The government led by Mamdani is trying hard to ease worries about the proposed city-owned supermarket, but recent discussions have raised even more concerns among local business owners, according to sources.
Bodega owners from New York City gathered at City Hall last week for a “roundtable” organized by Deputy Mayor for Economic Justice, Julie Hsu. They reported being met with “intrusive” inquiries about their businesses during the meeting, as per individuals familiar with the events.
Before last Monday’s meeting, which included city officials and representatives from approximately 13,000 bodegas, Su had asked the group a survey that included questions like, “What is the best-selling item in your store?” and “Where do you make the most profit?”
However, those representing the bodegas chose not to respond, officials noted.
“They asked us for sensitive information, yet didn’t reciprocate with answers, which is why mistrust has grown,” said a liquor store representative who wished to remain anonymous.
Business owners expressed frustration, particularly since city officials had previously announced plans for a public grocery store in East Harlem’s La Marqueta back in April. They feel that the recent requests for input are too little, too late. The grocery store is projected to cost about $30 million and could jeopardize the livelihoods of several nearby stores.
The city continues to argue that its move to establish at least one public supermarket in each borough (with the first planned to open next year in Hunts Point, the Bronx) will not directly compete with existing local stores.
Hsu explained in a statement, “We met with bodega owners to develop a plan that addresses their challenges and acknowledges their role in the food ecosystem.”
She added, “We wanted to know if there are key products that bodegas depend on and might not need to sell.” This, she emphasized, shows their seriousness about valuing those products.
Yet, grocery store and winery owners are skeptical about these claims.
Mamdani’s approach of subsidizing grocery stores with taxpayer funds so they can sell essential items at lower prices may threaten local stores, which operate on thin profit margins of 2-3%. Increasing costs—fuel, taxes, and customs—have already forced some to raise their prices.
In an effort to placate smaller stores, the city might consider not providing deli counters that serve sandwiches and other prepared foods, according to Kathy Nonas, a former senior food policy adviser.
“That option is being considered,” said Nonas, who also mentioned that the intention is to support community businesses once the public market opens.
The mayor’s office did not comment specifically on the idea of deli counters, stating that food offerings would vary by store and are not yet finalized.
During a City Council hearing in June, Interim CEO of the New York City Economic Development Corporation, Jenny Park, was questioned by City Council President Julie Menin on how businesses would be protected near public supermarkets.
“We have been reaching out to industry stakeholders and will continue to do so,” Park stated, adding that they hope to drive traffic to bodegas.
In May, city officials met with industry groups like the National Supermarket Association, which represents 450 independent stores. They also intend to connect with a newly formed group, the Multicultural Business Coalition, which aims to raise $1 million to oppose the mayor’s initiative.
At this point, many in the industry believe the government’s promises sound more like hollow campaign slogans. The probing questions—like “What attracts customers to your store?”—are causing alarm among business owners.
“It seems like a clumsy, one-sided fishing expedition,” said a food policy expert wishing to remain unnamed.
An individual who works with the city commented, “If the local government were to pry into my profits and margins, I would certainly be bothered.”
Abbi Keiner, a former co-owner of a grocery chain in Manhattan, remarked that grocers need clear information on how the city plans to prevent pushing existing businesses aside.
“I think the question is not unreasonable,” said Keiner. “But it seems premature. Transparency is essential.”
Bodega owners expressed their frustration during last week’s meeting, partially because they were advised not to disclose details to the New York City Food Agency Coordination Task Force.
“Bodegas didn’t have a city, so it makes sense that this group would be suspicious that the administration cares about them,” Nonas noted, stressing that their nonprofit supports local stores in impoverished areas.
“Often, these bodegas are the only markets available in low-income neighborhoods until gentrification makes rents soar.”
