"Bad news for pizza connoisseurs across the city: the original Di Fara's location in Midwood was shut down today and seized by the New York State Department of Taxation and Finance over unpaid taxes.
The Midwood pizzeria, located at 1424 Avenue J, has two warrants for unpaid taxes over the last two years, totaling $167,506.75, according to James Gazzale, spokesperson for the New York State Department of Taxation and Finance.
An employee at the Williamsburg Di Fara's location confirmed the closure with Gothamist, and said she knew nothing else about it, adding that their location is "the same owner, but separate." The store has been owned and operated by Domenico DeMarco since 1964."
How does this happen? A place around this long and seemingly SO successful failing to pay their taxes? Can anyone explain?
Link - (
New Window )
The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.
The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.
They charge 5 dollars per slice, have lines out the door, are regarded by many to be "the best" pizza in NYC (which may not pay the bills but does bring in the tourists) and recently opened a kiosk in Williamsburg. Just seems crazy they wouldn't be able to afford their tax bill or just stop paying.
Not sure if this is the case with Di Fara but some of the New Haven places have been around so long as family business they get a ton of extended family claiming a piece of them and they take out loans and mortgages on the property and the business and get liens against them to the point eventually you have a village being "supported" by a pizza place.
even popular businesses have a tipping point.
again, not sure if that's the case here or if it's just tax evasion which is also common. Just because a business does well, doesn't mean they are paying their taxes.
It may be that NYS is computing the taxes in a way that the owners think is incorrect. But if that's the case there are ways to deal with it that don't get you shut down.
At any rate, another article quoted her saying they've been on a payment plan, and missed the most recent payment because they mailed it late or something. Maybe that's BS, but I'd imagine they'll be able to straighten it out and re-open soon.
My opinion.
My opinion.
Many restaurants are cash only in an attempt to keep their prices down due to credit card fees.
I thought they closed down because Kramer let gum get into the dough when he came back from the strike.
Quote:
are the greatest crime vehicle in America today.
My opinion.
Many restaurants are cash only in an attempt to keep their prices down due to credit card fees.
Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.
If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.
Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.
this is a very naive take.
I also agree, you can definitely pass processing fees onto the customer.
If a business is cash only, taxes are a big reason.
Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.
If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.
Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.
this is a very naive take.
I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.
Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.
I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.
Quote:
Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.
If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.
Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.
this is a very naive take.
I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.
Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.
I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.
So raise it a dollar and increase the product volume by a slightly lower proportion to absorb the fees into the larger price/larger product model. Or shrink the product volume by 2%.
If your accountant is telling you that your bottom line is better off protecting the customers who won't part with an extra dime vs. attracting new customers in an increasingly cashless economy, you might want to put out an RFP for a new accountant. And make sure whatever one you choose accepts credit cards.
Quote:
Seriously? This place charges $5 cash per slice for pizza, practically the cheapest food available in a restaurant.
If they cared they could do what gas stations do and have a cash vs credit price and add the 2% on for credit card customers.
Pretty sure the person paying $5 per slice isn't going to throw a fit at $5.10 and walk out in disgust. That extra 10 cents is a game changer.
this is a very naive take.
I am being naive? I don't know what you do for a living but I run a restaurant that has been in my family since 1963 and we are a cash only establishment for that very reason. We've had discussions over the years obviously about accepting credit cards but our accountant has talked us out of it due to the fees.
Now to you and I a 20-30 cent price increase is no big deal but you would be surprised by the number of comments customers make when you increase prices by that amount regardless of how infrequent.
I have never been to this pizza place so I don't know how the slices are or if they are specialty slices but $5 for a regular slice is nuts even for NYC.
Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.
especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?
I think Ben is more right than wrong. I know from experience in the North End of Boston, those cash only pastry places are corrupt AF, and shady on their taxes on top of it.
Not suggesting your business is, but I think most are cash only for a specific reason and it's not to control the cost for customers.
maybe I'm as cynical though as I think you are naive.
Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.
especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?
Ok well once again I wasn't referring to your comment or anyone's about this pizzeria I was just replying to Ben's comment on cash only establishments. Your entitled to your opinion and I am sure many people are doing shady shit who don't take credit cards with the intention to avoid paying taxes. I just take offense to basically being lumped in with them. I'm sure you would agree with me there.
Quote:
Yes, I think you're naive if you think that's a main reason *most* cash only businesses don't take credit cards. And I know you said some, so in that case sure, but I think it's probably rare.
especially when they're charging $5 per slice of pizza. Does that sound like "keeping down prices for customers" to you?
Ok well once again I wasn't referring to your comment or anyone's about this pizzeria I was just replying to Ben's comment on cash only establishments. Your entitled to your opinion and I am sure many people are doing shady shit who don't take credit cards with the intention to avoid paying taxes. I just take offense to basically being lumped in with them. I'm sure you would agree with me there.
no offense intended, and I don't think Ben meant everyone one of them (I sure didn't).
Not sure if this is the case with Di Fara but some of the New Haven places have been around so long as family business they get a ton of extended family claiming a piece of them and they take out loans and mortgages on the property and the business and get liens against them to the point eventually you have a village being "supported" by a pizza place.
even popular businesses have a tipping point.
This is the first thing I thought of when I read that this place had no issues attracting customers.
To my knowledge this is the last resort for the tax dept. they really don’t want to shut you down but are forced to when they are ignored
That’s a lot of dough.
It’s not NYC. It’s the State.
I don't think that's a rule... I don't carry much cash and that's becoming the norm these days. About the only things I use cash for are shoe shines, tips and *really good* cash-only establishments, though DiFara is one of the latter. Anything in between that's cash-only, I don't even consider.
A brand-new cash only place would likely fail quickly. The ones that can succeed generally are in the Northeast and are considered mainstays.
pj referenced bakeries. Go to a couple pastry shops in Boston and the lines are around the block and are cash only. Some make it convenient by plunking down an ATM inside. A lot of old school Italian restaurants and pizza joints are cash only. They survive on their reputation and years of excellent goods.
re-opening confirmed per the Post - ( New Window )
I know it's hard to avoid in restaurants, but for these older places it's probably even harder and that is disgusting.
The owners prefer to take that money out for themselves rather than paying it to the State of New York? Or else, the business becomes unprofitable if it has to pay taxes? Those are just guesses based on things I've seen over the years.
the ONE thing I hate about NYC, all these merchants NOT taking credit cards or requiring $10 minimums.
Quote:
Our two-day local nightmare has come to an end: According to an Instagram post shared last night and another shared this afternoon, Di Fara Pizza will reopen at 2 p.m. today after being seized by tax authorities on August 20. All hail the pizza gods, may they always smile upon us.
re-opening confirmed per the Post - ( New Window )
This is great news. I was worried the tourists were going to find the good pizza places (like Scarr's or Lazzara's) if DiFara stayed closed much longer.