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By Newzyy Staff — 1h ago
A coalition representing hundreds of small, immigrant- and minority-owned grocery stores in New York City filed two lawsuits against Mayor Zohran Mamdani on Monday, challenging his plan to open five city-run grocery stores by 2029.
The Multicultural Business Coalition argues that the municipally owned stores, which would offer discounted prices on essential goods, would put smaller neighborhood grocers at a competitive disadvantage. The lawsuits claim the city did not conduct adequate analysis of the potential impact on local businesses and that the city lacks the legal authority to operate the stores. The group’s attorney, Mark Jaffe, stated that subsidized city stores would not face typical business costs like rent or wholesale prices, making it impossible for small grocers to compete.
Mamdani, who campaigned on affordability issues, has defended the initiative as a response to rising food costs. He noted that grocery prices have increased by about 30% in recent years and emphasized that the city’s plan would place one store in each of the five boroughs. The first location is set to open in the Bronx in 2027. Mamdani also pointed to existing subsidized grocery programs in Manhattan and Brooklyn, asserting they had not harmed nearby small businesses.
The Economic Development Corporation (EDC), which is managing the project, has not yet commented on the lawsuits. However, an EDC spokesperson previously told the New York Times that the city was evaluating the initiative’s potential effects.