NYC Street Vendors Struggle as Costs Rise and Tourism Declines
"On a $3,000 daily revenue day, I net about $200 after expenses."
— Tamer Hassan, Times Square vendor
New York City street vendors are facing mounting financial pressure from rising costs, reduced tourism, and increased competition, leaving many with razor-thin profit margins. Mayor Zohran Mamdani has proposed a reform package aimed at easing these burdens, but for some vendors, the outlook remains grim.
Squeezed from All Sides
Tamer Hassan, a vendor on 49th Street near Times Square, plans to leave the industry within five years. Despite raising hot dog prices from $3 to $5, his profit margin remains just 80 cents per dog, swallowed by supply costs. On a day when he brings in $3,000 in revenue, Hassan nets only about $200 after paying for food, staff, and maintenance.
Abdelhafeez Aly, who has worked in the Financial District since 1991, reports daily supply costs exceeding $400. On a good day, he earns just $10 per hour.
Vendors cite escalating costs across the board:
- Cheese, meat, coffee, and dairy
- Ice and paper cups
- Gas prices above $4 per gallon, partly due to the Iran war
The Permit Problem
A major structural issue is the permit system. New York caps street vendor licenses at 6,880—a limit set in 1979. Many vendors are forced to rely on third-party permits, costing up to $20,000 per year.
A 2025 City Council bill will lift that cap, requiring nearly 17,000 permits by 2031. Some will be reserved for veterans and disabled vendors.
The Mamdani administration has also:
- Appointed Carina Kaufman-Gutierrez as vendor czar
- Created a Division of Street Vendor Assistance
- Proposed a bill allowing carts to sit two feet from curbs to reduce ticketing
Challenges Beyond City Hall
Several major pressures lie outside government control:
- Declining tourism: International visitors fell 3% between spring 2024 and 2026.
- Remote work: Fewer office workers mean less foot traffic in business districts.
- Congestion pricing: A $9 daily toll to enter central Manhattan adds to operating costs.
- High cost of living: Price-sensitive customers force vendors to keep prices low to retain regulars.
Vendors Voice Skepticism
Mohamad Mohamad, a vendor at Columbus Circle, expressed doubt about Mamdani's ability to solve demand issues, despite supporting the mayor during his campaign.
Hassan stated that $12 is a fair price for a meal, but added he is "counting down" to leaving the business.
The mayor's campaign promise to "make halal $8 again" aims to lower platter prices from roughly $10 by reducing operating costs and increasing permit availability. Whether that promise can survive the economic headwinds remains an open question.