NYC's Public Markets Lose Millions but Fuel Small Business Success
New York City's public retail markets continue to operate at a loss, despite their role in supporting affordable food access. A recent report shows that three city-managed markets lost a combined $3.6 million in fiscal year 2024. Yet, these spaces have also helped launch successful businesses, including the acclaimed restaurant Dhamaka.
The city's Economic Development Corporation (EDC) oversees three of the six public markets: Essex Market, La Marqueta, and Moore Street Market. While these locations ran at a deficit, the EDC points out that the other three markets turned a profit, helping to balance overall costs. The agency's aim is not profitability but ensuring residents have access to fresh, affordable food.
Vendors in these markets benefit from below-market rents. At Essex Market, for example, retail space could fetch $115 per square foot on the open stock market. Instead, vendors pay an average of $91 per square foot. Some pass these savings to customers through lower prices.
The reduced rents have also allowed businesses to thrive. Dhamaka, an Indian restaurant at Essex Market, gained widespread praise after the New York Times named it a critic's pick. Its chef, Chintan Pandya, later won a James Beard Award. The restaurant's success led to the expansion of the Unapologetic Foods group, which now operates several new locations.
No recent changes have been reported in the number or distribution of supermarkets in disadvantaged neighbourhoods under the city's FRESH program since the 2024 Comptroller report.
The public markets remain a financial challenge, with three locations running a $3.6 million loss last year. However, their role in fostering affordable food access and supporting small businesses—like the award-winning Dhamaka—highlights their broader impact. The EDC continues to subsidise rents and operational costs to maintain these community resources.
