New York City business leaders and bodega owners gathered in protest against Mayor Zohran Mamdani’s plan to establish municipal grocery stores. The initiative is stirring controversy among local business owners who fear that these stores will threaten their livelihood.

The Multicultural Business Coalition, consisting of 50 chambers representing multicultural businesses, filed two lawsuits in state court. These lawsuits challenge the plan to open five government-operated supermarkets offering subsidized groceries.

On a recent Wednesday, members of the coalition met with bodega owners near the future site of a city-run store at La Marqueta in Harlem. This gathering aimed to counter the rollout planned for late-2027.

Mark Jaffe, CEO of the Greater New York Chamber of Commerce, warned against the plan, labeling it as “a campaign promise doomed for disaster.”

One lawsuit is a class-action, alleging civil rights violations due to discriminatory use of government funds. Jaffe stressed the importance of collaborating with small businesses instead of harming them.

The second lawsuit seeks to prevent the operation of these grocery stores without necessary studies and analyses, similar to restrictions placed on large retailers like Walmart.

Under Mamdani’s proposal, the stores will offer staple items at prices 30% below average retail costs. The City will own the land, handling costs like rent and construction. A private operator, chosen through a request for proposals, will manage operations, ensuring savings are passed on to customers.

Jaffe argues this pricing model and expense subsidization give operators an unfair advantage. Small businesses can’t compete due to higher operational costs.

The proposal includes a NYC Groceries Task Force to assist with implementation and an OPEN Task Force to reduce unnecessary red tape for small businesses.

Elvis, owner of American Deli Mini Market Corp, voiced concerns about the impact on his business, stating he risks going out of business if a store opens nearby.

Mamdani defends the plan, expressing confidence in its legality and significance. The administration states the initiative will not significantly affect the numerous grocery and corner stores city-wide. However, Jaffe warns that these stores might harm minority entrepreneurs, dismissing the proposal as ineffective. He stressed the importance of exploring alternative ways to support those struggling with food insecurity.

Julia Bonavita, a media writer for Fox News Digital, reported this story.