Criticism is mounting against New York City Mayor Zohran Mamdani’s proposal for government-operated grocery stores. A former grocer argues that the plan could negatively impact numerous small businesses.
“That supermarket will just bleed red the entire time it’s open, from the first time you turn the key until it closes,” stated Rep. Mike Rulli, R-Ohio, to Fox News Digital. “And I would bet the farm there’s no way these grocery stores last more than five years – they might not even last a year.”
Rulli, who has a family history in the grocery business through the Rulli Brothers chain in Ohio, expressed concerns about the repercussions on small businesses in New York City. He fears that competition from city-run stores would drive many, especially immigrant-owned stores, out of business.
“You will put hundreds of these small businesses out of business. And a lot of these businesses are owned by immigrants,” he emphasized.
Mamdani, who is a Democratic socialist, unveiled a plan to establish government-funded grocery stores. The city has committed $70 million to open one store in each of the five boroughs by 2030.
During a news conference, Mamdani mentioned that these stores would set prices 30% below typical retail prices once a month for a core set of goods. While progressives welcomed the plan, business groups like the Multicultural Business Coalition have expressed opposition.
Rulli highlighted the thin profit margins in the grocery industry, suggesting that city-run grocers would operate at a financial loss. “When you think about the grocery industry, [it] runs on about 27% gross. That’s before you pay your bills. Once you pay your bills, you’re about one-and-a-quarter, one-and-half-percent net,” he explained.
This, he argued, would place a financial burden on taxpayers for as long as the stores remain open.
“This is the biggest mistake the mayor has made,” Rulli added.
Elizabeth Elkind, a politics reporter for Fox News Digital, leads coverage of the House of Representatives. She has previously contributed to Daily Mail and CBS News.