NYC food industry begs for exemption to traffic congestion toll, warns prices will spike

New York City’s food industry leaders begged Gov. Kathy Hochul for an exemption from her controversial congestion pricing plan – warning that the fee will lead to higher prices for consumers.

A coalition of more than 100 businesses and associations – including restaurateurs, distributors, food banks and businesses such as Baldor Specialty Foods and Acme Smoked Fish – are raising concerns about the toll on all vehicles entering Manhattan below 60th Street, which is set to begin Jan. 5.

Famed chef Tom Colicchio feared the onerous toll will drive down business at restaurants in the congestion pricing zone that have finally started to recover from pandemic lockdowns.

“At a certain point, people will stop going out,” Colicchio, owner of Crafted Hospitality, told Side Dish.

“Everything is getting too expensive. No company will absorb the cost of this, they will just pass it on to the consumer.” 

Many Big Apple-based businesses already pay a separate tax to fund the Metropolitan Transportation Authority, the beneficiary of the congestion pricing plan, the leaders wrote in a Dec. 10 letter to Hochul, which was obtained by Side Dish.

“New York City’s food and beverage distributors find themselves in the challenging position of being doubly penalized for providing a vital service to our city,” the letter said.

The association called for “common sense” exemptions for  “essential food service distributors”  based in the city.

“The current proposal creates an undue burden on essential food service businesses that keep New York City’s renowned food industry alive,” the letter noted.

“This is a middle class tax grab. It makes no sense,” said Big Apple nightclub impresario Ritchie Romero. “Between inflation and other expenses, people can’t afford to go out anymore.”

The high cost of delivering food will also mean reduced access to fresh produce for vulnerable populations, undermining the city’s public health goals, according to members of the coalition that include non-profits Wellness in the Schools, New York Common Pantry and the Food Bank for New York City. 

“People have the option of using the subway instead of a car, but for cargo, there is no alternative besides bringing it in on trucks,” said Seth Gottlieb, SVP of logistics at Baldor Specialty Foods.

“We support efforts to reduce traffic and to improve air quality but this solution puts too much pressure on the critical food supply chain into the city.” 

Andrew Rigie, the executive director of the New York City Hospitality Alliance, echoed that concern.

“There are many essential deliveries, services and workers for whom taking public transportation into the zone is not realistic and they’re angry about being forced to pay the fee,” Rigie told Side Dish.

The missive from food industry leaders joined the growing backlash over the plan after Hochul’s about-face to reinstitute the toll. She had paused the much-derided toll – originally set at $15 – just weeks before it was to go into effect this summer.

The 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.

Earlier this month, a group called New Yorkers Against Congestion Pricing Tax filed for an injunction, claiming that Hochul is breaking the law by ignoring the impact the tax will have on small businesses, jobs and other socioeconomic factors. 

A hearing is scheduled for Friday.