Carlos Collado, a Dominican immigrant and owner of five independent grocery stores in the Bronx and Manhattan, expressed concerns that New York’s new mayor, Zohran Mamdani, will make it harder for small grocers and bodegas to succeed due to his plan to open five city-owned grocery stores.

Mayor Mamdani announced this week that the new stores will offer produce, meat, and seafood at prices 30% lower than typical retail rates. The initiative is intended to address soaring food prices that disproportionately affect vulnerable New Yorkers.

Food costs have risen sharply in recent years. According to the US Bureau of Labor Statistics, the average price of ground chuck beef in June was nearly $7 per pound, an 83% increase since June 2016. The Federal Reserve Bank of St Louis reports that the consumer price index for food in the New York-New Jersey area increased by 33% from 2015 to 2024.

Supporters of the plan argue it will bring much-needed food options to neighborhoods lacking grocery stores. Maria Torres, president and COO of The Point, a community development organization in Hunts Point, described the predominantly Hispanic neighborhood as "basically a food desert," suggesting the new store, La Peninsula, would not threaten existing grocers.

However, opposition comes from groups like the National Association of Latino State Chambers. Its chairman, Frank Garcia, warned, "It’s going to really devastate the economic growth of the small minority ethnic business," leading efforts against the city-owned stores.

The plan also draws cautionary lessons from other cities. In Kansas City, a local government investment of nearly $18 million in a grocery store and shopping center ended with closure in 2025 due to increased crime and slow sales, as reported by a local NPR affiliate.

The debate highlights the challenges of balancing affordable food access with the sustainability of small businesses in New York City.

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