NYC Mayor's $70M Request for City-Run Grocery Stores Seen as Wasted Effort

Many experts believe the concept has little chance of success due to the low-margin nature of the grocery business.

Published on Mar. 5, 2026

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New York City Mayor Zohran Mamdani has requested $70 million to launch a program of five city-run grocery stores, one in each borough, as a way to address food deserts. However, an overwhelming majority of respondents to a LinkedIn poll believe the plan is doomed to fail, citing the inherent challenges of operating grocery stores with the city's involvement.

Why it matters

The proposal highlights the ongoing challenges of addressing food insecurity and access to affordable, nutritious food in underserved urban areas. While the mayor's intentions may be noble, many experts argue that direct government intervention in the grocery business is unlikely to be an effective solution.

The details

Mamdani has not provided details on how the city would operate the proposed grocery stores, other than saying they would offer subsidies to private businesses and the stores would not pay property taxes or rent. However, industry experts argue that the grocery business has extremely low profit margins, and city-run operations would likely struggle to compete with established private firms.

  • On March 1, 2026, New York City Mayor Zohran Mamdani announced the $70 million request for the city-run grocery store program.
  • The LinkedIn poll asking about the viability of the plan was conducted in the days following the mayor's announcement.

The players

Zohran Mamdani

The current mayor of New York City who has proposed a $70 million program to establish five city-run grocery stores, one in each borough.

John C.

A LinkedIn user who commented that the grocery business has "crazy low margins" and that the city would be "better off taking the money and giving it to people who live in a food desert for free delivery from outside the area."

Craig B.

A LinkedIn user who commented that the city-run grocery stores "won't work" and that the money would be better used by "a private grocery firm" rather than the "economic illiteracy" of the city government.

David F.

A LinkedIn user who wrote that the "economic illiteracy coming out of the country's financial capital is astounding" in reference to the mayor's proposal.

Larry E.

A LinkedIn user who referenced the city of Chicago's experience with city-run grocery stores, saying "they'll burn through that $70 million and come back asking for a lot more."

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What they’re saying

“The grocery business has crazy low margins when you know what you're doing. I can't imagine the losses when you don't.”

— John C. (LinkedIn)

“Oh, he'll probably get the money … but it won't work. Like others have said, it's a low-margin business that requires very large-scale operations to survive. Or charge 20% more for everything. And if food deserts are the problem … help deter retail theft … you may find stores will gladly stay in the area, along with lower property tax rates.”

— Craig B. (LinkedIn)

“Just imagine how much better that money would be used by a private grocery firm. The economic illiteracy coming out of the country's financial capital is astounding.”

— David F. (LinkedIn)

“Ask Chicago about city-run grocery stores. They'll burn through that $70 million and come back asking for a lot more.”

— Larry E. (LinkedIn)

What’s next

The mayor's office has indicated they will submit the $70 million budget request to the city council for consideration in the coming weeks.

The takeaway

While the mayor's goal of improving food access in underserved communities is admirable, the consensus among industry experts is that direct government involvement in the grocery business is unlikely to be an effective or sustainable solution. The funds may be better utilized through alternative approaches, such as incentives for private grocers or direct assistance to residents in food deserts.