'This might be the thing that breaks us': NYC businesses are furious with new law that hurts their bottom line
When New York City announced plans to move forward with congestion pricing in early 2025, commuters weren't happy. The purpose of congestion pricing is to pump more revenue into the city and alleviate traffic by discouraging visitors to enter by car.
However, it's not just people entering NYC who are unhappy with congestion pricing. The policy is hurting local businesses, too.
I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast)
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10)
NYC restaurant owner Christophe Caron of Delice & Sarrasin fame says running his restaurant has become more expensive since congestion pricing started in January. And the problem has gotten so bad that he's not sure his restaurant will be able to hang on.
"We've survived a lot, but this might be the thing that breaks us," Caron shared with Fox 5 New York News.
The restaurant industry as a whole has taken a bit of a beating in the past five years. In 2020, stay-at-home orders hurt many NYC-based restaurants that rely on steady foot traffic to offset the high cost of rent.
Once that situation eased, inflation started soaring, hurting restaurants' profits. And it's been a problem ever since.
On a national scale, nearly 80% of restaurants reported rising food costs in 2024, according to Restaurant365's 2025 State of the Restaurant Industry Report. Labor costs also rose for 90% of restaurants.
The National Restaurant Association also reports that inflation is straining restaurants, and that between February 2020 and June 2024, food costs for the average restaurant rose 29% while labor costs rose 31%.
But that's not all. Expenses like rent, supplies and credit card processing fees have also risen, straining restaurants even more. Throw in congestion pricing, and NYC restaurants are truly having a tough go.
Andrew Rigie, executive director of the NYC Hospitality Alliance, says many restaurants are now looking at not just higher costs, but fewer customers.
'While some restaurants have unfortunately reported a drop in business due to congestion pricing, many have also told us that their vendors have raised prices or added congestion-related fees to their bills — making it even more expensive to operate a small business in Manhattan,' Rigie shared with AMNY.
Caron has seen his costs rise substantially since congestion pricing was implemented early in the year. Now, some of his suppliers have started adding a $10 delivery fee per order to cover the $9 congestion price toll they're being hit with.
"The cost of food has already gone up," said Caron. "Now they're making it harder to even get it to the kitchen."
Read more: This hedge fund legend warns US stock market will crash a stunning 80% — claims 'Armageddon' is coming. Don't believe him? He earned 4,144% during COVID. Here's 3 ways to protect yourself
The purpose of congestion pricing in NYC is to reduce traffic as well as air pollution and emissions. Congestion pricing was also implemented to raise revenue for public transit improvements, but critics of the program are quick to point out that it's just another money grab for NYC.
According to Allwork.Space, more than 700,000 vehicles drive into Manhattan every day. Now, drivers have to pay an extra $9 to enter Manhattan's Congestion Relief Zone between 5:00 a.m. and 9:00 p.m. daily.
Congestion pricing also applies on weekends between 9:00 a.m. and 9:00 p.m., which means it's not just daily commuters who are looking at higher costs. Visitors from surrounding suburbs are also going to be charged a premium to enter the city by car on weekends.
Daily commuters may have no choice but to pay congestion tolls since they have to get to work. But if visitors from nearby areas decide they're not willing to pay the extra money, this means a lot of local businesses, including restaurants, could see a serious decline in weekend foot traffic. That's a hit that many restaurants can't afford.
To be clear, it's not that congestion pricing just goes away outside of the aforementioned hours. Rather, the $9 toll decreases to $2.25. But all told, people looking to drive into NYC have few options for avoiding congesting pricing.
Of course, part of the purpose of congestion pricing is to encourage people to access NYC by public transportation. But that can be prohibitively expensive in its own right.
A roundtrip ticket to NYC from nearby New Jersey can cost upward of $34 for one adult. This means a couple is looking at spending more than $70 on public transportation for a date night in Manhattan, making congestion pricing the more economical option — 'economical' being a relative term.
Taxis, app-based for-hire vehicles and sightseeing buses are also subject to congestion pricing. These costs, as they get passed along to customers, are likely to drive consumers away.
All told, local businesses in NYC could see a drop in visitors as more and more people say no to congestion pricing. So while the extra revenue might help the city, it could be just the thing that shutters more local businesses and drives costs up even more for residents.
Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it
Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead
Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
Loving Giving Local: Rhoxon Productions
Movie enthusiasts will benefit from this week's Loving Giving Local donation. A local movie production company that sponsors a film festival is this week's recipient. Rhoxon Productions got a financial gift from Auto Express Resale Center. Rhoxon is an Erie-based non-profit independent film company that creates organic stories that promote a positive change. Besides creating art, Rhoxon strives to create jobs and educational opportunities in the film industry. 'Our last few projects have been about healing and about coping, and our next two are about revamping the social justice system,' said Katie Nixon, RhoxonProductions co-founder. 'That's sort of our creative endeavors, and we also create educational opportunities for people to learn how to do this professionally.' Nixon says Rhoxon has a vision of creating 50 new jobs in the film industry here. And she insists you no longer have to be on the East or West Coast to have a film career. 'No, the landscape has changed so much. Even Netflix has created their new studio out in Jersey. It's not just that you have be in New York or LA,' she explained. 'Erie is kinda a really interesting place. You have beach, you have woods, you have city, you have country all within 15 minutes of each other.' That landscape diversity, Nixon said, makes Northwest Pennsylvania the perfect place for shooting movies. This week's Loving Giving Local donation will help support an upcoming film festival. Nixon said, 'We started the only multi-genre film festival here in Erie. It's the Lake Effect Film Festival, which will be in September. So that money will go to help make that event possible.' After making his check presentation, Joe Askins of Auto Express Resale Center said, 'We're pretty fortunate to have Rhoxon in our community and they're already doing great things. So for us to be able to deliver loving giving local and to learn the donation we bring is going toward their film festival, that's what Loving Giving Local is all about,' Askins said. You can learn more about the film festival and Rhoxon's work here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
32 minutes ago
- Yahoo
Rockford hydroelectric project aims to power five homes with clean energy
ROCKFORD, Ill. (WTVO) — A Rockford-based company wants to harness the Rock River to produce energy to power homes. Latitude Power of Rockford partnered with design firm Studio GWA to create a pilot project that would use hydroelectric generators to create enough clean energy to supply electricity to five homes. 'Essentially, it takes wasted energy that's either flowing over a dam, or anywhere water is falling,' said Jared Cacciatore, Latitude Power co-founder. Rockford's Fordam dam will soon become the pilot program's test site, where a micro hydroelectric generator will be installed. 'We can take that water, that which is potential energy, and turn it into mechanical energy through a turbine and a generator, and then turn that into, you know, electrical energy,' Cacciatore said. Latitude Power received state funding through Illinois' Climate and Equitable Jobs Act (CEJA) to help develop the project. 'The company here won a nearly $1 million grant to produce hydroelectric power and uses the Rock River to generate electricity, which is a great concept. The Rock River has been a huge asset for this area, so it seems to be the next step in using this asset to generate clean power and provide electricity throughout the area,' said Sen. Steve Stadelman (D-Rockford). Latitude has already done smaller-scale testing, but moving to the Rock River means new challenges. 'It performs pretty, pretty well at the wastewater plant. But this is a new environment. It's a new, you know, there are new challenges. Will it will it be safe from vandalism? Will we be safe from other things we haven't thought of?' Cacciatore said. The company hopes the pilot project will generate enough electricity to power five homes. If successful, it plans to scale up from there. 'We want to help to help Rockford become a beacon of clean energy, a beacon of collaborative community involvement and advocacy for each other and for for the community and for the the greater good for the planet,' Cacciatore said. Once the grant funding is in place, Latitude hopes to have the project done within 18-20 months. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
34 minutes ago
- Yahoo
US Appeals Court Confirms Patent Validity of Acadia's Parkinson's Medication
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is among the 13 Biotech Stocks with Huge Upside Potential. It declared that the U.S. Court of Appeals maintained the legality of its composition of matter patent for the medication Nuplazid, which treats psychosis in Parkinson's disease. A research scientist looking through a microscope in a lab, symbolizing the biopharmaceutical company's innovative approach to medical treatments. The verdict supports ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) in its legal struggle with India-based MSN Laboratories and upholds a December 2023 ruling by the U.S. District Court of Delaware. A later patent claim with the same priority date cannot be declared invalid by the court. According to CEO Catherine Owen Adams, Nuplazid's patent protection has been extended to 2030. The 34 mg capsule is also protected by a separate formulation patent that runs through 2038. The U.S. FDA authorized Nuplazid in 2016 to treat delusions and hallucinations linked to psychosis in Parkinson's disease. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)'s legal stance in a different action against Aurobindo Pharma was further strengthened by the latest decision. When taken as a whole, these results solidify the company's portfolio of intellectual property in the face of generic competition, guaranteeing prolonged market exclusivity for its flagship neurological medication. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical firm that specializes in the creation and marketing of medications that treat uncommon diseases and disorders of the central nervous system. While we acknowledge the potential of ACAD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data