Congestion Pricing Could Lead to Higher Food Costs in New York City

Congestion pricing is finally set to go into effect in New York City—but it may change more than just your commute if you’re based in the tristate area.

When tolls start on January 5, they’ll likely lead to higher prices for food at restaurants and grocery stores in N.Y.C., Eater reported on Monday. That’s because food distributors will have to pay the extra fee, which they’ll then pass on to consumers to cover the added cost.

“If you eat food in New York City . . . the cost is going to go up,” Margaret Magnarelli, the vice president of marketing for food purveyor Baldor Specialty Foods, told Eater.

The congestion-pricing plan will see vehicles entering Manhattan below 60th Street pay $9 per day per car and up to $21.60 per entry for trucks, Eater noted. In theory, that’s meant to help cut down on traffic, improve air quality, and provide extra funds to better the city’s public transportation. But more than 100 food distributors, trade associations, wholesale markets, restaurateurs, and other food-industry professionals have formed a coalition to get the government to exempt F&B distributors based in New York City.

Baldor is leading the group, which includes distributors like Chefs’ Warehouse and Fulton Fish Market, as well as restaurateurs such as Tom Colicchio and Sean Feeney. While some may agree with the effort to reduce traffic and air pollution, they see the congestion pricing as adding a burden to a food industry that has already had to deal with rising costs due to other factors and strain from the pandemic.

Many people may be able to opt for public transportation instead of driving into the city, but food deliveries can’t make the same concessions. “A restaurant’s fish order isn’t taking the 6 train into the congestion zone to avoid the fee, and their broccoli isn’t hopping on the 2 train either,” Andrew Rigie, the executive director of the NYC Hospitality Alliance, told Eater. “It’s just a tax that suppliers will pass on to small businesses, forcing restaurants to absorb costs or raise prices.”

The government, meanwhile, doesn’t believe that congestion pricing will result in higher food costs, with a spokesperson telling Eater that overnight tolls will become lower and that deliveries should become easier and faster. Yet those in the industry don’t seem to think that will be the case, and they hope that N.Y.C. officials will realize that before the costs are passed on to the public.

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