City Hall's handling of a subsidized online grocery delivery program, "Groceries to Go," has drawn criticism, raising concerns about the feasibility of Mayor Zohran Mamdani's proposed city-owned supermarkets, known as Mamdani Marts.
The "Groceries to Go" program, which partners with the online platform Mercato, is seeing its city contract expand from $30 million to $75 million. However, the program has reportedly failed to pay local grocers on time, accumulating over $1 million in outstanding payments. This has led some participating stores, which operate on tight margins, to withdraw from the initiative.
It remains unclear whether Mercato is experiencing payment delays from the city or if the San Diego-based company is itself responsible for the financial discrepancies. Critics argue that if the city struggles to manage this comparatively simpler program, its capacity to launch and operate the more complex Mamdani Marts is questionable.
The proposed Mamdani Marts aim to provide city-owned supermarkets, a concept that has been in development for over a year without clear operational details. Critics point out that these proposed stores would only benefit residents in their immediate vicinity, unlike the citywide reach of "Groceries to Go."
Additionally, the city's Economic Development Corp. has operated a program called FRESH (Food Retail Expansion to Support Health) since 2009. FRESH offers incentives to private supermarkets to open in underserved neighborhoods, often referred to as "food deserts." This program has successfully established 30 stores across the city, including in areas where the Mamdani Marts are planned, leading to questions about redundancy.
Concerns have also been raised regarding the financial projections for the Mamdani Marts. The proposed budget of $70 million for five stores has been described as significantly lower than the cost of establishing even high-end supermarkets. State Comptroller candidate Joseph Hernandez has suggested the true cost could exceed $200 million, particularly when accounting for operating expenses and potential lost revenue for existing businesses.
The criticism suggests that the Mamdani Marts initiative may lack substantial planning, with its concept being described as driven more by public image than practical implementation. The timeline for the Marts' opening has been scrutinized, with some suggesting it's designed to avoid public judgment before a potential re-election year.