Zohran Mamdani is pushing for New York City-run grocery stores. Here's what he envisions.
Zohran Mamdani championed the idea of New York City-run grocery stores throughout his successful campaign for mayor. He has said he views it as an opportunity to address affordability and to give the public a choice.
But in a city where capitalism reigns supreme, Mamdani's proposal has faced significant opposition. The democratic socialist's road to having it adopted will hinge on a variety of factors, including City Council and state support.
Mamdani has said his plan "is part of a vision of a public option for produce, an understanding that for far too many New Yorkers, groceries are out of reach, and the importance in city government of reasonable policy experimentation."
Mamdani's city-run grocery store plan
The initiative, which Mamdani says will cost $60 million, would put at least one city-run store in each borough, focusing on food deserts, or areas with limited access to full-service supermarkets, and is not about making a profit. It counts on the city covering rent and property taxes to pass savings to consumers.
"The job of city government is not to tinker around the edges while 1 in 4 children across our city go hungry," Mamdani said.
As outlined on his campaign website, Mamdani says the city would buy and sell goods at wholesale prices, centralize warehousing and distribution, and collaborate with local neighborhoods on product selection and sourcing.
As for how he would pay for the program, New York City already subsidizes private grocery store owners to the tune of millions of dollars per year. Mamdani has said he would redirect that money to stores the city controls.
Mamdani has also stated that further funding of the plan, along with his other democratic socialist policies, would be generated by increasing the corporate tax rate to 11.5% and instituting a flat 2% tax rate for individuals earning $1 million or more.
Potential roadblocks
Mamdani will almost certainly need to use the power and influence of his office to help the city-run grocery stores plan gain traction, but that likely won't be enough to get it across the finish line. Political expert J.C. Polanco, a professor at the University of Mount Saint Vincent in the Bronx, says convincing members of the City Council to go along with it could prove to be difficult.
"The problem will be here is that you have supermarkets, delis and bodegas that are part of the fabric of the community. In order for a city councilmember to vote for this to happen, they would have to look at their deli, bodega and supermarket in their districts and say I know this store will compete with you and it doesn't need to worry about profits, but I'm going to vote for it anyway," Polanco said.
Polanco said the odds of having City Council support for city-run grocery stores is "very little, considering that these city councilmembers have dozens of bodegas in their districts."
Some owners of private grocery stores have spoken out against Mamdani's proposal. Billionaire supermarket magnate John Catsimatidis, for example, has said it is incompatible with New York City's market economy.
"New York City is a capitalist city -- look what happened in Kansas City?" Catsimatidis said, referring to the recent closure of that city's government-owned grocery store. "These types of grocery stores just don't work."
Mamdani has turned some opponents into allies
Mamdani was asked back in August if he's concerned about the hefty criticism his plan has generated. He said he is in no way trying to trample on private supermarket, delicatessen and bodega owners.
"I am interested in working with each and every New Yorker, and I've actually spoken with a number of grocery store owners and made clear to them that I both recognize and I appreciate the work that they have done. The fact is that they are a critical part of our communities," Mamdani replied.
It's important to note that some members of the opposition have changed their tune about Mamdani, if not his grocery stores proposal. Just a few months before the election, the United Bodegas of America blasted his plan, calling the idea foolish and saying it will be harmful to private businesses.
However, less than a week before Mamdani won the election, the president of the group stood behind the then-Democratic nominee, saying he wants to make the city affordable for everyone.
"We are proud to stand by Zohran Mamdani, a candidate who understands the struggle of everyday New Yorkers," UBA President Radahmes Rodriguez said.
In addition, Gov. Kathy Hochul, who has often spoken out about free enterprise, did end up endorsing Mamdani for mayor, which opens the door to her perhaps being amenable to the idea of city-run grocery stores down the road.