Mamdani’s city-owned grocery stores to offer 30 percent discount on basics
Photo courtesy of Kara McCurdy | Mayoral Photography Office on Flickr
The city’s publicly owned grocery stores will offer a 30 percent discount on basics, Mayor Zohran Mamdani announced on Monday. One of his key campaign promises to tackle affordability, the mayor plans to establish five city-run food stores, one in every borough, as a way to bring down food costs, the first model of its kind in the United States. A collection of essentials, including all fresh produce, meat, and seafood, will be priced 30 percent below typical retail prices. Other basics like cheese, milk, and bread will be 20 percent off, with other products priced at market rate.
“A trip to the grocery store shouldn’t spell dread for New Yorkers,” Mamdani said in a statement. “That’s why we are guaranteeing a 30% discount on the most common and most critical groceries for families across the five boroughs — including eggs, milk, chicken and fresh fruits and vegetables. In a city that’s defined by unpredictability, you deserve stability — no matter what aisle you’re in.”
According to the mayor, the five NYC Groceries stores will set prices for the core set of goods once a month. The savings will last for the full month, meaning “no fluctuations or sticker shock” at check-out, Mamdani said during a press conference on Monday. A sticker with a QR code will be found on all essential items so shoppers can scan on their phones and see how much it costs.
The discounted prices could add up to savings of $90 per month, or $1,000 per year, according to the city.
The city plans to open the first municipal grocery store next year at a new development in the South Bronx. As 6sqft previously noted, the 20,000-square-foot store will be located at The Peninsula, a redevelopment of the former Spofford Juvenile Detention Center in Hunts Point into a mixed-use complex with 740 affordable apartments.
Another store will open at La Marqueta in East Harlem, the site of one of the city’s original public markets that Mayor Fiorello LaGuardia opened in 1936. All five stores are expected to open by the end of the mayor’s first term in 2029.
In May, the city opened an online portal inviting private property owners to recommend sites for the remaining three stores in Brooklyn, Queens, and Staten Island. The budget deal reached with the City Council last month included $70 million in funding for the stores.
On Monday, the city issued a request for proposals (RFP) seeking grocers or firms to operate NYC Groceries.
The city, through the Economic Development Corporation (EDC), will provide the “grocery-ready” sites, cover rent and property taxes, fund the initial buildout, and create a single public brand for NYC Groceries.
The city will establish requirements for affordability, job quality, and transparency. Operators will be responsible for all daily operations.
Some small business owners worry the city program will undermine their own stores. Frank Garcia of the Multicultural Business Coalition told the New York Times the city’s discounts threaten to close small businesses. Garcia, who said he was prepared to sue to stop the stores, told the newspaper: “How are you going to compete with that?”
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