East Harlem Businesses Stalled by Subway Construction

The MTA's multibillion-dollar Q train expansion has caused severe financial strain for small businesses in East Harlem.

Updated on Sept. 28, 2026 in Openings & Closings

A weathered steel construction barrier and safety netting block a sidewalk in front of a brick commercial building in New York City. — Small businesses in East Harlem report severe financial losses as ongoing Second Avenue Subway construction restricts access to storefronts. AI Illustration. Upload story photo >

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Should government projects prioritize financial support for local businesses disrupted by long-term construction?

Long-standing businesses in East Harlem have reported dramatic revenue losses as a result of the ongoing $8 billion Second Avenue Subway expansion. Construction barriers and equipment have restricted access to storefronts, forcing some owners to cut staff.

Why it matters

The project, intended to extend the Q train into East Harlem by 2032, has created significant operational challenges for local shops. Business owners report that the combination of physical barriers and legal disputes has threatened their long-term viability.

Affected storefronts have seen revenue drops ranging from 40% to 90% since construction began. Casa Ricardo's Steakhouse reported a 40% decline in sales, while Eagle Tile lost nearly 90% of its contractor business and laid off three workers.

The players

Metropolitan Transportation Authority

This is the public agency responsible for public transportation in New York City and the surrounding suburbs.

Casa Ricardo's Steakhouse

This local dining establishment has operated in East Harlem and is currently facing significant financial hardship due to transit construction.

Eagle Tile

This business has served the local community for decades but has seen a nearly total collapse in contractor work since barriers were installed.

Go Donut

This shop has experienced a 70% decline in sales since subway construction equipment and fencing were placed outside its entrance.

The details

The MTA has utilized heavy equipment, fencing, and construction barriers that reduced the sidewalk width at Casa Ricardo's Steakhouse from 15 feet to 6 feet. Owners have also faced legal challenges and costs, including over $1 million spent by the owner of Casa Ricardo's on disputes related to the MTA's installation of vibration monitors.

Construction work began in front of the Go Donut shop four months ago.
The MTA plans to complete the Q train extension into East Harlem by 2032.

Market Landscape

The challenges in East Harlem mirror the historical friction between the Second Avenue Subway project and small businesses along the construction corridor. These ongoing transit developments continue to force a trade-off between long-term city infrastructure growth and the survival of local commercial hubs.

Customers in East Harlem face reduced sidewalk access and a changing retail landscape as construction barriers obstruct storefronts. Shoppers should anticipate potential closures or reduced service hours at neighborhood staples until the project progresses.

The takeaway

Large-scale infrastructure projects often impose significant indirect costs on small businesses that operate in the shadow of construction. Entrepreneurs in these zones may need to prepare for multi-year periods of restricted access and evolving operational realities.