Is congestion pricing a blessing or a curse for Manhattan’s businesses? It seems to depend almost entirely upon who you ask. When Gov. Kathy Hochul initially canned the plan, she said she did so in part because small business owners were afraid of losing customers who travel by car. However, some business owners recently offered their take, and the response was far less unanimous than Hochul’s response seemed to suggest.
“We’re going to probably lose at least 25% more business,” said Danny Reina, general manager of Wall Street Grill.
Reina said the business is still struggling to recover from the pandemic, adding that instead of a business clientele, it has become more of a destination for family celebrations. “The dinners, it’s moving along steadily, but it’s not what it’s supposed to be,” Reina said.
The Pros of Congestion Pricing
Even with the $9 toll, the general manager of Wall Street Grill says the restaurant may have to reduce its lunch service. On a recent weekday, the luxury, upscale kosher restaurant on Pear Street had just two parties in for lunch.
Reina said he also fears losing employees who live in transit deserts. He commutes by car from the town of Westbury, Long Island.
“I don’t see [the congestion toll] decreasing traffic. We’re out here between 11:30 p.m.–12 a.m. When you’re getting out at that time, there are no trains. It will easily cost me $1,200 to $1,400 a month just taking the train.”
Recently, the chair of the MTA has said that less than 1% of people in the region drive to the Central Business District for work and that those who do will now have a faster ride.
Can Transit Systems Help?
Improved transit system will help, some say, while others disagree. Some business owners who are against congestion pricing have sued the MTA to stop it. Conversely, those optimistic about the plan say it can’t come soon enough.
Over on Varick Street, traffic leading to the Holland Tunnel backs up past Zafferano America, a lamp and tabletop store. CEO Barrett Gross said it deters customers who mostly come by foot.
“It’ll reduce the amount of traffic that’s right outside our front doors, and that’ll be more pleasant for people who are shopping here,” Gross said.
His is one of 150 businesses that are part of the Hudson Square Business Improvement District. The organization did a 2023 study that found that 93% of people ride the train, bike, or walk in the area. Some business owners even privately commission crossing guards to help people get to their establishments.
“We actually pay for private crossing guards after 3:30 in the afternoon to help people cross Varick Street,” said Samara Karasyk, the business improvement group’s president and CEO. “And so, the better our transit system, the more people will take the transit system to come here.”
Confusion Over Manhattan’s Business Future
In the West Village, Aviv Brawer-Cohen, the co-owner of Nati clothing boutique on Bleeker, is optimistic congestion pricing will help the store and another on Prince Street in SoHo.
“Our stores are located right next to the Christopher Street station, West 4th Street, Bowery, Broadway, and these stations are often times filthy,” Brawer-Cohen said. “Now, this city will have dedicated revenues to clean up these stations and make trains run more reliably.”
Diamanti NYC co-owner Kerri Lavine said she would feel uncomfortable with one of her employees carrying pricey stones on the subway. “Not really, honestly. I’m uncomfortable getting on the subway,” Lavine said.
Lavine said customers drive into West 47th Street from across the region to visit the famous store. “We make women happy, and we make men cry,” Lavine said. And yet, even a location as well-known as this is struggling amidst new rules and regulations.
“All the different companies, they do pick up, plus we have armored companies that are here,” executive director Avi Fertig said. “You can’t send it by messenger and bicycle. It needs to be done in a very careful, role-planned way.”
