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A 30% discount on groceries at city-backed stores amounts to a taxpayer subsidy by another name, according to three economists who reviewed New York City Mayor Zohran Mamdani's proposal.
The city has committed $70 million in capital funding to open five municipal stores, one per borough, and projects shoppers will save about $1,000 a year.
The city's proposal Mamdani's administration says it can undercut private grocery prices by absorbing costs competitors carry: rent, property taxes and occupancy expenses.
Private operators would run each store's daily functions, including staffing and sourcing, while the city owns the real estate, sets pricing requirements and absorbs major overhead.
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