Grocery boss warns Mamdani's city-run stores pit government against 'its own citizens'

As New York City Mayor Zohran Mamdani moves ahead with a plan to open five city-run grocery stores, one of the Big Apples biggest supermarket owners has a blunt warning: the stores won't feed the hungry, but they will shelve the bodegas next door.

"The fact is the people [Mamdani] is going to hurt are the current bodegas or the current supermarkets in those neighborhoods," John Catsimatidis, CEO of the New York City grocery chain Gristedes, told Fox News Digital. "So it becomes a problem of for whom do the bells toll?"

In July, Mamdani announced the stores would be located in each of the citys five boroughs, with the first location set to open in Hunts Point in the Bronx in late 2027. The mayor added he hopes to have all five stores operational before his term ends in 2030, and has set the projects capital budget at an eye-watering $70 million.

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The government-run shops will offer a 30% discount on a "core basket of everyday groceries," including meat, seafood and fresh produce, in an attempt to combat the affordability crisis plaguing the city, according to Mamdanis administration.

"Every week, New Yorkers walk into a grocery store hoping the prices havent gone up again. A trip to the grocery store shouldnt spell dread for New Yorkers," Mamdani said.

Fox News Digital reached out to Mamdanis administration for comment.

The city is currently accepting applications from private operators interested in managing the logistical challenges of running the stores. Mamdanis administration has also vowed to cover the property taxes and rental costs for each location — a decision that Catsimatidis feels puts local business owners at a disadvantage.

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"The people that are going to run those five stores are not going to pay any real estate taxes. Not going to pay any rent," Catsimatidis said. "If I dont pay any rent or real estate taxes, I can bring down the cost of a product 20% across the board."

In recent years, business owners throughout the five boroughs have been faced with expanding hurdles taking aim at their bottom line.

Catsimatidis added that local owners are already dealing with increased competition from outside vendors who rely on online commerce to reach consumers in the Big Apple, with the average grocery store operating at just a 1% to 3% profit margin.

"The businesses that are doing business outside New York City are just shipping [products] in by mail, they can afford to be cheaper," Catsimatidis said. "And you know what happens? They put the stores and the businesses inside New York City out of business."

According to the grocery tycoon, new and increasing costs — including congestion pricing and the rising cost of electricity — are also cut