A group of grocery store owners sued Mayor Mamdani and his administration Monday over a plan to open five city-funded grocery stores across the city offering heavily discounted prices to consumers, arguing the plan is discriminatory.
The Multicultural Business Coalition argued in two lawsuits that the program, a key piece of Mamdani’s affordability agenda, would hurt Latino and Asian supermarkets. The city should have done a study on the potential impacts on nearby stores, the suits claim.
“Many minority members of the MBC cannot compete with the municipal grocery stores, and therefore, will be put out of business resulting in further exclusion of minority groups that are historically excluded by the City of New York from economic opportunities,” the lawsuit, filed in Manhattan state court, read.
AP Photo/Ryan Murphy
Mayor Zohran Mamdani speaks at an announcement event of a city-wide, discounted grocery plan for city-run municipal grocery stores, in the Brooklyn borough of New York, Monday, July 27, 2026. (AP Photo/Ryan Murphy)
The lawsuits argue that the mayor’s plan violates state civil rights laws and the equal protection clause of the State Constitution, and that the city lacks the authority to open the stores. The suit acknowledges that “the overwhelming consensus, regardless of class or party affiliation, is that affordable food is an excellent idea.”
The group, which says it represents around 65 organizations in and around New York City, was formed in May.
Mayor Mamdani defended the program at a press conference in Queens on Monday, arguing that the city-run stores would not negatively impact nearby bodegas or supermarkets.
“I continue to be fully confident in both the legality and the importance of our initiative to deliver five city-run grocery stores, one in each borough, to the people of our city,” Mamdani said.
The first store is scheduled to open next year in Hunts Point in the Bronx, with another store at La Marqueta in East Harlem slated to open by 2029. The sites in Queens, Brooklyn and Staten Island have not yet been identified.
The city has earmarked $70 million to build the stores, and will cover rent and property taxes for the stores to ensure they can offer a 30% discount on essential goods like meat and produce.
