Harlem Grocery Store Plan Raises Eyebrows
Mayor Zoran Mamdani’s proposal to launch a $30 million municipal grocery store in Harlem next year has drawn unexpected reactions from supermarket executives. They express concerns that this costly project could jeopardize nearby grocery stores that are already struggling.
During a speech on Sunday celebrating his 100th day in office, Mayor Mamdani revealed plans to establish the first of five taxpayer-funded grocery stores—a key element of his campaign aimed at reducing food costs for low-income residents.
Anthony Peña, president of the National Supermarket Association, reacted, saying, “When I saw the $30 million number, I almost recoiled. You could build a high-end gourmet restaurant in Manhattan for that amount.”
Avi Kerner, a former owner of the Morton Williams grocery chain, noted, “Thirty million dollars is a lot for a supermarket.” He and Peña pointed out that a typical 15,000-square-foot store could be built for less than $10 million.
However, the store’s proposed location raised further alarms among grocery executives. It is set to be constructed on a vacant lot at East 115th Street and Park Avenue, right next to La Marqueta, a long-standing city-owned market.
This site isn’t located in a “food desert,” as it’s surrounded by five grocery stores within two blocks, including Fine Fare and City Fresh, according to data from the National Supermarket Association. In fact, there are 15 stores within a five-block radius.
Pena criticized the plan, describing it as a “slap in the face” to struggling independent grocers, claiming that many owners are furious. He warned that lowering prices might be tough, especially with the anticipated 10% rise in property taxes.
The number of grocery stores in the city has reportedly decreased from nearly 500 to around 400 due to high operational costs and ongoing problems with shoplifting, he added.
The city has not yet announced the size of this new grocery store. The $30 million figure represents a capital investment to build it from the ground up, as stated by the mayor’s office.
Approximately 65,000 residents live within a 10-minute walk of La Marqueta, and around 40% of them rely on welfare, according to the mayor. He affirmed that they would proceed with the grocery store initiative.
Notably, store owners will not be responsible for paying rent or city property taxes.
Carlos Collado, a Bronx supermarket owner and vice president of the Bronx’s Bodega and Small Business Group, argued that it’s fundamentally unfair to use taxpayer money to subsidize government-run projects when it could support established local businesses instead.
He suggested that these funds would be better utilized on infrastructure improvements and direct support rather than competing with the private sector.
The administration previously estimated the total investment for building five city-owned grocery stores at around $70 million.
Mayor Mamdani defended the initiative, saying, “When corporations control every aspect of the food supply chain, prices rise and workers, along with customers, lose out. That’s why we are pursuing a public option, believing that cities need to step in when markets fail.”
He emphasized that access to food should not feel out of reach for anyone.
Corrado from BSBG countered, suggesting that the mayor should pivot toward reducing costs for businesses and incentivizing private grocers to move into underserved neighborhoods.
He critiqued the administration’s approach, arguing that while it claims these stores are a solution to inflation, it’s important to recognize that its regulations and costs contribute significantly to the inflation problem affecting shoppers.
“By using public subsidies, the city is creating an uneven playing field,” he remarked, highlighting that local grocers, who have served their communities for years, cannot compete against government agencies with fewer financial pressures.
