Officials tasked with developing Mayor Zohran Mamdani’s signature policy of city-owned grocery stores said they’re close to putting out bids for private companies to run them, with a store in each borough.
The winning operator will be selected by spring 2027.
What You Need To Know
NYC Groceries pilot will select a private operator for stores by spring 2027
The pilot proposes five city-owned grocery stores, one in each borough
Mayor Zohran Mamdani appointed new leadership to the New York City Economic Development Corporation, which will develop his signature grocery proposal
“It may not have all the items, but it’s going to be like a typical grocery store,” said Jeanny Pak, the interim CEO of the New York City Economic Development Corporation. “We want them to be like an extension of their business.”
Under NYC Groceries, tax dollars cover the construction of new stores on city-owned land. A private operator runs the store without paying rent or property tax. The savings would subsidize the staples, giving shoppers a discount.
The EDC updated its board members with a presentation. Some questioned the competition with nearby grocers.
“What effort has been made to help other stores in general?” asked Adam Friedman, an urban planner who sits on the EDC board.
After the meeting, Friedman told NY1 that it’s a concern.
“That’s the issue that I think a number of us were getting at — how is its impact on competition? All these businesses are trying to do right,” Friedman said.
He said he backs NYC Groceries and wants city officials to learn about the factors that determine grocery prices, so they can lower the cost of basic goods in all stores.
“What we’re going to learn here is how can we extend these benefits citywide?” Friedman said. “It may not be through taxes. It may not be through ownership of land and rent, but what are the other factors that impact on the cost of food in New York City?”
The number of discounted items in the so-called basket of goods could be roughly 40% of the total offerings at NYC grocery stores, according to one figure discussed at the meeting.
The size of the discount has yet to be determined, though prices would be “fixed,” according to Pak.
“We did a lot of analysis of what people buy in terms of their everyday goods,” she said.
Meat, seafood, produce, bread and dairy will be priorities, while unhealthy foods will be excluded, Pak said.
“Even if there are a lot of people who buy soda, we’re not discounting soda,” she added.
EDC officials maintained that NYC Groceries will complement nearby grocers and even suggested grocers could supply the city-owned stores.
An industry leader thought differently.
“It doesn’t complement at all. It hurts,” Anthony Peña, president of the National Supermarket Association, said. “If there was $1,000 to be spent in the marketplace, the more groceries you add to that marketplace, the smaller the pie.”