Rep. Mike Rulli, R-Ohio, a former grocery store owner, has voiced strong opposition to New York City Mayor Zohran Mamdani's plan to establish government-run grocery stores. Rulli, whose family owns the Rulli Brothers grocery chain, expressed concern that the initiative would jeopardize hundreds of small businesses across the city.
"That supermarket will just bleed red the entire time it's open, from the first time you turn the key until it closes," Rulli told Fox News Digital. "And I would bet the farm there's no way these grocery stores last more than five years — they might not even last a year."
Mamdani, a democratic socialist, unveiled the plan during his campaign, with the city committing $70 million to build five stores, one in each borough, with a target opening date of 2030. The stores aim to set prices 30% below typical retail for a core set of goods.
Rulli argued that the grocery industry operates on thin profit margins, with net profits often around one to one-and-a-half percent. He believes that government-run stores, especially those offering significant discounts, are likely to incur substantial losses.
"When you think about the grocery industry, [it] runs on about 27% gross. That's before you pay your bills. Once you pay your bills, you're about one-and-a-quarter, one-and-half-percent net," he explained. "This is the biggest mistake the mayor has made."
Rulli's family business experience, he stated, has provided him with insight into the challenges faced by small business owners. He suggested that the city's plan could disproportionately affect immigrant-owned businesses, which constitute a significant portion of New York City's small business landscape.
The plan has also drawn criticism from business groups. The Multicultural Business Coalition has reportedly threatened legal action against Mamdani over the initiative.
