A group of immigrant-owned grocers is preparing to sue New York City over Mayor Zohran Mamdani's initiative to establish government-owned supermarkets, with legal action potentially commencing this week. The Multicultural Business Coalition, an organization comprising 50 chambers of commerce for ethnically diverse businesses, has made a final attempt to resolve the dispute outside of court.
In a letter sent to City Hall on Wednesday, coalition president Kenneth Roldan expressed openness to amicable solutions for providing affordable, nutritious food to working-class residents. However, Roldan indicated that multiple versions of lawsuits have been prepared, with the coalition undecided on whether to file in state, federal, or both courts. The federal case is expected to focus on antitrust and predatory pricing claims, while the state case may address tortious interference and discriminatory practices by the administration.
The coalition, which represents Asian, African, Caribbean, Hispanic, Middle Eastern, and Jewish-owned businesses, states that City Hall has been unresponsive to their requests for meetings since May 2026. The city has issued a request for proposals seeking operators for five government-owned supermarkets, a project allocated $70 million, with bids due on October 16.
According to the coalition's letter, the city's request for proposals suggests a "lack of understanding of the supermarket industry" and raises questions about the plan's effectiveness. They argue that the city-owned grocers could disrupt existing operations, reduce profit margins, and potentially force some businesses to close.
The city's proposal involves existing grocery store operators running the five new locations, which will be exempt from rent and property taxes. These stores are intended to offer a 30% discount on essential items, with City Hall projecting an average saving of $90 per month, or approximately 15% off shoppers' bills. Approximately $40 million has been allocated for the first two sites, planned for Harlem and the Bronx. The locations for the remaining three stores have not yet been confirmed.
Legal counsel for the coalition, Mark Jaffe, president of the Greater New York Chamber of Commerce, stated that if the city does not engage in dialogue, they will proceed with legal action to stop the initiative. He raised concerns about the impact on established businesses, citing a Food Bazaar Supermarket located across the street from one of the proposed sites.
Frank Garcia, chairman of the Multicultural Business Coalition, also voiced concerns about potential retaliation from city officials against businesses that participate in the lawsuit.