Additional Coverage:
- Mamdani’s public grocery stores may have devastating effects on city’s food supply (foxbusiness.com)
NYC Mayoral Candidate’s Grocery Store Plan Sparks Debate
Zohran Mamdani, the surprise winner of the Democratic mayoral primary, has put affordability front and center in his campaign. One of his most talked-about proposals?
A network of city-owned grocery stores. Mamdani argues this will combat rising food costs and address “food deserts” in underserved communities.
He envisions using wholesale purchasing, local farm partnerships, and centralized distribution to keep prices low, along with exemptions from rent and property taxes. The projected cost: $60 million, potentially funded by redirecting existing grocery store tax breaks.
However, the plan has drawn sharp criticism from economists and business leaders. Some argue that government-run stores lack the efficiency and competitive drive of the private sector, leading to higher costs and potential shortages.
“Government-run entities have no market discipline,” says Ryan Bourne of the Cato Institute. “That leads to bloated costs, empty shelves, and zero accountability.”
E.J. Antoni of the Heritage Foundation echoes this concern, questioning how city-run stores could offer lower prices and remain profitable.
He also worries that such a system could undercut private grocers, potentially exacerbating food shortages.
Billionaire supermarket magnate John Catsimatidis, owner of Gristedes and D’Agostino stores, warned he might close or sell his Manhattan locations if Mamdani’s plan goes through. This sentiment is shared by some Wall Street figures, including Bill Ackman, who has criticized Mamdani’s economic agenda and threatened to back an alternative candidate. Real estate executive Jeff Gural expressed a preference for incumbent Mayor Eric Adams over Mamdani.
Despite the backlash, Mamdani points to constituents in his district, which includes the Queensbridge Houses, who struggle to afford groceries. He believes the city-run stores will offer a guaranteed source of affordable food.
Similar initiatives have been explored in other cities, with Chicago and Atlanta considering or implementing public food market options. James Galbraith, an economics professor at the University of Texas at Austin, notes that cooperative grocery stores already exist in many communities and provide competition that benefits consumers.
While Mamdani emphasizes the need for affordable groceries, critics suggest alternative solutions like expanding food stamp programs. Judge Glock of the Manhattan Institute argues that grocery stores operate on thin margins, making it unlikely the city could generate significant savings. The debate over Mamdani’s grocery store plan highlights the complex challenges of balancing affordability, market competition, and the role of government in addressing food insecurity.