A coalition of New York City's neighborhood grocery stores and bodegas has filed a lawsuit against Mayor Zohran Mamdani's administration, challenging a $70 million plan to establish city-backed supermarkets. The Multicultural Business Coalition (MBC), which represents dozens of ethnic and multicultural chambers with members including immigrant-owned bodegas and grocery stores, argues the initiative violates New York civil rights laws and the state Constitution's equal protection clause.
Filed in New York County Supreme Court, the lawsuit seeks to block the grocery store plan, which proponents say could offer significant savings to struggling families. The proposed stores would sell produce, meat, dairy, and pantry staples at approximately 30 percent below typical market prices. The city aims to open one store in each borough, providing public real estate, construction funding, and government support, while private operators would manage day-to-day operations.
According to the lawsuit, the city's plan creates an unfair competitor by giving these government-supported stores advantages that independent bodegas lack. The MBC contends that these municipal supermarkets, selling basic products at substantially lower prices, could divert customers from existing small businesses that operate on narrow profit margins, potentially forcing many to close.
During his campaign, Mayor Mamdani expressed support for New York City's delis and bodegas, even filming a skit inside one and promising to reduce fines and red tape for small businesses. The MBC's president, Kenneth Roldan, has urged City Hall to pursue negotiations, stating a willingness to find amicable solutions. Mark Jaffe, the coalition's legal counsel, echoed this sentiment, emphasizing the desire to avoid litigation.
City officials maintain the program targets areas with the greatest need, citing data that a significant percentage of households in neighborhoods like Hunts Point in the Bronx and East Harlem struggle with food insecurity and rely on public assistance. To ensure discounts benefit residents, the city is considering a membership system. The city also notes that the new stores will not sell items that are major revenue generators for bodegas, such as alcohol, cigarettes, lottery tickets, or hot food.
The first store is slated to open in Hunts Point by the end of 2027, with five locations projected to be operational by the end of 2029. The initiative is expected to save shoppers an estimated $90 per month. However, the plan follows cautionary examples from other cities. In Kansas City, Missouri, a government-backed grocery store closed after facing financial struggles. Baldwin, Florida, eventually shuttered its town-owned store after it became a financial burden. San Francisco, Boston, and Chicago have also explored or are exploring similar public-backed grocery initiatives, with varying degrees of progress and challenges.