NYC RESTAURANTS BRACE FOR THE IMPACT OF CONGESTION PRICING The city is the first in the nation to charge vehicles, including distribution trucks, every time they pass through a high-traffic zone. Operators fear a climb in food costs and an erosion of guest traffic. By Peter Romeo on Jan. 03, 2025
The expected negatives of what’s known as congestion pricing don’t end there. Because passenger vehicles are charged $9 for entering a large swathe of downtown, restaurant groups have aired fears that consumers will shift their visits to establishments in the outer boroughs or suburbs. Restaurants outside the high-traffic zone could also be affected because cars passing through the designated area enroute to other parts of the R estaurants in the heart of New York City are bracing for a hike in the cost of food and other supplies, a side effect of the unprecedented effort to lighten midtown traffic by charging distribution trucks and other vehicles for merely entering the area.
In addition, industry representatives warn that the $9-per-car fee will dampen attendance at Broadway shows, concerts, holiday celebrations and the host of other activities that feed customers to the city’s robust restaurant trade. Taxis entering the central business district are charging their fares an extra 75 cents per trip. The surcharge for Uber and its on-call competitors is $1.50. The effect on commuters is also a worry to groups like the New York City Hospitality Alliance, an advocate for the city’s restaurants, bars and nightclubs. Manhattan, the island in the center of the city, are still charged.
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