Mamdani promises grocery prices 30% below retail—and critics have one big question

Gotham’s government-run grocery scheme appears set to starve out competition as the mayor touted double-digit savings — using the taxpayers’ own money.

Since taking office, reality found New York City Mayor Zohran Mamdani (D) reneging on campaign promises like the arrest of Israeli Prime Minister Benjamin Netanyahu and bus fare redistribution of wealth. Those setbacks haven’t deterred him from pursuing his squalid socialist utopia as Hizzoner announced plans for locked-in prices 30% below the norm, leaving critics certain of a future food desert.

During a Monday press conference in Brooklyn with a mock-up of plenty behind him, Mamdani explained that the five planned government-run grocery stores across the boroughs would set prices on key goods 30% below the going rate for the duration of the current month.

“Every week, New Yorkers walk into a grocery store hoping the prices haven’t gone up again. A trip to the grocery store shouldn’t spell dread for New Yorkers,” said the mayor. “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.”

Reiterating his point, a press release stated, “The basket will include all fresh produce, meat and seafood, along with roughly 20 additional categories of pantry staples, dairy and refrigerated goods.”

“The discount will apply to all regardless of income, with prices locked in and predictable rather than fluctuating week to week as is the case at private grocers,” it continued while claiming the plan would save participating New Yorkers about $1,000 per year despite the reality that estimates projected a cost of over $70 million of their tax dollars to subsidize the stores.

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As previously reported, with the first store expected to cost about $30 million on its own, business owners voiced concerns when city officials began inquiring with “intrusive” questions related to sales figures, profits, and margins.

While the city contends it has no intention of “undercutting” bodegas and other businesses, critics remain certain the guaranteed outcome of government-run grocery stores is closures and scarcity.

Projecting the chain of events set to follow subsidizing groceries at such a steep discount, prohibitive of competition in a business with a typically less than 3% profit margin, former U.S. Department of Energy nuclear scientist Matt Van Swol foresaw amid the avalanche of detraction, “Local grocery stores cannot compete … They go out of business .. City store becomes the only option … No competition … The ‘food desert’ they set out to fix is now worse … Demand is high, supply is low … Empty shelves become the norm … City responds the only way it can: purchase limits ‘2 per customer’ … Rationing occurs … A rush every day, hoarding, lines … To control the bleeding, the city quietly shrinks the basket or lets quality slide … Wilted produce, thinner cuts, fewer options … Budget balloons anyway, because the subsidy never shrinks, only grows.”

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Kevin Haggerty

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