New York City’s plan to open five city-run grocery stores, one in each borough, may soon face a lawsuit, according to multiple reports.
The Multicultural Business Coalition, formed this year to fight New York City Mayor Zohran Mamdani’s grocery store plan, comprises 50 chambers of commerce representing Asian, African, Caribbean, Hispanic, Middle Eastern and Jewish-owned businesses in New York. The board voted to file a lawsuit against the plan.
The MBC wants to raise $1 million to fight the city-run endeavor and said it will send a letter to Mamdani’s office regarding the lawsuit.
The mayor refuses to meet with the coalition, according to the MBC.
A portion of the $1 million will also go toward raising awareness about how small grocery stores struggle to keep up with rising rent and taxes. Mamdani’s stores will not pay either.
The city has chosen sites for two of the five locations, including one in East Harlem’s La Marqueta, where five bodegas operate just a few blocks away. Groups opposed to the plan say that presents a problem.
Mamdani said the city-run stores, which will not offer hot bars, alcohol, cigarettes and lottery tickets, do not aim to compete against the bodegas or grocery stores.
The city announced Monday that the city-run grocery stores will price certain items, including produce, meat, bread and milk, at 30% below average market prices.
Other items that will be offered at a 30% discount include seafood, pasta, yogurt, butter, nuts, rice and beans, the New York Times reported. The stores will price the remainder of the products at market rates. In a news conference Monday, Mamdani said the discounts could save shoppers about $90 per month, or more than $1,000 per year.