A coalition of over 100 food distributors, restaurateurs, trade associations, and small businesses is urging Gov. Kathy Hochul to exempt them from a new congestion pricing plan that starts on January 5. The $9 daily toll for vehicles entering below 60th Street will increase to up to $21.60 per entry for trucks.
Industry leaders argue that the plan will raise prices throughout the supply chain, affecting consumers who eat out at restaurants and grocery stores. With many food distributors having warehouses in Queens, Brooklyn, and the Bronx, they handle over 60% of the city’s produce, meat, and fish – items that cannot be transported via public transit.
“Restaurants can’t afford to absorb these costs,” said Andrew Rigie, executive director of the NYC Hospitality Alliance. “It’s a tax on suppliers that will force restaurants to raise prices.”
While some support reducing congestion and improving air quality, many argue that the current plan unfairly burdens food businesses. Gov. Hochul’s office disputes claims that congestion pricing will raise food costs, citing reduced tolls during overnight hours.
Critics counter that businesses like Master Purveyors in Hunts Point will face significant costs due to the rules being more punishing for trucks than passenger cars. They argue that the program doesn’t eliminate truck traffic and will displace it to low-income neighborhoods already struggling with air quality issues.
The coalition argues that treating food distributors as city-based businesses for existing taxes but not for congestion pricing is hypocritical. They point out that this program is a “cash grab” by the MTA, with limited environmental benefits, and will directly impact retailers, restaurants, and the tourism industry.
Source: https://ny.eater.com/2024/12/16/24322881/restaurants-distributors-nyc-congestion-pricing