By: Bob Otto

Grocery store owners in New York City are expressing outrage over the city’s decision to allow licensed fruit and vegetable vendors to set up shop in close proximity to their stores, claiming it severely impacts their businesses. The New York Post reports that some vendors are located less than 30 feet from grocery stores, leading to significant profit losses for the latter.

In Forest Hills, Queens, a fruit and vegetable stand has been placed a mere 25 feet from a Key Food supermarket on the north side of Queens Boulevard, between 71st Avenue and 71st Road. Nelson Eusebio, the political director of the National Supermarket Association, which represents 600 grocers including Key Food, C-Town, Associated, and Bravo, voiced his frustration. “They know they can pick off our customers,” Eusebio fumed to NY Post’s Carl Campanile.

The Key Food store features window displays promoting blueberries and asparagus, while the nearby vendor sells the same produce just steps away. This scenario exemplifies the tension between street vendors and grocery stores operating almost side-by-side.

According to the city Health Department, which oversees these vendors, there are about 500 licensed fruit and vegetable vendors across New York City. The program aims to provide fresh produce to areas that lack access to healthy food options. However, grocers argue that upscale neighborhoods like Forest Hills do not fit this description and that the competition is unfair, especially given the overhead costs grocery stores must cover, such as unionized labor, property expenses, and utility bills.

“This is a big burning issue,” Eusebio stated to the NY Post. “We’re not against the vendors making a living. But don’t put them next to any store. It’s gotten out of hand.”

John Catsimatidis, the owner of Gristedes supermarkets, echoed Eusebio’s sentiments, asserting that allowing vendors to set up so close to his stores “destroys our produce department.” He claimed that the current policies reflect a broader anti-business trend in New York City, contributing to decreased business, increased shoplifting, and the closure of many drugstores. “Maybe the grocery stores will close,” he told the NY Post

Both Eusebio and Catsimatidis expressed frustration with Mayor Eric Adams’ administration and the City Council for not addressing their concerns.

However, some residents see the vendors as a beneficial alternative. Paula, a 75-year-old retiree who frequents both the supermarket and the fruit stand, supports the vendors due to her limited income and the high cost of living in Forest Hills. “Key Food has everything, but prices are high. At the fruit stand, lemons are cheaper, broccoli is cheaper, tomatoes are cheaper, grapes are cheaper,” she noted. “Don’t blame the vendor. They’re looking to survive. These supermarkets make a lot of money. They’re selling a ton of products.”

On the other hand, Shawn, an office worker from Forest Hills, sided with the grocers, stating that the proximity of vendors to supermarkets constitutes unfair competition. “They’re taking business from the supermarket. They should give a percentage of the business to the supermarket,” he suggested.

Street vendors pay a $200 annual permit fee and between $300 to $500 to store their carts, though some leave their tables on the sidewalks around the clock. Matthew Shapiro, legal director of the Food Vendor Project at the Urban Justice Center, argues that the competition, while real, is not unfair..