NYC Mayor-Elect Zohran Mamdani’s Policies Spark Backlash as Top Restaurateurs Halt New Projects and Warn of “Anti-Business Future”

New York City Mayor-elect Zohran Mamdani has not yet taken office, but several prominent restaurateurs are already scaling back or abandoning major expansion plans in response to what they describe as his radical, anti-business policy proposals. The backlash underscores growing tension between the incoming administration and the city’s hospitality sector—one of New York’s largest economic engines.
(**General NYC economic context: NYC Hospitality Alliance, The New York Times)

High-profile restaurateur Stratis Morfogen, known for ventures such as Brooklyn Dumpling Shop and Diner24, told Side Dish he has canceled three upcoming New York City openings, including a nearly finalized deal in Midtown West.

“I waited for the election before signing, and now I’m not signing,” Morfogen said. “We just don’t feel that this mayor is suitable to supporting small businesses.”

Just a week earlier, Morfogen opened his first Miami restaurant—part of a growing trend of New York operators expanding into business-friendly states like Florida and Texas.
(General trend reported by WSJ, Bloomberg)

He also plans to open Diner24 Miami in 2026, further accelerating his shift away from the city where he built his career.

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Other NYC restaurateurs make the same decision

Veteran nightlife operator Richie Romero, who has run successful concepts across Manhattan, said Mamdani’s surprise victory over former Gov. Andrew Cuomo (Independent) and Republican Curtis Sliwa prompted him to freeze his own NYC growth plans.

The only project he is still completing is a new East Village Sushi by Bou, already under construction before the election.

“The hatred of Jews, socialism, the economics — it’s too much,” Romero said of Mamdani. “I had to be vocal. I get attacked, but it is what it is.”

Romero, who previously hosted fundraisers for Cuomo, is launching a coalition aimed at “fighting socialism”, saying NYC’s political climate is driving entrepreneurs elsewhere.
(**General reporting on NYC small business political frustrations: NY Post, The Atlantic)

He is now focusing on 12–15 new concepts in Atlanta, Dallas, and West Palm Beach—cities he describes as “pro-business and predictable.”

Stratis Morfogen told Side Dish he’s pulling the plug on three new establishments, including one in Midtown West. Matthew McDermott
We want to wait and see what [Mamdani] does. His radical changes scare the s–t out of small business owners,” Morfogen said.

Morfogen halts multiple leases across Manhattan

Morfogen said he walked away from an 11th-hour deal for a new Midtown restaurant at West 32nd Street and 10th Avenue. He also paused leases for diners on the Upper East Side (East 62nd Street and First Avenue) and near the Upper West Side.

“I’m not signing any leases now. We want to wait and see what Mamdani does. His radical changes scare the s–t out of small business owners.”

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$30 minimum wage proposal sparks alarm

One of Mamdani’s most controversial proposals is raising New York City’s minimum wage to $30 by 2030—nearly double the current state rate.

Economists note that large wage increases can strain industries with tight margins, including restaurants, which typically operate at 5–10% profit margins.
(Industry context: National Restaurant Association, Forbes)

Morfogen warned:

“Fast-casual will be put out of business. A $12 burger becomes $22. With our profit margins, we can’t survive.”

He argued that higher labor costs, combined with New York’s high commercial rents, will accelerate the wave of closures already plaguing the city.

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Public safety concerns intensify business anxiety

Mamdani has long been a vocal critic of the NYPD and an advocate for budget cuts and police reforms.
(Background reported by NY1, Gothamist)

Morfogen said safety concerns are personal: he claims that undocumented immigrants assaulted members of his family in recent years, with one relative requiring hospitalization.

“Even after all the destruction with Cuomo during COVID, I was forced to vote for him because anything is better than a socialist communist with anti-small-business policies.”

He added that the atmosphere around his 24-hour Gramercy diner, Diner24, feels increasingly unsafe.

“Thank God we have a police station a block away. Imagine if [Mamdani] defunds the police. Even mentioning it gives criminals confidence.”

Critics say Mamdani’s wider agenda is anti-business

Restaurateurs also expressed frustration with other proposals associated with Mamdani and progressive City Council members, including ideas such as taxing high earners, tenant-led housing structures, and publicly run grocery stores.
(Policy background discussed in The New York Times and City & State NY)

Romero summarized the frustration:

“You see 30–40% vacant storefronts now. How will someone who is not pro-business make that better?”