NYC Food Prices to Soar? Restaurant Owners and Food Industry Beg for Congestion Pricing Exemption
New York Post 5 days ago
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NYC Food Prices to Soar? Restaurant Owners and Food Industry Beg for Congestion Pricing Exemption

BUSINESS
congestionpricing
nycfood
restaurant
foodindustry
hochul
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Summary:

  • NYC food industry demands exemption from congestion pricing.

  • Increased delivery costs will lead to higher food prices for consumers.

  • The toll disproportionately affects essential food service businesses.

  • Reduced access to fresh produce for vulnerable populations is a major concern.

  • Legal challenge to congestion pricing is underway.

NYC Food Industry Fights Back Against Congestion Pricing

The New York City food industry is up in arms over Governor Kathy Hochul's congestion pricing plan, fearing it will drastically increase prices and drive customers away. A coalition of over 100 businesses, including renowned chef Tom Colicchio, has sent a letter to the governor, urging for an exemption for essential food service distributors.

<img src="https://nypost.com/wp-content/uploads/sites/2/2024/12/2024-newfront-town-hall-penn-95519145.jpg?w=1024" alt="Famed chef Tom Colicchio fears the toll will drive down business at restaurants in the congestion pricing zone.">

Double Trouble: Existing Taxes and New Tolls

Many businesses already pay taxes to fund the Metropolitan Transportation Authority (MTA), the beneficiary of the congestion pricing plan. The new toll adds insult to injury, with fees set at $9 for cars, $14.40 for small trucks, and $21.60 for large trucks during peak hours. This is seen as a double penalty for keeping NYC's food system running.

<img src="https://nypost.com/wp-content/uploads/sites/2/2024/12/congestion-pricing-toll-system-equipment-94809694_c2ac9a.jpg?w=1024" alt="Congesting pricing toll is now set to impose fees of $9 for cars, $14.40 for small trucks and $21.60 for large trucks during peak hours 5 a.m.-9 p.m. on weekdays and 9 a.m.-9 p.m. on weekends.">

The Impact: Higher Prices and Reduced Access

The coalition argues that these increased costs will be passed onto consumers, leading to higher food prices. Nightclub owner Richie Romero calls it a "middle-class tax grab." Furthermore, the increased cost of delivery will restrict access to fresh produce for vulnerable populations.

<img src="https://nypost.com/wp-content/uploads/sites/2/2024/12/richie-romero-sushi-bou-nomad-79323854.jpg?w=1024" alt="Big Apple nightclub impresario Ritchie Romero called the toll &quot;a middle class tax grab.&quot;">

Logistics Nightmare: No Easy Alternatives for Trucks

Unlike cars, trucks have no viable alternatives to delivering goods. Seth Gottlieb of Baldor Specialty Foods highlights this, emphasizing the strain on the city's food supply chain. The NYC Hospitality Alliance agrees, stating many essential workers cannot realistically use public transportation.

<img src="https://nypost.com/wp-content/uploads/sites/2/2024/12/2024-new-york-n-y-93636592.jpg?w=1024" alt="Gov. Kathy Hochul has faced growing backlash after her about-face on congestion pricing.">

Growing Backlash and Legal Action

The food industry's plea adds to the mounting opposition against the congestion pricing plan. A group, New Yorkers Against Congestion Pricing Tax, has filed for an injunction, challenging the legality of the toll. A hearing is scheduled for Friday.

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