Economists warn Mamdani’s public grocery stores could hurt NYC grocers
NEWYou can now listen to Fox News articles!
As New York City Mayor Zohran Mamdani moves forward with plans to open city-owned grocery stores, economists and local business owners warn that the proposal could crush small grocers and leave taxpayers with a hefty bill.
The initiative, a key commitment of the Mamdani campaign, will establish city-supported supermarkets across the city in a bid to reduce food costs.
Adam Lehodey of the Manhattan Institute believes the city can address food affordability more effectively through private sector partnerships and existing aid programs rather than operating grocery stores.
“I think it’s a really distracting and pretty wasteful distraction,” Lehodey told Fox News Digital. “There is an easier and better way to solve the problem.”
NYC VOTERS ARE FLOWING INTO FREE SOCIALIST-STYLE GOODS AS MAMDANI TRIES TO FREEZE RENTS, CITY-MANAGED STORES
The first location is expected to open in 2027 in Hunts Point’s Bronx neighborhood as part of the Peninsula redevelopment project at the former Spofford Juvenile Detention Facility, according to the mayor’s office.
The larger redevelopment plan includes 740 affordable housing units, more than 50,000 square meters of public open space, 30,000 square meters of light industrial space and more than 50,000 square meters of community facilities. It will also include a 20,000-square-foot grocery market intended to serve the South Bronx.
MAMDANI’S PUBLIC GROCERIES COULD HAVE DEVASTIOUS EFFECTS ON THE CITY’S FOOD SUPPLY
Lehodey also warned that city-supported stores could put small neighborhood grocers at a disadvantage because the projects would receive public support that private businesses do not.
“Yes, prices may be a little cheaper, but that comes at the cost of other businesses running sustainable operations,” he said.
He argued that by subsidizing the projects, the city was also sacrificing valuable public land and potential revenue.
MAMDANI’S WALL STREET FOUNDATION LEADS TO CRITICISM OF THE ANTI-BILLIONAIRE AGENDA
“This land has value,” Lehodey said. “By giving it away for free, the taxpayer is still losing money and we are losing revenue that could be spent on other things.”
A second city-supported grocery market is scheduled to open next year at La Marqueta, a public market space in East Harlem. The city plans to spend about $30 million to build the place.
Critics question whether another grocery option is needed in the neighborhood. There are approximately 45 grocery stores within a 35-minute walk of the proposed site, according to analysis by Fox News Digital.
These stores range from large chains like Whole Foods and Lidl to smaller neighborhood markets and bodegas. Public transport is also well located in the area; Numerous subway and bus lines offer residents a variety of ways to reach nearby grocery options.
Some local grocers say the city-backed market could drive away customers and hurt already thin profit margins.
‘I hope we don’t lose customers’
People shop at a local supermarket in the Sugar Hill neighborhood of New York City’s Manhattan borough on April 9, 2026. (Charly Triballeau/AFP/Getty Images)
Despite the abundance of nearby grocery options, some local store owners fear the city-supported market could undercut existing businesses by offering lower prices backed by public subsidies.
“Of course it’s going to impact the store,” said Sarah Kang, manager of CTown Supermarkets, about a 35-minute walk or one subway stop south from La Marqueta.
“A lot of people walk 20 to 30 minutes to get here,” he told Fox News Digital. “I don’t think they’ll be willing to make the trip if they find a cheaper supermarket. This will affect the smaller markets. Definitely.”
“I hope we don’t lose customers,” Kang added.
The impact may depend on proximity to the proposed site, said Joel Martinez, manager of a supermarket at 128th Street and Frederick Douglass Boulevard, about a 30-minute walk north of La Marqueta.
HERE ARE MAMDANI’S IMPORTANT ECONOMIC QUOTES FROM FREE BUSES TO MARKETS IN THE CITY
La Marqueta, a Latino marketplace in East Harlem, was chosen as the location for the first city-owned grocery store, announced by New York City Mayor Zohran Mamdani on April 14, 2026. (Kendall Rodriguez/Newsday RM/Getty Images)
“I hope this doesn’t affect us,” Martinez said in a conversation with Fox News Digital. “The store will be a little further away from us, which is a good thing. But it will affect the smaller businesses that are closer.”
Bodegas and small grocery stores are staples. New York City Neighborhoods often serve as the primary food source for nearby residents.
CLICK TO DOWNLOAD FOX NEWS APPLICATION
Similar proposals for grocery stores and markets owned and operated by local governments have emerged in other cities. including Boston.
Atlanta officials appear to have spearheaded the effort. municipally supported grocery store It aims to improve access to food in underserved communities.
