FOR IMMEDIATE RELEASE:
February 5, 2025
NYC Food Distribution Alliance Launches on One-Month Anniversary of Congestion Pricing to Call for Swift Action
New Coalition Seeks Policy Fix for Essential Food Businesses & Organizations
New York, NY – One month after New York City’s congestion pricing program went into effect, leading New York food distributors, wholesalers, food banks, and allied organizations and businesses are announcing the formation of the NYC Food Distribution Alliance to raise awareness about the policy’s unintended consequences and advocate for targeted relief.
The Alliance, a coalition representing more than 200 food businesses and organizations, includes major industry leaders such as Chefs’ Warehouse, Fulton Fish Market, LP Seafood & Specialty, Food Bank For NYC, Baldor Specialty Foods, the New York City Hospitality Alliance, Acme Smoked Fish, Wellness in the Schools, Katzman Produce, New York Common Pantry, Master Purveyors, and Great Performances. Over the coming weeks and months, the NYC Food Distribution Alliance will be calling attention to the severe strain congestion pricing is placing on New York City’s food supply chain and urging policymakers to exempt essential food distributors based within the five boroughs.
“The NYC Food Distribution Alliance was established as a critical reminder that food distribution is essential infrastructure, just like utilities and public transit. Without an exemption, the affordability and accessibility of food in New York City will suffer,” said Colin O’Neil, Director of the NYC Food Distribution Alliance.
Congestion Pricing Costs Will Lead to Higher Prices for NYC Food Businesses, Hunger Relief Organizations, and Consumers
In December, a letter was sent to Gov. Hochul, which outlined the shared concerns about the unintended impacts of New York City Congestion Pricing Program on New York City’s vibrant food industry, hunger relief efforts and consumers.
In just the first few weeks of the program, food distributors have incurred significant new costs, with some Alliance members projecting annual congestion pricing expenses of $300,000 or more just to continue delivering fresh food into Manhattan. This is in addition to the substantial annual contributions these businesses already make to support public transit through the Metropolitan Commuter Transportation Mobility Tax (MCTMT).
Meanwhile, food banks and hunger relief organizations like Food Bank For NYC which operates its own distribution networks, fear that congestion pricing will hinder their ability to serve low-income New Yorkers. Food Bank For NYC says congestion pricing could cost the organization at least $30,000 a year! That’s 90,000 meals that could go to families who are already struggling to make ends meet.
“At the end of the day, Food Bank For NYC is here to feed people and empower every New Yorker to achieve food security for good,” said Leslie Gordon, President & CEO of Food Bank For NYC. “Every dollar we save on operations is another dollar we can use to help our neighbors thrive. We’re hopeful that as this policy moves forward, our City leaders will consider how this impacts nonprofits like ours and work with us to find solutions so we can continue to focus our resources where they’re needed most — on the people we serve.”
Beyond the financial concerns, congestion pricing risks undermining New York City’s public health goals, particularly efforts to address chronic and diet-related diseases. New York has long been a leader in promoting healthier eating and reducing health disparities, but rising food prices could have the opposite effect.
“Every restaurant, food bank, hospital, school, grocery store, and bodega in Manhattan depends on truck deliveries for their survival,” said Tom Colicchio, Chef & Owner of Crafted Hospitality. “While I support the goals of reducing traffic congestion and improving air quality in Manhattan, it shouldn’t come at a cost to our city’s renowned independent restaurants or hamper New York City’s well-established goals around hunger relief and curbing diet-related disease. Making sure there are commonsense exemptions for essential food service distributors based within the five boroughs and who already pay for the MTA just makes sense.”
A Call for Immediate Action
The NYC Food Distribution Alliance is urging Governor Kathy Hochul, the MTA, and New York lawmakers to implement a commonsense exemption for New York City-based food distributors that already contribute to the city’s transportation system through the Metropolitan Commuter Transportation Mobility Tax (MCTMT).
“We fully support public transportation—it’s how most restaurant workers and customers get to our businesses,” said Andrew Rigie, Executive Director of the New York City Hospitality Alliance. “But if congestion pricing is in effect, there should be an exemption for essential deliveries that must enter the zone by vehicle. Seafood suppliers can’t take the subway, so they and countless other suppliers often must pass the fee on to small businesses, making it even more expensive to run a restaurant in Manhattan, and more expensive for people to dine out.”
In tandem with today’s announcement, the Alliance is launching an Action Alert for New Yorkers to contact their elected officials directly to express support for providing targeted relief to food distributors.
“The only thing more unpopular than congestion pricing is higher food prices. But that’s exactly what we can expect to see as a result of congestion pricing in Manhattan without meaningful relief,” added O’Neil. “We’re calling on Governor Hochul and New York lawmakers to enact a commonsense exemption that protects the businesses and nonprofits feeding New Yorkers while still advancing the program's goals of reducing congestion and improving air quality.”
About the NYC Food Distribution Alliance
The NYC Food Distribution Alliance is a coalition of more than 200 food distributors, wholesalers, food banks, restaurants, and small businesses working together to protect New York City’s food supply from the unintended consequences of congestion pricing.
For more information, visit www.fooddistributionalliance.com or contact: info@fooddistributionalliance.com
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