Archive · 25 Aug 2026
Mamdani Sued Over Plan For Five Government-Run Grocery Stores
New York City Mayor Zohran Mamdani wants to open five grocery stores run by the city.
A business group representing small stores and bodegas is suing to stop the plan.
The group says private stores could not compete with stores receiving government support.
It says city-run stores may not have to pay normal rent or operating costs.
Mayor Mamdani says the plan is legal.
He also says similar markets in Brooklyn and Manhattan have not hurt nearby bodegas.
The lawsuit was filed in New York County Supreme Court.
Another affordability measure, involving pied-à-terre taxes, has also faced a legal challenge and was blocked by a Staten Island judge.
The Multicultural Business Coalition filed a class-action lawsuit against New York City and Mayor Zohran Mamdani.
The group represents small supermarkets, grocery stores and bodegas, including minority-owned businesses.
The lawsuit argues city-run stores could undercut private retailers because the city would cover costs and offer below-market advantages.
Mamdani said he is confident the grocery-store plan is legal and noted that similar markets have not harmed nearby bodegas.
The lawsuit is the third recent legal challenge to an affordability measure introduced by Mamdani’s administration.
- Who
- The Multicultural Business Coalition sued New York City and Mayor Zohran Mamdani; the coalition represents small supermarkets, grocery stores and bodegas.
- What
- A class-action lawsuit seeks to stop the planned opening of five government-run grocery stores.
- When
- The lawsuit was filed on Monday; the articles do not provide a specific date.
- Where
- The case was filed in New York County Supreme Court in New York City.
- Why
- The coalition argues that city support could let the stores offer prices that minority-owned and other small retailers cannot match.
Business Coalition’s Objections
Mamdani Administration’s Defense
Ability to compete
Business Coalition’s Objections
Small store owners say they cannot compete with a supermarket that does not have to pay rent, electricity costs or full product prices.
Mamdani Administration’s Defense
Mamdani argues that five city-run stores would serve a city of 8.5 million people that already has more than 1,000 grocery stores.
Effect on nearby bodegas
Business Coalition’s Objections
The coalition says government-supported stores could harm small and minority-owned retailers by offering discounts they cannot match.
Mamdani Administration’s Defense
Mamdani said two similar markets in Brooklyn and Manhattan have not produced adverse effects on nearby bodegas.
Legality of the plan
Business Coalition’s Objections
The lawsuit alleges that the plan violates the rights of small store owners and minority-community business operators.
Mamdani Administration’s Defense
Mamdani said he is confident that his administration’s grocery-store plan is legal.
- Plaintiff
- The Multicultural Business Coalition, a New York City nonprofit organization.
- Defendants
- New York City and Mayor Zohran Mamdani.
- Lawsuit type
- Class-action lawsuit.
- Planned stores
- Five city-run grocery stores.
- Business concern
- The coalition says city-run stores could benefit from covered operating costs and other advantages.
- Mayor’s response
- Mamdani said he is confident the plan is legal.
- Related legal challenge
- A Staten Island judge blocked the administration’s pied-à-terre taxes after homeowners sued.