New York City Mayor Zohran Mamdani’s plan to open five city-run grocery stores has sparked concern among local business owners, who fear the stores will hurt existing bodegas and supermarkets in the area.

Concerns Over Unfair Competition

John Catsimatidis, CEO of the New York City grocery chain Gristedes, warned that the city-run stores will not feed the hungry, but will instead shelve the bodegas next door. Catsimatidis pointed out that the government-run shops will offer a 30% discount on a core basket of everyday groceries, which will make it difficult for private businesses to compete.

The city is currently accepting applications from private operators interested in managing the logistical challenges of running the stores. However, Catsimatidis feels that the city’s decision to cover the property taxes and rental costs for each location will put local business owners at a disadvantage.

Impact on Local Businesses

Catsimatidis added that local owners are already dealing with increased competition from outside vendors who rely on online commerce to reach consumers in the Big Apple, with the average grocery store operating at just a 1% to 3% profit margin. The new city-run stores will only exacerbate the problem, Catsimatidis warned.

Nevin Cohen, director of the CUNY Urban Food Policy Institute, emphasized New York City’s dire need for officials to combat food insecurity among its residents. However, Catsimatidis remains worried about the impact the shops will have on businesses in the immediate area, pointing to Mamdani’s democratic socialist platform.

Original reporting: Fox News (HLL/CB) — read the source article.