Press releases from Albertsons cite distribution inefficiencies and competition from Wal-Mart as the source of their troubles. Wal-Mart now sells more food than the five largest supermarket chains combined. Experts have said attention to customer service and a focus on regional interests are areas supermarkets will have to improve to stay competitive.

Korzine said supermarkets have other reasons for losing ground to specialty groceries.

"Gristedes and Pioneer and some of the others are at competitive disadvantages because of all the excitement over specialty food, quality and presentation." He later said the more affluent areas in Brooklyn, Wall Street and the Lower East Side would likely see specialty stores soon.

"Given the current landscape of specialty stores, I do not envision a backlash," DiPaulize said. "The so-called backlash will occur if a specialty retailer compromises their quality standards and betrays the trust consumers have placed in them."