New York City Mayor Zoran Mamdani is looking to launch five grocery stores owned by the city, but a prominent supermarket owner, John Catsimatidis, has voiced some strong concerns. He stated, “This store won’t feed the hungry, but the warehouse next door will be shelved.” Catsimatidis, the CEO of Gristedes, emphasized that the initiative could negatively impact existing grocery stores and retailers in those areas, posing the question of who will ultimately suffer from this plan.
In July, Mamdani announced intentions for one store in each borough, aiming to open the first in Hunts Point, Bronx, by late 2027. His goal is to have all five stores functioning by 2030, with the project costing a staggering $70 million.
As part of this food initiative, city-run stores will offer 30% discounts on essential grocery items like meat, seafood, and fresh produce, hoping to address the city’s affordability issues. Mayor Mamdani remarked on the grocery shopping experience: “New Yorkers go to the grocery store every week hoping prices won’t go up again. Going to the grocery store shouldn’t be scary for New Yorkers.”
The city is seeking applicants from private businesses to manage these new stores, while also planning to cover property taxes and rent for each location—a choice that Catsimatidis believes could give them an unfair advantage over local businesses.
Catsimatidis pointed out, “The people who run these five stores are not going to pay property taxes. They can reduce the cost of their products by 20% because of that.” He highlighted the already challenging environment for New York business owners, who face tough competition from online vendors and minimal profit margins within the grocery sector.
A local parliament member with a grocery background mentioned that Mamdani’s state-run stores “might not last a year.” He also commented on how competition from external vendors is increasingly threatening local businesses in the five boroughs.
Catsimatidis continued, saying, “If I want my product delivered, vendors from New Jersey charge extra to bring it into the city.” He listed multiple recent cost increases, such as congestion pricing and rising energy expenses, putting additional pressure on local grocery owners. “In the big picture, five stores in five boroughs looks good on paper, but it doesn’t genuinely help those who are hungry,” he commented, mentioning the toll that congestion pricing has had on Manhattan stores.
He argued that while he appreciates the need for affordable grocery options in low-income areas, there should be a careful balance to avoid hurting existing businesses. “No one wants to see folks compete against their own neighbors. It just looks like a move from socialist policies,” he reflected, comparing it to other countries where such practices are common.
Meanwhile, Nevin Cohen from New York’s Urban Food Policy Institute highlighted the necessity of such initiatives to combat food insecurity in the city, noting that around 1.4 million residents struggle with access to food. However, Catsimatidis remains skeptical and insists that if the city wants to truly lower grocery prices, it should consider more comprehensive solutions that do not undercut local businesses.
