Can't talk about New York City but everywhere I have ever been and seen Bitcoin ATMs, they all have been very terrible. I don't know why Bitcoin ATM owners think it's a good way to manage business with extraordinarily high fees but besides Bitcoin enthusiasts no one uses ATM. People only use Bitcoin ATMs just once to test it and experience what it looks like, just like a fan thing. A friend of mine has Bitcoin ATM in his restaurant since 2016 and rarely one or two tourists a month come to use it and take pictures of it, that's all.
Don't use Bitcoin ATMs. It's better to buy Coinbase card if you live in the USA or get a XAPO card if you travel often. You'll get better fees compared to Bitcoin ATMs and these cards offer good ATM withdrawal fees.
Probably they use it for tax avoidance, that's why even though people are really rare to use ATMs, but the number of Bitcoin ATMs are still high. There are no stupid businessmen, there must be something that they can use it to take advantage or benefit.
Have you ever see small business in your country that have no customer and still survive until now? it's the another example.