On Wednesday, a group of New York City bodega owners and the Multicultural Business Coalition assembled outside the American Deli Mini Market Corp in Harlem to voice strong opposition to Mayor Zohran Mamdani’s proposal to open five city‑run grocery stores. The coalition, which represents 50 chambers of commerce serving multicultural businesses, filed two separate lawsuits in state court on Monday challenging the plan.
Legal challenges allege civil‑rights violations
The first suit is a seven‑page class‑action filed on behalf of “hundreds” of store owners. It argues that using city money to subsidize the new supermarkets could constitute a civil‑rights violation because the funding is applied discriminatorily, giving the city‑run stores an unfair advantage over privately owned bodegas.
“When you use government money discriminatorily, it could be a civil‑rights violation,” said Mark Jaffe, president and CEO of the Greater New York Chamber of Commerce. He added, “Shame on the Mamdani administration for not working with small businesses, but trying to hurt them and being heartless in their statements.”
Economic concerns for local merchants
The second lawsuit seeks a permanent injunction against the municipal grocery stores until the city conducts the necessary studies and analysis. Plaintiffs point to past cases where large retailers such as Walmart were blocked from entering the market after similar challenges.
Under the mayor’s plan, the five stores would sell a core basket of items at prices roughly 30% below average retail prices. The city would own the land and cover overhead costs, while a private operator selected through a request‑for‑proposals process would manage daily operations and pass the savings directly to customers.
Business leaders argue that this model creates an uneven playing field. “Small business owners who have to pay their Con Edison bill, their real estate taxes, their fines and full price for food cannot compete,” Jaffe said. He warned that tax dollars used to subsidize the city stores could ultimately be spent on groceries at full price, only to be sold at a discount elsewhere, leaving local merchants unable to survive.
Mayor’s response and task forces
Mayor Mamdani’s office responded by highlighting the creation of the NYC Groceries Task Force, which will bring together city agencies, industry experts, and small‑business owners to guide implementation. The administration also launched an OPEN Task Force aimed at cutting red tape and reducing fines for small businesses.
Elvis, the owner of the American Deli Mini Market Corp, told reporters through a translator, “If [Mamdani opens this store] in front of my business, I’m going to go out of business. I pay a lot of taxes and this is not fair.”
Looking ahead
Mayor Mamdani maintains confidence in the legality and importance of the initiative, noting that the city plans to open one grocery store in each borough by the end of his first term. He emphasized that the five city‑run stores would not significantly impact the more than 1,000 existing supermarkets and over 10,000 bodegas that serve New Yorkers.
Critics, however, remain skeptical. Jaffe warned that “history shows us that communist supermarkets have empty shelves” and urged the mayor to consider alternative ways to feed struggling residents without jeopardizing the livelihoods of minority entrepreneurs.
Original reporting: Fox News (HLL/CB) — read the source article.
