Mayor Zohran Mamdani has announced a plan to provide 30% discounts on a rotating selection of essential goods at forthcoming city-owned grocery stores. The initiative, intended to lower food costs for residents, is expected to save shoppers an average of $90 per month or $1,000 annually.
The "core basket of goods" will include items such as fresh produce, meat, seafood, milk, cheese, and bread, with the discounts applied "below typical retail prices." Mamdani stated the program would have "no exceptions, no gimmicks."
The project, which also includes a plan to build five new grocery stores, has an early estimated construction cost of $70 million. However, the city has not yet specified the financial impact of subsidizing the discounts. An annual "Affordability Payment" from the chosen operator is expected to cover the losses incurred from selling items below retail cost.
A request for proposals has been issued to private grocery chains to manage the stores, with bids due on October 16. An operator is not expected to be selected until spring 2027. Approximately $40 million has been allocated for the first two store locations, while sites for the remaining three are not yet confirmed.
The first store is slated to open in the Hunts Point area of the Bronx in 2027, followed by a location in East Harlem's La Marqueta in 2029. The stores will not sell hot food, alcohol, cigarettes, or lottery tickets.
To prevent bulk purchases for resale, a free membership card program will be implemented. This system will track sales and restrict excessive bulk purchases, according to RFP documents. City Hall and the Economic Development Corporation have not yet released further details on the operational costs of these subsidies.