New York City, New York — A coalition representing small supermarkets and bodegas sued Mayor Zohran Mamdani’s administration Monday, arguing that his planned network of city-owned grocery stores would create unfair competition for immigrant- and minority-owned businesses.
The Multicultural Business Coalition filed two lawsuits in state court seeking to halt the program. One claims the subsidized stores would violate equal-protection rights by allowing city-backed competitors to sell food roughly 30% below prevailing prices. The other argues the administration failed to adequately study the economic and land-use effects on existing grocers.
Mamdani’s plan allocates about $70 million for five stores, one in each borough. The city would own or subsidize the locations and cover major overhead expenses while private operators handle daily operations.
Grocers argue they cannot compete with stores receiving taxpayer support while operating on thin margins. Mamdani says the initiative is designed to address grocery prices that have risen about 30% in recent years and notes that five stores would represent a small fraction of New York’s more than 1,000 grocery stores.
The administration also points to existing city-subsidized markets in Manhattan and Brooklyn as evidence that public support can coexist with private neighborhood retailers.
The lawsuits could delay the program before its first location opens next year.
Sources
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