Aug. 24 (UPI) — A group of grocers filed two lawsuits Monday over New York City Mayor Zohran Mamdani’s plan to open five city-run grocery stores, saying it would harm neighborhood supermarkets.
The Multicultural Business Coalition, an organization that says it represents owners of smaller stores, said in the filings that the city would violate business owners’ civil rights if the new stores open and that officials did not study how the planned stores would affect existing businesses.
Kenneth Roldan, the president of the coalition, said the plan would have a “devastating” effect on small grocery stores. He called it “a direct assault on minority business,” The New York Times reported.
The plan for city-owned grocery stores, which would sell some items at a 30% discount, was part of Mamdani’s platform as he ran for mayor. It calls for five stores, one in each borough of New York City, to open by 2029.
Mamdani said at a news conference Monday that the new stores are needed to address the high cost of groceries and that they would not offer significant competition in the city.
“I’m confident both in the legality of this, that it will stand up in court, and the importance of delivering it,” Mamdani said.
The new stores would reevaluate prices once a month and set the cost for food items at 30% below retailers, The Hill reported. The city would own the land and cover the rent and construction costs. A private operator, selected through a request for proposals, would manage daily operations.
“We are talking about a reflection of a cost-of-living crisis that has seen grocery prices increase by about 30 percent over the last few years, and we’re also talking about delivering five city-run grocery stores in a city of 8.5 million people that has more than 1,000 grocery stores,” Mamdani said.
The first store is expected to open in 2027 in the Hunts Point neighborhood in the Bronx. An East Harlem store is expected to open by 2029. The city has not yet selected sites in Queens, Brooklyn and Staten Island.
