Fresh Direct’s government-subsidized move to the Bronx could spell the end to one Queens businessman’s American dream.
Gus Kaloudis, 36, poured his life savings into the New York Deli in Long Island City when he bought it three years ago. The busy eatery seemed like it would be a dependable cash cow since it was the only nearby lunch joint for Fresh Direct and other workers in the industrial area.
But when news hit that the online grocer would pack up and move to the Bronx in 2015, Kaloudis, a father of three, knew his livelihood was in jeopardy.
“How would you feel if 50% of your customer base disappeared,” he said in between ringing up customers at his Borden Ave. deli.
“I haven’t been able to catch my breath.”
He doesn’t know how he will stay afloat without Fresh Direct drivers, corporate staffers and vendors stopping by his store every day for their morning newspaper or a pack of cigarettes.
The city, borough and state cut a deal last week that includes $128 million worth of tax breaks and financing to lure the online grocer to stay in New York City. The company, which says it needs to relocate to a bigger plant to grow, had flirted with the idea of moving to New Jersey.
The company employs about 2,000 workers out of its Long Island City warehouse and plans to add 1,000 new jobs by 2020.
When it leaves Long Island City, Fresh Direct suppliers such as Scott Pulusc, who visits the deli three times a week, usually to grab a deluxe cheeseburger, will no longer have a reason to patronize Kaloudis’s store.
“He is going to lose a lot of business,” Pulusc said.
Kaloudis admitted he’ll likely have to lay off at least half of his staff of 10. Employee Felix Molina, who has worked with Kaloudis at other restaurants for the past 15 years, said he doesn’t know what the future will bring for him and his family.
“We’re going to lose all the customers,” Molina said.
Kaloudis’s store is open Monday through Friday and a half-day on Saturday since without a residential base, there is no business on the weekends. He estimates half of his customers are affiliated with Fresh Direct.
As for other merchants in the area, a Long Island City business organization official said the area should be able to absorb the loss.
“Long Island City has a very diverse business community with a tremendous history of industrial use ,” said Dan Miner of the Long Island City Partnership.
But that’s little comfort for Kaloudis, a college dropout who has worked in the restaurant industry most of his life.
“Do you think I could just get a job?” he asked.
