Fruit Cart Man's Crushin' It: Grocery Stores Blame NYC Fruit Carts for Economic Hardship

It's the age old story of one person selling something for less than another, really.

But in 2015 in New York City, fruit carts are shaping up to be a problem, maybe, for the brick and mortar grocery stories they set up in front of, or near. 

Shops like Gristedes claim they've had to lay off workers and are losing tons of profits due to the fruit carts outside their doors, but are the carts really to blame?

According to Gristedes' owner John Catsimatidis, fruit stands have popped up in front of at least half of their NYC locations and are costing the company $7,000 per week in produce sales.

The issue appears to be that cart workers operate with much less overheard cost and are able to pass the savings on to the consumers.

Catsimatidis made a statement recently, saying, "There are a lot of guys selling produce and my [produce] supervisor said he's laid off one to two people per every store they're in front of" which is not good for workers or the company as a whole.

Though, what's the extent of the City's responsibility to ensuring Gristedes' profitability? Catsimatidis makes the case that, "It's not fair to anybody to have street vendors in front of the supermarket door that pay no real estate tax, nothing, and selling the same things these stores sell."

A coalition of residents called New Yorkers for Street Vending Reform are behind the groceries' in this battle, citing that the same profit nabbing is going on outside of the Morton Williams on Third Avenue, where Mohammad Hashmat has set up his fruit stand.

Hashmat sees it like this: "My customers are different from this store's customers. They're not the same because this store is expensive and this is cheaper. This is not for rich people."

usangels It is so hard to pick just one fruit, good luck to everyone! #NYCFruitStand #UsAngelsGiveaway


So maybe, the majority of people choosing the fruit man outside, rather than the produce section inside, are those who can't easily afford the prices inside the shop, and save a buck by buying produce outside.

The other thing is that markets like Whole Foods, which is growing every day, have got to be cutting into smaller markets' profits. So it would appear that the "middle class" of grocery stores is feeling the squeeze with cheaper wares for sale on the streets, and a fancier affair not too far away.

What is for sure is this: if you're in business in NYC, and you're complaining more about losing profits rather than adapting and gaining them back, you're not going to be in business for long if a sidewalk card table can take $7,000 per week from you. 

Check out 7 Reasons You Love to Hate Your Roommates in NYC

[via DNA Info]

[Feature Image Courtesy TheBlinker.com]

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