I don't totally understand the economics of how those work in NYC. Just sheer density and throughput? Family-run shops staffed by extended family working unofficially (avoiding payroll tax, minimum wage, etc.)? Some mixture?
In the "is DC a real city?" angst, people occasionally claim there aren't any such shops in DC. But there are, it's just that the sandwiches are priced at $10-14, so people don't think of them the same way. DC shopkeepers get defensive about it, and put together spreadsheets showing that with rent, labor, etc. you just can't break even selling $6-8 sandwiches in the DC market.
2. There is definitely some level of small-scale tax evasion/paying under the table in NYC. Grey market is a lot bigger, some places will not charge tax if you pay cash.
3. Small square footage. Most deli counter setups I've seen in New York, there's basically enough room for a person to swivel between a counter and a grill, and that's about it. Less square footage means less space to pay rent on. There's almost certainly no seating so you save even more.
4. Most places like this will probably make most of the margin on drinks and snacks that are also prominently displayed, most delis also sell lotto tickets, smokes, etc. I will say that I didn't have the healthiest snacking habits before moving out of New York.
This is all anecdotal growing up in New York in the '00s. Things have certainly changed since then, in some neighborhoods the deli is an endangered species due to increasing rents. And they have never been everywhere; a deli could not afford the rent on 5th Av next to Bergdorf Goodman.
>I don't totally understand the economics of how those work in NYC. Just sheer density and throughput?
People like bodegas, they are everywhere and like someone else said: tax evasion. Bodegas love cash, and you learn to carry it otherwise you are going to have to meet a $5 - $10 min (which they aren't supposed to be doing, but do)
What is restricting them now? I knew it used to be part of the merchant-network agreement, and based on my quick searching that was due to US federal law. Then Dodd-Frank changed it to allow minimums up to $10 [0][1][2]
In the "is DC a real city?" angst, people occasionally claim there aren't any such shops in DC. But there are, it's just that the sandwiches are priced at $10-14, so people don't think of them the same way. DC shopkeepers get defensive about it, and put together spreadsheets showing that with rent, labor, etc. you just can't break even selling $6-8 sandwiches in the DC market.