City officials are attempting to assuage concerns from local business owners regarding the administration's plan to establish government-owned supermarkets, but recent interactions have amplified anxieties within the community. Representatives from New York City's approximately 13,000 bodegas met with Julie Su, deputy mayor for economic justice, last week for a roundtable discussion, which sources close to the situation described as "intrusive."
During the meeting, attended by city agencies and trade groups, Su reportedly circulated a questionnaire asking about the most frequently sold items and areas of highest profit margin in bodega stores. According to sources, bodega representatives declined to answer these questions, citing a lack of trust and the city's unwillingness to address their own concerns.
Business owners are reportedly frustrated that the city is seeking their input only after announcing plans in April to build a public grocery store in East Harlem's La Marqueta, a project estimated to cost $30 million. This development, along with the broader vision for at least one public supermarket in each of the city's five boroughs—the first slated to open in Hunts Point, the Bronx, next year—is perceived as a threat to the livelihoods of nearby existing stores.
The city maintains that its public supermarket initiative, which aims to subsidize prices on essential items, will not directly compete with existing businesses. "We met with bodega owners so they could help us plan and ensure that we take into account their challenges and their role as a part of the food ecosystem," Su stated. "One of the questions we wanted to understand is whether there are key products bodegas sell and rely on that we should not sell. That’s how serious we are about not undercutting them."
However, grocers and bodega owners struggle to reconcile these claims with the potential impact of subsidized competition. Many operate on slim profit margins of 2% to 3% and have faced rising costs for fuel, tariffs, and property taxes. One potential concession being considered by the city is the exclusion of deli counters, which offer sandwiches, sliced meats, cheeses, and prepared salads, according to Cathy Nonas, executive director of the nonprofit Meals for Good. "That’s a plan on the table," Nonas said, adding that the city "wants to make sure that those who have served the community are still thriving after the public markets open."
The mayor's office has not finalized decisions on the specific types of food products offered, stating that offerings "will vary by store and have not been finalized at this point."
At a City Council hearing in June, interim NYC Economic Development Corporation chief executive Jeanny Pak assured council members that the agency was reaching out to the industry and owners in affected areas, and would continue to do so. "Some of the stuff bodega owners have we won’t have. We are hoping that we can direct traffic to the bodega owners. We will find ways to support them," Pak said.
Industry executives have expressed skepticism about the administration's promises, viewing the questions posed to business owners as a "clumsy, one-sided fishing expedition." A food policy expert, speaking anonymously, called the inquiries about profits and margins "none of their business."
A former co-owner of the Morton Williams grocery store chain, Avi Kaner, told The Post that grocers need clarity on how the city intends to avoid displacing existing businesses. "I don’t think the questions themselves are unreasonable," Kaner said. "I think they are premature. The city should first provide transparency."
Further fueling skepticism, bodega owners at the recent meeting were reportedly asked by the city not to share details with the NYC Groceries Interagency Taskforce. Nonas noted that skepticism is understandable, as "bodegas have never had a city [administration] that has been particularly concerned with their needs and problems," often serving as the only market in underserved areas until gentrification raises rents.