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New York City Mayor Zohran Mamdani unveiled new details Tuesday about his administration’s plan to launch city-owned grocery stores, saying the locations will sell essential food items at prices 30% below typical retail rates in an effort to lower grocery bills for working families.
Under the pricing model, shoppers would receive a 30% discount on a core basket of staple goods while other products would be sold at prevailing market prices.
City officials estimate the discount could save households about $90 per month, or roughly $1,000 annually.
“No New Yorker should have to worry about being able to afford to feed their family,” Mamdani said while announcing the plan in Brooklyn.
The announcement marks a key step in delivering one of Mamdani’s signature campaign promises to establish publicly backed grocery stores aimed at improving food affordability across the city.
According to the mayor, discounted items will include everyday necessities such as fresh produce, pasta, rice, beans, bread, yogurt, meat and seafood.
“Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices,” Mamdani said. “No exceptions, no gimmicks. The savings will last for the entire month.”
Unlike traditional grocery promotions, the discounted prices would remain in place throughout the month rather than changing weekly, the administration said.
The city also released a 44-page request for proposals seeking private operators to manage the stores while New York City provides the property and pays for construction or renovation costs.
The administration plans to establish five neighborhood grocery stores across the five boroughs. One location has already been identified at La Marqueta in East Harlem, while another is planned for Hunts Point in the Bronx. Officials are still searching for sites in Brooklyn, Queens and Staten Island.
The first city-owned grocery store is expected to open in the Bronx next year, while the remaining locations are scheduled to open by 2029.
Mamdani has proposed allocating $70 million in the city’s capital budget to support development of all five stores.
The stores will be publicly owned but privately operated, with contractors overseeing day-to-day operations.
The proposal has drawn criticism from some bodega owners and small grocery operators, who argue taxpayer-funded stores could unfairly compete with neighborhood businesses.
Mamdani rejected those concerns, saying the city stores are designed to complement rather than replace existing retailers.
He noted the stores will not sell products that generate significant revenue for many bodegas, including cigarettes, alcohol or lottery tickets.
“We know that a lot of what drives revenue for these bodegas, grocery stores, those are things that make it possible for them to continue to operate,” Mamdani said. “Those are not things we have any interest in competing for.”
The stores also will not sell hot prepared foods, another key source of income for many neighborhood bodegas.
City officials say the initiative is intended to improve access to affordable groceries while limiting direct competition with existing small businesses.
The administration is now accepting proposals from organizations interested in operating the stores as planning moves forward.
