NYC business owners say migrant shelters are killing sales

Big Apple businesses say they’re losing their shirts over the ongoing migrant crisis

Owners and staff at Manhattan shops and restaurants told The Post that sales have plummeted — and jobs lost — since City Hall began forking over millions to house migrants in hotels.

“We 100% will have to cut shifts, and some people will lose their jobs over the next four weeks,” said Ana Ivkosic, owner of Cafe Wattle, which is located down the block from a 492-room Holiday Inn in the Financial District that began housing migrants earlier this month.

With well-heeled tourists replaced by penniless refugees from Venezuela, Peru, and Ecuador, revenue has plunged. Total sales for menu items like $2.50 cups of coffee and $10 acai bowls are down 75% some days. The cafe used to clear $2,000 on a good day in January but now might ring up only $500.


A picture of Fotis Liberatos.
Fotis Liberatos says sales at his businesses have declined since a nearby hotel recently became a migrant shelter.
Helayne Seidman

“It has not been a decline, it’s been a cliff,” Ivkosic said, adding the café began closing early this past weekend and one staffer is already being let go. 

Restaurants owners in the area cried that once-bustling Rector Street has descended into a ghost town, which also keeps customers away.

“If you stop by, I’m dead most of the day,” said Fotis Liberatos, who runs Siena Pizza and Cannoli as well as Siena Bakehouse on the strip.


The street view of Siena Bakhouse, in front of the Holiday Inn
Sales at Rector Street eateries have plunged since well-heeled tourists were replaced by migrants at a Holiday Inn.
J.C. Rice

A paper sign affixed to the Holiday Inn window in the Financial District says that it is closed to the public.
The hotel closed to the general public earlier this month.
J.C. Rice

Businesses near the ritzy Row NYC hotel in Times Square similarly have found themselves hurting as of late last year, when the city began putting up hundreds of migrant families in the building’s $400-a-night rooms. 

Gustavo Rosario, manager of the Iron Bar & Grill located across the street, estimated that Row NYC guests made up more than 25 percent of his customers. Their sudden disappearance has forced him to lay off 12 of his 60 staffers and cut the hours of the rest.

“We’re working with minimum staff right now because there’s not much business,” he said. “Everybody in the area is paying the price — the gift shop, the smoke shop.” 


Siena Pizza and Cannoli owner Fotis Liberatos standing in front of pizza boxes
Liberatos says once-bustling Rector Street has become a ghost town since the Holiday Inn began housing migrants.
Helayne Seidman

Asif Sarker, who manages the I [Love] NY Gifts next door to Row, said sales for his store’s mementos such as $55 Fire Department sweatshirts and landmark snow globes have plunged 75 percent since migrants moved in.

Pedestrians and potential customers these days are avoiding his side of the block because hotel residents congregate in the middle of the sidewalk, wolfing down pizza while blasting music, Sarker said.

“The people, they go on the other side of the street,” he said. “They’re not coming by, so it has affected us also.” 

Several migrants staying at the Row sympathized with business owners’ complaints that guests congregating outside had been scaring off customers, but noted that it had been less of an issue this year.  


Front view of the Row NYC hotel
Tourists at the ritzy Row NYC hotel were previously reliable source of customers for nearby businesses.
J.C. Rice

“What happens is some people are out of control,” said one 52-year-old migrant from Peru who is staying at the Row with his 2-year-old son. “That’s why they’ve kicked the majority of people out. The rest of us are more calm, mostly with families.”

Others hope to one day be able to frequent and support the struggling businesses near the hotel. 

“If we get approved to get jobs, maybe we can help with that problem,” said Row resident Luis Moreno, 41, who arrived from Ecuador three months ago with his wife, four-year-old daughter, and just $150. “But since we can’t, right now, we’re using all the money we have to feed our daughter,”  he added with tears in his eyes. 


Pedestrian walk past the souvenir store I [Love] NY Gifts near Times Square.
Asif Sarker, who manages a souvenir store, said that migrants crowding the sidewalk and playing music has deterred potential customers from stopping in.
J.C. Rice

The city has opened 85 emergency shelters and five larger “Humanitarian Emergency Response and Relief Centers,” housing at least 29,100 of the more than 45,600 migrants who have arrived in the Big Apple since the spring, according to the Department of Social Services. 

Mayor Eric Adams’ administration is set to continue using hotels to manage the spiraling crisis, having recently inked a $275 million deal with the Hotel Association of New York City to house at least 5,000 migrants. 

A City Hall spokesperson said that the Adams administration has been “a strong and vocal supporter of expediting work permits for asylum seekers arriving in the U.S. so people can obtain employment and begin stabilizing their lives.”