A unique legal challenge aimed at halting Mayor Zohran Mamdani’s grocery-store initiative in New York City has been initiated by a coalition representing many immigrant-owned bodegas and grocers.
On Monday, the Multicultural Business Coalition filed two lawsuits in the New York State Supreme Court, arguing that Mamdani’s proposal to establish five city-run grocery stores would disadvantage small, minority-owned businesses.
‘Many minority members of the MBC cannot compete with the municipal grocery stores, and therefore, will be put out of business.’
This legal action follows weeks of attempts to address the concerns outside of court. It coincides with the city’s announcement that these grocery stores will offer products—including fresh produce, meat, seafood, and various essential items—at prices about 30% lower than market value.
The first lawsuit, a class-action civil rights complaint, claims that the program violates New York Civil Rights Laws and the Equal Protection Clause of the New York State Constitution. The coalition argues that the city has unfairly favored minority-owned grocers by subsidizing stores that can afford discounts that private businesses can’t, which undermines their right to equal protection.
The second lawsuit seeks to halt the operation of these stores until the city conducts thorough studies on their economic impact. The coalition asserts that there is “no existing evidence” suggesting that officials performed necessary analyses regarding how this competition would affect local businesses.
In its filing, the coalition maintains that “many minority members of the MBC cannot compete with the municipal grocery stores, and therefore, will be put out of business.”
They further described the city’s operation of these grocery stores as arbitrary, capricious, and exceeding its municipal authority.
Mark Jaffe, the group’s general counsel and president of the Greater New York Chamber of Commerce, emphasized that the city is effectively setting the stage for failure for small grocers, forcing them into competition with city-run stores. He pointed out, “You cannot expect hardworking small business owners to compete with a supermarket that isn’t going to pay rent, won’t have to pay an electric bill, and won’t have to buy their products at full price.”
When asked about the lawsuits during a press event in Queens, Mamdani expressed confidence in the initiative’s legality and its significance in addressing rising grocery prices, which have surged approximately 30% over recent years. He noted the importance of establishing these grocery stores in a city like New York, which has around 8.5 million residents and over a thousand grocery stores.
Mamdani pointed to existing public markets, such as Essex Street Market and Moore Street Market, arguing that their operation has not had a detrimental effect on nearby businesses. He mentioned that these markets have been around since the 1940s and were initiated under Mayor Fiorello La Guardia.
Initially founded this year, the MBC represents approximately 65 business organizations across diverse communities, including Hispanic, Asian, Caribbean, African, Middle Eastern, Jewish, and South Asian populations in the New York-New Jersey area.
To allay concerns regarding potential harm to local stores, Mamdani stated that the city-run stores would exclude the sale of cigarettes, alcohol, lottery tickets, or hot food, which typically represent significant profit margins for bodegas and convenience stores.
MBC Chairman Frank Garcia shared a personal account, noting, “My grandfather opened one of the first bodegas in the late 1960s when East Harlem was burning and the A&Ps and Waldbaums were leaving,” emphasizing his pride in continuing his grandfather’s legacy. He criticized the mayor’s actions, suggesting they tarnish that legacy.
As it stands, the coalition is the only named plaintiff in the lawsuits, but they intend to include individual grocery store owners as plaintiffs later this week.
The first of the city-owned grocery stores is set to open in the Hunts Point neighborhood of the Bronx by the end of 2027, with the remaining stores expected to be running by the conclusion of Mamdani’s four-year term, including one in East Harlem.
