Mamdani’s Grocery Plan Draws Fresh Backlash
New York City Mayor Zohran Mamdani is pushing ahead with a plan to open city-owned grocery stores across the five boroughs. Supporters frame it as a way to make food more affordable. Critics say it looks a lot more like a costly government experiment.
The idea has sparked strong pushback from economists and small business owners who worry the city could end up competing with private grocers that already run on tight margins. Their argument is simple: if the goal is to help people buy food, the city already has other tools it can use without stepping into the grocery business.
Adam Lehodey of the Manhattan Institute did not hold back. “I think really it’s a distraction and a pretty wasteful distraction,” Lehodey told Fox News Digital. “There’s an easier and better way to solve the problem.”
The first store is expected to open in 2027 in Hunts Point in the Bronx, tied to the redevelopment of the old Spofford Juvenile Detention Facility. That project already includes housing, industrial space, community areas, and public space. Now 20,000 square feet would be set aside for a taxpayer-funded grocery store.
Lehodey said the city’s idea of fairness misses the bigger picture. “Yeah, the prices might be a little bit cheaper, but that comes at the cost of other businesses running sustainable operations,” he said. He also pointed out that the city is handing over public land without collecting the revenue it could bring in. “That land does have value,” he said. “By giving it out for free, the taxpayer again is losing money, and we’re losing revenue that could have been spent on other things.”
A second city-backed grocery store is planned for East Harlem’s La Marqueta market, with roughly $30 million in taxpayer spending attached to it. That neighborhood already has plenty of food options, including around 45 grocery stores within walking distance, along with major chains like Whole Foods and Lidl and many local bodegas.
Store managers in the area say they are already thinking about the impact. Sarah Kang, manager of a CTown Supermarkets location about a half hour walk from the proposed site, said, “Of course it will affect this store,” she said. “If they find a cheaper supermarket, I don’t think they’ll be willing to make that trip. It’s going to affect small grocery stores. Definitely.”
Joel Martinez, who manages a supermarket on Frederick Douglass Boulevard, said the pressure may hit smaller shops hardest. “I hope it doesn’t impact us,” he said. “The store will be a little far from us, so that’s good. But it will affect smaller businesses that are closer.”
Bodegas and corner markets are part of what gives New York neighborhoods their character. They serve customers fast, adapt to local needs, and survive on thin margins. Critics of Mamdani’s plan say a city-run store could undercut that ecosystem and leave taxpayers stuck covering the losses.
The mayor’s office says the effort is meant to address food insecurity. But opponents argue the city already has better ways to do that, including nutrition programs, business support, and partnerships with private grocers. For now, the fight over city-owned groceries is shaping up to be one of the city’s most controversial new battles.