The Manhattan Chamber of Commerce hosted a roundtable discussion with local restaurant owners and Dashers to discuss their negative experiences stemming from the unintended consequences of New York City’s extreme minimum pay rate for delivery workers.
The roundtable, organized in partnership with DoorDash, featured discussions around the impacts being felt by Manhattan small businesses and food delivery workers, along with how more proposed NYC Council bills could exacerbate these problems.
The event was hosted at Manhattan-based restaurant Cafe Nunez, a family-owned restaurant in Midtown, where Manager Assistant Maria Frezada, shared her own personal experience with the negative impacts of the City’s policy.
“The message from today’s roundtable is clear – the City’s minimum pay rate for delivery workers has been harmful to local restaurants and delivery workers alike,” said Jessica Walker, President & Chief Executive Officer at the Manhattan Chamber of Commerce. “We know that local businesses are the cornerstone of our communities and it is our mission at the Manhattan Chamber of Commerce to advocate for the more than 125,000 businesses across the borough that we represent. We’d like to thank all of the participants in today’s discussion, and we hope our elected officials will hear out these concerns and work together to stop future extreme regulations on this industry that would hurt New Yorkers’ pockets.”
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“We’ve been squeezed since the start of the City’s minimum pay rate for delivery workers, which has only increased costs for my customers and hurt small businesses like mine. My restaurant’s revenue has already dropped significantly compared to before the rule went into place, and more city regulations targeting changing the way customers tip will only discourage customers more,” said Maria Frezada, Manager Assistant of Cafe Nunez. “It was great to gather with other small business owners and Dashers to make our voices heard and make sure elected officials hear our concerns.”
The City’s minimum pay rules have cost millions of dollars in lost orders for local restaurants and meant fewer earning opportunities for Dashers. Based on DoorDash’s estimates, the rule will cost Manhattan restaurants $53 million annually and the number of new Dashers in Manhattan has fallen by 18% compared to before the new minimum pay rate took effect. In a two-month sample since the implementation of the minimum pay rate, NYC restaurants and other local merchants lost $17 million in revenue and NYC consumers have placed an estimated 850,000 fewer orders on the DoorDash Marketplace than they would have had the market remained unchanged.
Photo credit: Manhattan Chamber of Commerce.
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