Dagen McDowell explains how New York City’s government-run grocery store proposal faces a potential lawsuit from local private grocers over unfair competition, calling the taxpayer-funded plans ‘the spread of socialism.’
A coalition representing immigrant-owned grocers is targeting New York City in a lawsuit over democratic socialist Mayor Zohran Mamdani’s plans to open multiple government-owned grocery stores in the Big Apple, a government intervention that is expected to cut into the profits of regular markets.
The lawsuit was expected to be filed Monday at 8 a.m. ET, following efforts to resolve the solution out of court.
“Although we have not heard from you since May 2026, we are open to resolving this matter amicably with more sensible solutions to feed working class people with nutritious essential food items at affordable prices,” the Multicultural Business Coalition’s president, Kenneth Roldan, declared in a letter to City Hall, according to a New York Post report last week.
NYC TAXPAYERS COULD PAY TWICE UNDER MAMDANI’S CITY-OWNED GROCERY STORE PLAN
New York City Mayor Zohran Mamdani listens as Gov. Kathy Hochul speaks during a press conference on Immigration and Customs Enforcement (ICE) actions on Aug. 12, 2026, in New York City. (Michael M. Santiago/Getty Images / Getty Images)
“We are asking the mayor to avoid litigation to sit down with us,” legal counsel for the coalition, Mark Jaffe, the president of the Greater New York Chamber of Commerce, told the outlet. “But we have to try to stop this if they won’t listen to us.”
The first of five planned government-linked grocery stores is expected to open next year, the mayor’s office announced earlier this year.
MAMDANI’S LUXURY-HOME TAX GETS NEW LIFE AS APPEALS COURT LIFTS ROADBLOCK IN HOMEOWNER FIGHT
New York GOP gubernatorial candidate Bruce Blakeman discusses New York City Mayor Zohran Mamdani’s plan to open city-run grocery stores and blasts the state’s Democratic leadership on ‘Kudlow.’
“Under the model, the City will own the land and cover overhead costs like rent and construction. A private operator, selected through a request for proposals, will manage daily operations and be contractually required to pass savings directly to customers on a core basket of everyday staples,” an April news release stated.
Mamdani has claimed that prices for a core basket of grocery items will be priced 30% lower than normal retail prices at the government-affiliated stores.
BILL ACKMAN SOUNDS ALARM ON MAMDANI’S ECONOMIC AGENDA: ‘SOCIALISM IS A DISASTER’
Zohran Mamdani, mayor of New York, holds up bananas labeled with a 30% off sticker during an announcement of municipal grocery stores at a Campaign for Hunger community food distribution center in the Brooklyn borough of New York, on Monday, July 27, (Adam Gray/Bloomberg via Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“This core set of goods will include all fresh produce, meat and seafood along with 20 other essential items like cheese, milk and bread. Here’s how it will work: Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices,” he said last month.
FOX Business’ Madison Alsworth contributed to this report.
