The New York City Council passed the Green Cart bill on February 27, 2008 with lightning speed, presaging a dire future for Korean produce stores and delis. In what some are calling an early executive application of the bill, the fruit and vegetable vendor-carts will show up on the streets throughout the City's five boroughs by the end of May. Industry analysts are predicting that Korean-owned businesses in the affected areas will experience a real and rapid drop in sales income.
Korean business groups have been strongly against this bill, continuing a vocal opposition campaign up to the last minute before the bill was passed by the New York City Council. The bill sailed through with little final regard for any opposition, leaving Korean opponents disappointed – and worried. Korean produce stores and deli owners said that because of a long-term economic depression they have already suffered business losses; now though, they expect the worst.
The Green Cart bill is intended to focus on economically weaker neighborhoods in order to bring fresh produce to local residents by making it available on the streets. This is part of an effort to better the health of the city’s residents across the five boroughs. According to the bill, a total of 1,000 vendors will set up on the streets; 500 in the first year, and another 500 the following year. The Council foresees 350 carts each in the Bronx and Brooklyn, 100 in Queens, 150 in Manhattan, and 50 in Staten Island. The City Council had originally decided to place 1,500 carts on the city streets, but lowered the number in response to protests.
The problem that many envision with the carts is that there are no rulings or regulations to prohibit street vendors from operating in front of or near stores and establishments that sell similar goods. The street vendors will have very low prices for their produce, perhaps even as low as half of what supermarkets or vegetable stores and delis currently charge for the same products. Owners therefore are legitimately worried that there will be no way to protect themselves from the loss of business, and thus loss of income.
Korean produce store owners are worried because, as some analysts point out, the carts and stores are in lopsided competition with each other – the green carts vendors will not pay sales tax, and have no rent or employee expenses (salaries, benefits, etc.). The City has not yet finalized detailed regulations for the street vendors, leaving many people to think the vendors will essentially do what they want. Current regulations are rather lax. For example, if the owners of existing stores violate regulations twice in a two-year period, they can have their business licenses suspended. Street vendors would only face similar punishment after four violations in a one-year period.
What is the solution? First, those involved with the Korean Fruit and Vegetable Association will focus on adding detailed regulations to the bill in the next three months. They will work to appeal the bill in an effort to minimize the damage they expect to their businesses. They are encouraged by the fact that some New York City Council members, as well as members of the NYC Health Department, both instrumental agents in this bill, have been responsive to Korean overtures regarding added regulations. Korean businessmen believe that they will be given a fair chance to address the problems, and that their input will be taken into consideration.
Representatives of the Korean produce business are pushing for regulations that call for specified distances between vendors' carts and existing stores. In addition, they want to see tighter rules regarding where and how the carts can move, and limitations to activities the carts can engage in. They also place great emphasis on regulations that would even the balance between street vendors and store owners, in terms of management and control issues, such as waste disposal, street cleaning and quality control.
