What’s the Deal With Delis?
Pastrami sandwiches have fed Americans for generations, but are they being replaced by Gen-Z’s growing appetite for matcha lattes?
Delicatessens were brought to the United States by Jewish immigrants in the mid-19th century. Their rich history begins in New York City selling cured meats and canned goods. Delis became a beloved aspect of American culture; whether it was for a convenient sandwich, or other pre-prepared comfort foods (like knish). However in recent years, with rising costs, supply chain challenges, and shifting demographics, delis are becoming a dying industry.
Coffee shops have taken over the Los Angeles scene, with one seemingly popping up on every corner. The rise of matcha, influenced by social media, has increased the popularity of cafes. For many people, coffee shops act as their third space, a theory created by Ray Oldenburg, an American sociologist. It serves as a space outside of home and school or work that fosters a community, but most cafes lack the rich tradition and culture that deli’s provide.
One of the most notable aspects of delis is they are often passed down from generation to generation. Keeping the business within the family creates a close knit culture with the regulars, and a welcoming environment to new faces.
Factor’s Famous Deli, established in 1948, exemplifies this trend and just what makes delis so special.
“That’s a really special thing about Factor’s [Deli], my parents were the first generation, me and my siblings the second generation, my niece the third generation, and the kids are our fourth generation,” says Debbie Markowitz, who has been working at Factor’s Deli for over 45 years. The Factor family originally founded Factor’s Deli, but after deciding to retire, the Markowitz family took over in 1969.
But family isn’t only defined by blood. Many of the staff-workers at various deli locations become an integral part of the community. George has been working at Canter’s Deli for 63 years, soon after immigrating to the U.S. from Greece at the age of 22. “Why would I retire? I’m working for this wonderful, wonderful family. That’s why I stayed so long,” says George despite being 84 years old.
It is the customers that truly make a deli. Markowitz talks about the generations of families that she has gotten to know. “I remember kids that were in high chairs coming here who now come in with their own kids, so it’s a very special place, it’s not like a normal restaurant,” said Markowitz. At Canter’s Deli, 75% of the people who walk through the door are regulars, some coming in twice a day, says Greg, a long-term employee of 40 years. Clearly, people stick to their delis.
When asked about whether the matcha-coffee trend has impacted Factor’s Deli, Markotwitz says, “Definitely, but there’s enough business for everyone as long as you keep it current. We have all the lattes and espressos and maybe matcha is gonna be something we’re gonna have to have.” Adaptations are not an unfamiliar concept to this deli. “Throughout the last 30 years our menu has had a lot of additions that are more vegetarian and vegan,” said Markowitz. It seems Factor’s isn’t afraid of a little change, and they put an emphasis on providing food that everyone can enjoy.
Delivery apps have also had an impact on local delis. Apps like Postmates or Uber Eats have made getting a meal more accessible than ever, but there is still much more that goes into it for the restaurant. According to an article by UPenn, there are various fees the businesses have to pay for every online order, like commission fees of 15-30%, delivery fees of 10-20%, and restaurants can pay for things like sponsored listings which help advertise their establishment. This begs the question, is it worth it for a small business to join the delivery app band-wagon?
For Factor’s Deli, yes. Markowitz describes delivery apps as a train passing through a station, if you don’t get on “you’re missing the action.” She says at first she didn’t love using the apps but now, the natural marketing/advertsizing and the volume of sales (about 100 orders a day according to Markowitz) it has brought, the additional costs are justifiable.
However, costs do play a large role in the decline of many delis. Owning and running a food business is a large investment that sometimes does not pay itself off. Inflation has affected both the store-owners and loyal customers. As The Medium puts it, “customers now fork over $30 for a classic pastrami or corned beef sandwich. With cheap alternatives, like Subway offering $5 sandwiches, delis are in a pickle.” It begs the question, does loyalty overpower a good deal?
Through the almost 80 years Factors has been open, one thing has never changed: the tradition of holiday spirit. Roshashana and Yom Kippur are their biggest days of the year. This year they served about 2,000 people, working from one in the morning until four pm the next day. “So the traditions of families that have done it for years and years that are going to come back every year, the same customers.” said Markowitz. Another tradition that has not changed since the opening of Factors is their most popular foods: matzo ball soups, pastrami sandwiches, and rubens. Markowitz says, “It doesn’t matter how many healthy things you put on the menu. Those are the number one sellers.”
Markowitz ended by sharing a bit about why Factors is so important to her. “It’s very generational, we're a big part of the community. I can’t go anywhere without knowing somebody. Just serving this community has been a great opportunity and privilege for us, and we feel like it's a labor of love. We do it because we love our customers and we love the traditions,” said Markowitz.
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