Small, minority-owned establishments define neighborhoods throughout New York, supporting jobs, and serving as the lifeblood of local economies. But with food, labor, energy, and rent costs rising rapidly, local businesses are operating on increasingly thin margins. Last year, 42% of restaurants weren’t profitable, struggling to take on new costs without driving away customers. Rather than advancing measures that would provide relief to restaurants and their customers, Albany lawmakers passed a bill that will drive food costs even higher. As this legislation heads to her desk, Gov. Kathy Hochul should consider vetoing this measure as part of her commitment to making New York more affordable and cutting red tape for Main Street entrepreneurs.
Small business owners across New York have repeatedly voiced concerns about the misguided Food Safety and Chemical Disclosure Act (A1556-G). The policy creates unnecessary and costly regulations for food producers and distributors, with the impacts falling directly on small businesses, locally owned eateries, and families on a budget. Compliance costs are expected to add $1.8 billion in expenses for suppliers, translating into higher prices throughout the supply chain and at the register.
Despite these increased costs, small business owners are reluctant to raise prices and offer fewer choices to their customers. They rely on their neighbors, friends, and family to be their most loyal patrons. Whether it’s at a restaurant, health and wellness shop, or bodega, providing high-quality, affordable options to the community is their daily charge. Well intended but misguided policies shouldn’t undermine access to affordable groceries, supplements, and pre-packaged foods. But with local establishments already navigating an unpredictable economy, new overhead costs may force businesses to consider reducing or eliminating offerings, raising prices, or making other difficult choices.
Even if families shift their habits and dine out less frequently, they’ll feel the impacts of rising costs at the supermarket. An independent analysis found that families will spend an additional $620 each year on groceries if this bill is signed into law. More affordable, shelf-stable products will be removed from stores, and the remaining products will see a price increase.
The cost of living has already increased by more than 5% over the past year, causing families to think twice before going out to eat or ordering takeout. But buying groceries is a necessity. Whether you’re shopping at a corner store, local market, or major grocery store, the economic impact will be hard to ignore.
Black and Brown communities are often hit hardest during times of economic uncertainty. Black and Latino families are more susceptible to inflation changes than their counterparts, spending a higher portion of their income on groceries and electricity as costs climb. This policy will further increase existing financial burdens, pushing up costs for consumers and decreasing foot traffic for small business owners.
I have seen firsthand the need for minority and immigrant-owned restaurants and small businesses. They are where families go to celebrate birthdays, where hardworking people gather after long shifts, and where neighbors can come together and feel a sense of belonging. In so many ways, family-owned shops are the cornerstones of our communities. They should be prioritized during this affordability crisis — not left to shoulder the unintended consequences of duplicative regulations.
New York’s family businesses are integral to the character of our neighborhoods. If lawmakers truly want to uplift and empower local communities, they must protect the small businesses that feed them, not create unnecessary and expensive government mandates.
Phil Andrews is president of the Long Island African American Chamber of Commerce and founding president of the New York City Minority Small Business Chamber of Commerce.
