Mamdani on Failed Gov’t Stores: Others Are ‘Considering’ It, ‘We Have to Prove’ It’ll Work

Published September 7, 2025

When New York Assemblyman and mayoral candidate Zohran Mamdani took to CNN to defend his proposal for city-run grocery stores, he acknowledged the elephant in the room: others have tried, and failed. Yet Mamdani insists that New York can prove the model works, and he is willing to stake both public dollars and political capital on the idea.

The Proposal

Mamdani’s vision is straightforward but ambitious: establish five city-run grocery stores, one in each of New York City’s boroughs, as a pilot project to test whether municipal ownership can deliver cheaper, more reliable access to food. The total cost is pegged at around $60 million, which Mamdani argues is actually less than half of what the city currently spends on subsidies to lure corporate supermarket chains into underserved areas.

The stores would not operate as charities. Instead, they would sell food at reduced prices, leveraging the city’s purchasing power to negotiate wholesale rates and pass the savings directly to consumers. By cutting out layers of corporate overhead and focusing on affordability rather than profit, Mamdani hopes to lower grocery bills for struggling families, particularly in “food desert” neighborhoods where options are limited to overpriced corner stores or fast food outlets.

Mamdani frames the plan as a public option for food, akin to how public libraries coexist with bookstores or how public schools function alongside private institutions. The idea isn’t to replace the private sector but to ensure that basic access to affordable groceries is guaranteed, regardless of profit potential.

To ease concerns about runaway costs, Mamdani stresses that this would be a pilot program, not a permanent city-wide overhaul. The limited rollout—five stores, one per borough—would serve as a testing ground to measure customer demand, financial viability, and operational efficiency. If successful, it could be expanded; if not, the city would walk away having spent a fraction of its budget compared to ongoing corporate subsidies.

Democratic mayoral candidate Zohran Mamdani has proposed opening city-owned grocery stores.

The Pitch

For Zohran Mamdani, the argument for city-run grocery stores begins with a simple question: what happens when the free market doesn’t deliver a basic necessity?

Supporters of the plan point to the reality facing many New Yorkers. In low-income neighborhoods, especially those labeled “food deserts,” full-service supermarkets are scarce. Residents are often forced to rely on bodegas with limited selections or on fast food, leaving healthier options out of reach. Rising inflation has only made the situation worse, as families stretch their budgets to cover essentials.

Mamdani’s pitch is that the city can step in to provide what private companies won’t. By using its scale and bargaining power, New York could buy groceries at wholesale rates, sidestepping corporate markups, and then pass those savings directly to residents. Unlike food pantries or charity programs, these stores wouldn’t be free handouts—they’d operate like regular groceries but with a public mission: affordability over profit.

Advocates liken the idea to military commissaries, which consistently sell goods below market prices, or to other municipal services where government competes alongside the private sector. Public schools exist next to private ones. Libraries coexist with bookstores. Even the city’s transit system offers a service the market never fully provided. Why should access to fresh food be treated differently?

There’s also a broader political framing. For Mamdani, this isn’t just about groceries—it’s about proving that government can still deliver for ordinary people. In his mayoral pitch, city-run stores represent both a practical solution to food insecurity and a symbolic rejection of what he sees as decades of reliance on corporate subsidies that have done little to solve the problem.

To his supporters, the stores are a safety net and a statement: that in a city as wealthy as New York, no one should go hungry because the market decided their neighborhood wasn’t profitable enough.

A local TV station also reported a rancid smell in the Kansas City store.

The Pushback

If Mamdani’s proposal has stirred enthusiasm among progressives, it has also unleashed a wave of skepticism from economists, business owners, and political opponents who see city-run grocery stores as a recipe for waste and disappointment.

The most common critique is financial. Grocery retail operates on razor-thin margins—often between 1% and 3%. Even large supermarket chains with decades of experience struggle to stay profitable, especially in high-cost environments like New York City. Critics argue that a government-run operation, weighed down by civil service pay scales, union protections, and bureaucratic procurement rules, will almost inevitably run at a loss. Taxpayers, they warn, will be left footing the bill.

There’s also the issue of crime and theft. Retailers across the city have already been battered by a surge in shoplifting, with some chains closing locations entirely. Skeptics question how city-run stores would be able to absorb such losses, or whether the burden would simply be shifted onto the public budget. A municipal store plagued by empty shelves, security problems, and long lines could quickly become a symbol of failure rather than a solution.

Historical precedent doesn’t inspire confidence either. A widely reported example from Kansas City, Missouri saw a city-owned grocery store close its doors after years of poor management, lack of inventory, and dwindling customers. Videos of empty aisles and spoiled produce went viral, turning the experiment into a cautionary tale. Detractors warn that New York is inviting the same outcome on a far larger—and more expensive—scale.

Small-business owners, especially bodega operators, see the plan as an existential threat. Many argue they are already hanging by a thread due to competition from chain supermarkets, delivery apps, and inflation. The introduction of subsidized, city-run competition could drive them out of business altogether, stripping neighborhoods of the very local character that politicians often promise to protect.

Finally, opponents frame the plan as an ideological overreach. They argue that the city’s job is to create conditions where private businesses can thrive, not to become a competitor itself. For these critics, Mamdani’s proposal is less about solving food insecurity and more about pushing a broader political agenda—a “socialist experiment” that New Yorkers will pay for long after the campaign is over.

The Stakes

Mamdani’s proposal for city-run grocery stores is more than just a policy idea—it’s a political gamble with implications that reach far beyond the checkout line.

At the most immediate level, the plan has become a centerpiece of his mayoral campaign. By framing himself as the candidate willing to try bold solutions where others have hesitated, Mamdani is appealing to progressive voters hungry for change. Success would allow him to showcase not only a solution to food insecurity but also proof that his brand of governance—rooted in the belief that public control can outperform private profit—can deliver real results.

But the stakes stretch beyond New York City. If Mamdani’s pilot program works, it could inspire other municipalities across the country to consider similar public options for groceries, potentially reshaping how Americans think about food access. In an era where inflation and food insecurity dominate household concerns, a successful model could ripple out as a new national template.

On the flip side, failure would be costly—not just financially but politically. A poorly run municipal grocery store would become an easy target for opponents, reinforcing long-held skepticism about government inefficiency. Empty shelves, budget overruns, or shuttered storefronts would hand Mamdani’s critics the perfect evidence that his ideas are out of touch with reality. In the high-stakes environment of New York politics, one failed store could overshadow all other achievements.

There are also economic and social consequences at stake. If city-run stores thrive, they could force private grocers to lower prices, increasing competition and consumer choice. If they flop, they could weaken already vulnerable small businesses, like bodegas, and drain resources that might have gone toward more targeted approaches such as tax credits, food subsidies, or zoning reform to encourage private investment.

Ultimately, the stakes are as much about trust as they are about groceries. Can New York City prove that government can manage what is traditionally left to the private sector? Or will this become another expensive experiment that leaves residents more cynical than before?

For Mamdani, the answer could define not just his campaign—but his entire political legacy.

Sun Fresh Market has recieved millions of dollars in taxpayer funds since opening in 2018, according to the report.

The report noted a lack of fresh produce available in the city-owned grocery store.

What the Video Covers

This video outlines Mamdani’s proposal to establish city-run grocery stores—one in each of New York City’s five boroughs. The goal is to offer wholesale-priced groceries in neighborhoods lacking affordable food options, often referred to as “food deserts.” It portrays the initiative as a public option for food, emphasizing affordability and accessibility.

Key Points and Contextual Insights

1. Scope and Purpose

• It’s a pilot program, proposing five municipally run stores, one per borough, with a budget of approximately $60 million.

• The stores aim to reduce food insecurity by selling groceries at wholesale prices—lower than typical retail margins.

2. Precedent and Practical Examples

• Models like military commissaries—which consistently offer prices 18–25% lower than private supermarkets—are used as analogues.

• Similar efforts in cities like Madison, Atlanta, and smaller towns exist, though their success has varied.

3. Challenges and Opposition

• Critics warn of high operating costs, competition from large supermarket chains, and unclear operational models.

• A city-owned store in Kansas City, Missouri, which opened in 2018, recently closed amid reports of poor stocking, neglect, and lingering hygiene issues—raising concerns about replicability.

4. Supportive Perspectives

• Experts emphasize that if well-managed, the pilot could improve access to healthy food and create local jobs.

• Vox describes Mamdani’s agenda—including this grocery plan—as practical and historically tested, not unrealistic.

• The Guardian notes strong public backing amid rising grocery prices, with many neighborhoods under-served by private chains.

 Implications

🔹 Economic Implications

• Budget Trade-offs: $60M could be diverted from other programs (housing, transit, policing). Questions arise if this is the best use of funds.

• Market Disruption: Could undercut small businesses (bodegas, corner shops) who already operate on razor-thin margins.

• Public Sector Efficiency: Government historically struggles with inventory, procurement delays, and cost overruns—raising risks of inefficiency.

🔹 Social Implications

• Food Security: Potentially improves access to affordable food in underserved neighborhoods.

• Equity Argument: Treats groceries like a public necessity (similar to schools or transit), especially for low-income families.

• Public Trust: Success could boost confidence in government-led solutions; failure could reinforce skepticism about “socialist experiments.”

🔹 Political Implications

• Mayoral Platform: Positions Mamdani as a bold reformer in the NYC mayoral race, appealing to progressive voters.

• National Model: If successful, could inspire other cities to consider municipal stores. If it fails, could become a talking point against progressive policies.

• Public Backlash: Critics could frame this as government overreach, worsening debates about the role of the state in private markets.

🔹 Practical Implications

• Crime & Shoplifting: Retail theft in NYC is already a major issue; city-run stores could face heavy losses unless security is addressed.

• Sustainability: Pilot stores may require ongoing subsidies; if so, taxpayers shoulder the burden.

• Replication: If it works, scaling up city-run stores could transform how urban food deserts are handled across the U.S.

 Overall Takeaway:

Zohran Mamdani’s push for city-run grocery stores is a bold experiment that touches on deeper questions about the role of government in everyday life. On paper, the plan promises relief for families struggling with rising food costs and limited access to fresh groceries. But history offers cautionary lessons: government-run stores have often struggled with inefficiency, mismanagement, and financial losses, sometimes collapsing under the very challenges private grocers already face.

The proposal’s fate will likely hinge less on ideology and more on execution—how well the city can manage costs, address theft, and compete with established retailers. If it succeeds, New York could set a precedent for other cities grappling with food deserts. If it fails, it risks becoming another costly example of government overreach.

In the end, Mamdani is asking New Yorkers to take a leap of faith that this time, public control of a private market can deliver results where others have stumbled. Whether voters and taxpayers are willing to gamble on that promise remains the real test.

SOURCES: BREITBART – Mamdani on Failed Gov’t Stores: Others Are ‘Considering’ It, ‘We Have to Prove’ It’ll Work

THE NEW YORK POST – Zohran Mamdani’s NYC grocery stores scheme draws fresh scrutiny as video of empty, city-owned Missouri market goes viral