Don’t know about NYC, in other places (eg. Italy) cash payment is attractive to the stores because it can remain hidden to taxation.
Restaurants particularly like cash because of two reasons:
1. Food is perishable, it’s easier to justify discrepancies between food bought and revenue.
2. They often pay workers under the table.
I once naively asked why so many ice-cream vans were based in the UK council housing estate where I grew up.
It was pointed it out that it was the perfect tax-free income mechanism; no vendor certification or registration, no fixed property, minimal ingredients, cash transactions...
