Congestion pricing: Traffic down but food business costs rise
MANHATTAN, N.Y. (PIX11) -- After one week of congestion pricing, MTA data shows traffic is down, but restaurants in the Central Business District say some of their prices are already going up.
This month, the menu at Sushi by Bou includes a $9 discount on meals — an incentive for diners dealing with the new congestion toll into Manhattan.
"We’re in it together on a good-faith policy," said Richie Romero, who owns more than a dozen restaurants in the CBD, where he’s also absorbing additional costs.
"Food distributors are adding an extra dollar per delivery, and beer companies are charging more per keg," Romero explained.
He noted that January is traditionally a slow month in the city, something the MTA acknowledges as well.
"Traffic might go up from here too, so that’s why we’re being very conservative in how we view this," said John McCarthy from the MTA.
State officials are cautiously optimistic about the six days of data released Monday.
"This has absolutely met our expectations. The numbers are impressive," said Juliette Michaelson, an MTA official.
According to the MTA, traffic south of 60th Street was down 8% during the first week. For commuters crossing the rivers into the city, travel times were reduced by 30% to 40%. Traveling crosstown during the day took 20% to 30% less time, while express bus riders from the outer boroughs shaved up to four minutes off their commutes.
Drivers have noticed the difference.
"At first we were scared because of business dying down, but we’re doing pretty good — traffic is down," said one cab driver.
However, Romero said he plans to open new restaurants in other states.
"The MTA doesn’t know how to run a business," he added.
The MTA did not disclose how much revenue it generated during the first week of congestion pricing but must raise at least $500 million by the end of the year.