City officials on Monday agreed to slightly ease new capacity restrictions at Christkindlmarket in Daley Plaza, amid complaints from vendors that the new rules were threatening their ability to make a profit.

Christkindlmarket organizers have said, at the last minute, the city imposed a 1,553-person capacity for the popular German-themed holiday market this year.

The capacity limits have led to long lines of customers waiting to get into the market, even amid the persistent snow on Saturday, and vendors said their business has dropped 40% so far this year.

"We're seeing a mostly empty market. Unfortunately, normally even the Monday after Thanksgiving, this would be full of people," said Mark Tomkins, president and CEO of The German American Chamber of Commerce of the Midwest, which runs Christkindlmarket.  

Vendors have been frank since opening day that the new capacity limits are hurting their businesses.

"I think it's very easy to understand: we need the crowds to survive," said Wolfgang Poenninghaus, who owns two shops at Christkindlmarket, selling gifts and gourmet pretzels.

Poenninghaus said business this year has been the worst in his 22 years at Christkindlmarket.

"Last weekend, due to these new regulations, plus the weather, even though we had a line outside, it was the worst weekend ever since we exhibit on this market," he said.

On Monday, the city agreed to increase capacity at Christkindlmarket by 1,000 people, according to Tomkins 

While an improvement, the new capacity limit would still be lower than in 2021, when the city set a limit of 3,494 visitors at a time due to social distancing measures amid the COVID-19 pandemic.

"Unfortunately, that's still 40 percent below our COVID levels. So, pandemic-era social distancing minus 40 percent," Tomkins said. "Obviously, we want to find a good solution with the city that allows people to enjoy the market, keeps everybody safe, but at the other point, if it stays this empty, our vendors aren't going to survive."

In a statement, Mayor Brandon Johnson's office said it was working with Christkindlmarket organizers "to increase capacity in a safe and organized manner."

"The City will continue to work with the organizers to manage the flow of visitors so that the volume meets the needs of the vendors. CFD will offer additional training to event security so that they have adequate preparation to manage an increased flow of visitors, and we will continue to make adjustments as needed," Johnson spokesman Cassio Mendoza said.

Tomkins said, other than during the pandemic, Christkindlmarket has not had a capacity limit set by the city, and has often seen crowds of as many as 5,000 people on the busiest days of the market.

Organizers claimed the city made the change this year based on a new interpretation of Chicago's municipal code, informing vendors of the new restrictions just 12 hours before opening day on Nov. 21.

"Obviously, we are frustrated because these are all small businesses. They've been hit this year with tariffs. They've been hit with increased costs and rising costs of everything, and they make all their plans all year-round just to be here for our Chicago Christkindlmarket, and literally the day as they're opening, everything got changed," Tomkins said.

Many of the Christkindlmarket vendors come from Germany every season. Organizers said capping the market at 2,500 people will mean many vendors won't be back next year, which will be the 30th year of Christkindlmarket.

"This is not a Christkindlmarket display financed by the city. We vendors pay rent and finance this whole market, so we need real revenue. We need money to come in," Poenninghaus said. "We need to get back, maybe not to the 5,000, but 3,500 – with that, we would be happy."

"If this doesn't get fixed, this plaza will be completely empty next year. So all the options have to be on the table," Tomkins said.

The mayor's office said it will continue to work with Christkindlmarket on a longer-term solution, including possibly relocating the market in 2026.

"The City appreciates the vendors and organizers who have made Christkindlmarket into an iconic holiday-season destination for Chicagoans and tourists alike. The enormous success of Christkindlmarket has pushed the limits of the capacity thresholds for Daley Plaza. The City's top priority will remain ensuring that the event is held safely and successfully for all involved," Mendoza said. "We will continue to work with event organizers to evaluate possible alternative locations for next year."