As a visitor climbs the stairs out of the T station or a Harvard freshman exits the Yard, he or she enters what is called “the heart of Harvard Square.” Two decades ago, the visible area was lined with local, independent stores.

Over the years, the central locations of the Square have become dominated by national chains. In recent months, two national corporations—Pinkberry and Starbucks—opened in one of the oldest buildings in Harvard Square.

Traveling further down Mass. Ave., the street that was once home to several small retail stores has transformed into a line filled with banks and nationally owned chains. An old time business, Bob Slate—a stationary store—closed its doors in March, but the location will soon be filled by a chain panini restaurant, Panera Bread.

Yet hidden between the nationally-recognized names reside independent businesses that hold on to what was once the foundation of Harvard Square. These small shops stay true to their niches to provide unique services to the community while trying to survive in a world of economic shifts and changing trends.

THE CHANGING FACE

Even before the establishment of Harvard University, the Square existed as an area of local businesses to serve the needs of 17th century community members. Since then, Harvard Square has developed as one of the most popular destinations in Massachusetts.

The Harvard Square Business Association, which has served the community for over 100 years, has tracked data on Square business for the past decade.

HSBA Executive Director Denise A. Jillson says that over that time, there has been a shift from retail to more restaurants and eateries in the Square. According to the HSBA, there are 128 retail establishments and 95 restaurants.

The number of locally-owned independent businesses has fluctuated between 72 to 80 percent and is currently 78.1 percent, according to Jillson.

“One of the causes for the perception [of more nationals] is they are typically located in the most visible real estate,” Jillson says. “They can pay higher rents. It’s not a growing trend here. It’s been a reality for a long time.”

The high cost of rent has also forced many residents of the Square to move, says Paul J. Macdonald, the owner of Leavitt & Peirce—a tobacconist that has been in the Square for 178 years. This shift has changed the face of the Square.

“The community has definitely changed. It’s less of a neighborhood,” says Bill E. Bartley, the general manager of Mr. Bartley’s Burger Cottage.

Bartley, whose father Joseph Bartley founded the restaurant in 1961, recalls growing up on Mass. Ave. and learning from the many local business owners on the street.

The business world has seen a change in the past decade due to the emergence of the Internet and online shopping, according to Richard J. Diamond, the owner of Diamond Group—a commercial brokerage and advisory company. These factors can force both independent and national businesses to fail. Abercrombie & Fitch—a national men and women’s apparel store—was located at 6 JFK St, but it closed in 2004 to be replaced by Citizens Bank.

“What happens is some big chains come in and realize they can’t do business here. They close and the small mom and pops continue to flourish,” Diamond says.

Christos Soillis, the owner of Felix Shoe Repairs, says a successful old business survives by “doing the best job you can do.”

“Do the right thing and they will find out and come to you,” Soillis says.

Macdonald says staying true to its niche of gifts, games, and tobacco has allowed Leavitt & Peirce to be a “torchbearer” for the old Harvard Square.

TUCKED IN THE CORNERS

As he stood outside the soon-to-be location of his first frozen yogurt shop, Matthew A. Wallace, the co-owner of Berryline, panicked as he counted only 20 people walking by in four hours. Without foot traffic, he feared customers would never find out about his business.

Wallace’s fears are emblematic of a problem faced by many small businesses, which often cannot afford to pay the high rents of prime real estate locations that receive the most foot traffic.

But the Berryline location has nonetheless become popular among the Harvard Square community.

“We were totally bootstrapping it, and the students really embraced it,” Wallace says. “People identified with us.”

Nhon T. Ma, the owner of Zinneken’s—a Belgian waffle shop set to open in August—also secured a space in the back corner of the Square, above Berryline. Ma and Wallace both hope that the location will become more of a destination due to the opening of this new business.

Otto Pizza is located at the center of the Square but faces size limitations at only 280 square feet.

“People said you’ll never get that space. That’s going to a national, but not many other food places can work in the size limitations,” says Anthony W. Allen, the pizza place’s co-owner.

Some businesses have been pushed to less prominent sites. Schoenhof’s—a foreign-language bookstore—opened in 1856 and used to reside on Mass. Ave. But it moved to 76 Mount Auburn St. in 1983 and has stayed there since.

“A lot of people think the Square’s being taken over by chains, but there are lots of independents buried between them,” says Ayr M. Muir, owner and founder of the Holyoke Street restaurant Clover.

A PLACE FOR INNOVATION

Harvard Square has served as one of the first locations for what are now regional or national businesses, including Bertucci’s and Au Bon Pain, and national businesses continue to use the area as a testing ground for new projects like Starbucks’ recently opened two-story location.

“We have customers who can barely see over the counter and people in their 70s,” says Allen.

Clover opened its first location in the fall of 2010 on Holyoke Street after the success of its food trucks at the MIT campus.

“I thought this would be a great place for us to test ourselves,” Muir says.

Even established businesses in the Square have used it to test new products and concepts. Au Bon Pain remodeled its location to a marketplace design in January. After the positive feedback from the remodelling, the company is using the prototype to overhaul the entire chain, according to CEO Susan A. Morelli.

Starbucks’ third location in Harvard Square incorporates an innovative two floor design. As a center for coffee enthusiasts, General Manager C. Shane Sykes believes Harvard Square provides a perfect location.

“We truly believe that being able to deliver our coffee here and have a room on the second floor gives a customers a chance to slow down and appreciate the coffee,” Sykes says.

This year has seen the addition of national and small businesses and will continue to transform with the opening of Zinneken’s. While the owners are from Belgium, they believed Harvard Square to be a great location due to the traffic flow and the age spectrum of customers.

“I also think people are looking for something different in the Square,” Ma says.

CONTROL OF THE LANDLORDS

Many property owners with different goals and visions for the Square lease spaces to the 365 businesses currently open in the Square.

Harvard University leases spaces to 36 businesses, including Mr. Bartley’s, Leavitt & Peirce and the Globe Corner Bookstore.

“Our focus is always on small businesses with unique offerings,” says Lisa Hogarty, the vice president for campus services at Harvard. “We really don’t talk to national retailers ever.”

Soillis says he appreciates Harvard for the support they have given him and his business.

The University is not the only property owner of many independent businesses. John P. DiGiovanni, the president of Trinity Property Management and the president of the HSBA board, leases property for Fire & Ice, Dado Tea, several places in The Garage Mall, and other locations throughout the Square.

DiGiovanni’s company considers each shop owner’s business plan, offering for the Square, and strength before accepting their offer.

“It isn’t always the case for the highest bidder. In the long term, it’s better to have a cafe than a phone store,” DiGiovanni says.

The University also considers the experience of the business. Hogarty says that the most recent tenants—Clover and Al’s Harvard Square Cafe—were recognized for the success of their other locations.

The HSBA board meetings serve as a venue for property owners and other business owners to advocate for either independent or national business, or even a combination of the two.

Hogarty says that Harvard, as a member of the HSBA, urges other property owners to look to small businesses to preserve the uniqueness of the Square.

But not all landlords in the Square have a strict policy of leasing to only independent businesses. Cambridge Savings Bank leases the historic building at 1380 Mass. Ave., which is now home to Pinkberry and Starbucks.

Cambridge Savings Bank declined to comment on their leasing policies.

PART OF THE COMMUNITY

Some local business owners emphasize the importance of keeping square stores mostly independently owned, but others note that in order for the community to remain vibrant, it is important to have a mixture of business models.

“It’s good to sprinkle national tenants,” says Thomas J. Brush, the co-owner of Felipe’s and Flat Patties, noting an independent business would likely not be able to afford a space as large as the one that Anthropologie currently occupies at 48 Brattle St.

Representatives of national corporations are also allowed to be members of the HSBA and several are, including the general managers of Pinkberry and the new Starbucks. Both of their managers are also Cambridge residents and have long relationships with the Square.

“While we have a national brand, we have a local franchise,” says Trippe J. Lonian, the Pinkberry area developer for New England.

These companies have looked to become a part of the neighborhood through charity and community events.

Regardless of their business model, Harvard Square store and restaurant owners agree that in order to survive they must serve the needs of the community.

According Marley J. Brush, co-owner of Crema Cafe, about 60 percent of the restaurant’s customers are regulars.

Pinnocchio’s may be farther away from the center of the Square than other pizzerias, but it is successful due to its quality and regular customer base, says owner Adam Dicenso.

But local business people say they also rely on the Square being a unique attraction in Cambridge, a quality they fear may fade with a shift towards more restaurants and national companies.

“If it becomes an outdoor strip mall like Faneuil Hall, what’s the difference?” Brush says. “There wouldn’t be anything new to discover.”

—Staff writer Kerry M. Flynn can be reached at kflynn@college.harvard.edu.