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Hell's Kitchen Hospitality Coalition

Keep Hell's Kitchen's independents open

eatdrinkhellskitchen.com

1,928

fewer eating and drinking places in New York State

Q1 2026 vs. a year earlier. Bloomberg reported it as the biggest net year-over-year decline in at least 36 years of BLS data, steeper than any quarter of the 2020 pandemic.

4

straight quarters of decline

Year-over-year drops from Q2 2025 through Q1 2026, the longest streak since 2021.

1,102

of those were in New York City

More than half the state's net loss: 24,383 places in Q1 2025, 23,281 in Q1 2026. Manhattan alone: 204 fewer.

Costs: health insurance +12.9%, utilities +8.5%, business insurance +7% for New York-region service businesses last year. Developers get tax incentives and tenants get rent stabilization. Independent restaurants and bars get nothing comparable.

Lead priorities

  1. Commercial lease renewal rights. Pass the Small Business Jobs Survival Act: a right to renew, and fair terms at renewal, so a decade of work can't vanish with one landlord letter.
  2. Pooled health insurance. A city or state-backed pool so a 15-person restaurant can buy coverage at the rates a large employer gets.
  3. A warning before first-time fines. A cure period for first-time, non-hazardous violations instead of an automatic fine.

Parity

  • Commercial lease renewal rights
  • Tax breaks for fair landlords

Costs

  • Pooled health insurance
  • Utility rate relief
  • Raise the Commercial Rent Tax threshold
  • Liability insurance review

Capital

  • Low-interest loans and grants

Operations

  • A warning before first-time fines
  • Consolidated inspections
  • Faster permits and liquor licenses
  • Cheaper multi-year outdoor dining licenses

Customers

  • Hell's Kitchen dining marketing
  • Construction-impact grants
  • Sanitation and street safety

Influence

  • Funding for a formal association
  • A staff liaison in each office
  • Quarterly roundtables
Sources: U.S. Bureau of Labor Statistics (QCEW); Bloomberg, Oct 13, 2026; U.S. Bureau of Labor Statistics (QCEW); Federal Reserve Bank of New York, Mar 4, 2026. Establishment figures are net counts (openings minus closings), New York State and City, Q1 2026 vs. Q1 2025.