Groups representing grocers and supermarkets are planning to fight back against Mayor Zohran Mamdani’s plan to open city-owned grocery stores that could offer below market price food.
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Groups representing grocers and supermarkets are planning to fight back against Mayor Mamdani’s plan to open city-owned grocery stores that could offer below market price food
The chairman of the Multicultural Business Coalition sat in the City Council chambers during a hearing with the interim leader of the city’s Economic Development Corporation, Jeanny Pak, to hear Council Speaker Julie Menin scrutinize the plan
The administration is planning to have a store open in all five boroughs by the end of its first term in 2029. The first two locations identified one in Hunts Point, the Bronx, affordable housing development, and one in East Harlem at La Marqueta
“The Koreans, the Latinos, the Jewish community, our Arab counterparts are against this plan of the mayor,” Frank Garcia, the chairman of the Multicultural Business Coalition, outside of City Hall, said.
Garcia said he’s considering a lawsuit to stop it.
“They’re using our tax dollars against our members, and we cannot compete,” he added.
Garcia sat in the City Council chambers during a hearing with the interim leader of the city’s Economic Development Corporation, Jeanny Pak, to hear Council Speaker Julie Menin scrutinize the plan.
Pak explained that the city would contract with a private company that already operates grocery stores. The city would fully subsidize the build-out of the city-owned store and let the operator run it rent-free, property tax-free.
“We’re going to ensure that subsidy goes directly to the food affordability of those core baskets,” she said.
It’s still not yet known what will be included in the basket of discounted food.
“We’re still working that out, but the focus is on fresh, healthy foods and everyday groceries. Think bread, milk, meat, chicken, eggs, produce,” Pak continued.
The administration is planning to have a store open in all five boroughs by the end of its first term in 2029. The first two locations identified one in Hunts Point, the Bronx, affordable housing development, and one in East Harlem at La Marqueta.
Pak described the site selection process.
“We also wanted to make sure that from the city’s measure that it did not have enough grocery stores per capita,” she said.
Menin offered her ideas for dealing with the drivers of higher food cost, like insurance.
“We’re focused on creating an insurance accountability office to lower insurance costs for small businesses, grocery stores and others,” she said.
Mark Jaffe, the president of the Greater New York Chamber of Commerce, said he’s fielded concerns he heard from a member who operates two supermarkets nearby La Marqueta.
“He’s distressed that he might have to go out of business — all within walking distance of La Marqueta,” he said.