Multicultural Business Coalition moves to sue Mamdani over gov-run groceries, alleges unfair competition

A business group led by immigrants in New York City is moving to bring a lawsuit against socialist New York City Zohran Mamdani over his plan to have taxpayer-funded grocery stores in the Big Apple, alleging that the plan will create unfair competition against privately-owned businesses without the luxury of having public funds at their fingertips.

The Multicultural Business Coalition’s (MBC) board voted to file a lawsuit in the coming weeks to block the initiative from Mamdani, per the New York Post. This comes as Mamdani announced new details to slash the prices of basic items—such as bread, milk, and cheese—by 30 percent. Claiming that without a profit motive—profit margins for grocery stores are usually around 2 percent—a 30% savings will be possible.

“The mayor doesn’t seem to want to sit down with us,” MBC chairman Frank Garcia said, adding that Mamdani “won’t be able to bully these lawyers we are going to bring in.”

MBC plans to raise $1 million to fight against the taxpayer-funded grocery stores, and said that the lawsuit should be a "non-partisan initiative.” The group is planning on sending a letter in the coming days to put Mamdani on notice about the lawsuit.

Funds will also be used by the group to fuel the lawsuit as well as a campaign to raise awareness about how mom-and-pop shops struggle to obtain capital and fend off shoplifters in the Big Apple.

The MBC and other business groups have said that Mamdani plans on pursuing the city-run grocery stores whether or not it hurts small businesses owners. One area in particular they will point to is where there are five bodegas located within a few blocks of where Mamdani plans to place a store in the area of Harlem known as La Marqueta.

The businesses owners in Harlem fear that Mamdani's socialist project will put them out of business. “Having items that sell for 30% less than our prices, means nobody will go to our stores,” Radhames Rodriguez, the president of United Bodegas of America, said.

Mamdani, however, claims that the grocery stores backed by the tax-base of New York City will not hurt bodegas and small business. “We are not looking to compete with bodegas or grocery stores when it comes to their ability to survive,” Mamdani said in a press conference earlier this week.