Mamdani's grocery plan could bankrupt local bodegas, business leader warns

August 23, 2026 - 01:32

A coalition of local business owners is pushing back against New York City Mayor Zohran Mamdani's plan to open government-run grocery stores, warning that the initiative could drive neighborhood bodegas out of business. Frank Garcia, chairman of the Multicultural Business Coalition, spoke out this week about the lawsuit his group filed against the city, arguing that the $70 million proposal is a direct threat to immigrant-owned shops.

Garcia said the plan, which would use taxpayer money to operate public supermarkets, would undercut the small grocers that already serve many working-class neighborhoods. "These bodegas are not just stores," he said. "They are the backbone of the community, offering credit to regulars, delivering goods to the elderly, and employing local people. A government store cannot replace that."

The lawsuit claims the city did not properly assess the economic impact of the plan before moving forward. Garcia also questioned the cost, noting that $70 million could be better spent on improving existing supply chains or helping small stores upgrade their refrigeration and shelving.

Supporters of the mayor's proposal argue that public grocery options would bring fresh food to areas currently underserved by private retailers. But Garcia dismissed that argument, saying the real issue is not a lack of stores but rising rents and wholesale costs that squeeze small operators. He called on the city to hold public hearings and work with local merchants before making any final decisions.

The legal challenge is still in its early stages, and no court date has been set. Meanwhile, bodega owners across the city are watching closely, worried that a win for the mayor could mean the end of their livelihoods.