Mayor Zohran Mamdani’s plan to open five city-owned grocery stores is facing legal challenges from a coalition of business owners who argue the initiative could hurt independent grocers, particularly immigrant- and minority-owned businesses, according to Gothamist.
The Multicultural Business Coalition filed two lawsuits Monday in New York State Supreme Court, seeking to halt the city’s municipal grocery program. The city plans to open one store in each borough, with the first expected next year in Hunts Point in the Bronx.
A Manhattan location is planned for La Marqueta in East Harlem in 2029, while sites in Brooklyn, Queens and Staten Island remain under consideration.
“Food retailing- from bodegas to supermarkets- is New York City’s great mosaic. Mayor Mamdani needs to withdraw his disastrous plan and work with us to find different ways to bolster and sustain what so many NYC immigrants have created,” said Jairo Guzman, president of the NY State Mexican Chamber of Commerce.
The stores will be owned by the city but operated by private grocers and are intended to sell staple items at prices about 30% below average retail prices. The Associated Press has previously reported on Mamdani’s plan to offer 30% discounts on meat, produce and other pantry staples at the proposed stores.
The lawsuits argue that subsidized city-owned stores could draw customers away from independent grocers and place additional pressure on businesses already dealing with high rents, payroll expenses, security costs and rising food prices. The coalition also alleges that the city did not conduct sufficient analysis before selecting its planned locations.
The plan could become relevant to Brooklyn’s grocery industry because the borough remains among those without a selected municipal store site. Brooklyn’s independent grocers, including immigrant-owned businesses, could face questions about how a future location might affect neighborhood competition.
The initiative stands out for combining city ownership with private grocery operations in an effort to address food costs. The planned stores also will not sell cigarettes, prepared foods or lottery tickets, which are important revenue sources for many bodegas.
The lawsuits will determine whether the city can proceed with the program as proposed. Meanwhile, the city is expected to continue considering locations for the remaining three boroughs, including Brooklyn.
