New Yorkers are struggling to put food on the table, and in a push of his campaign promise Mayor Zohran Mamdani said he is moving ahead with plans to deliver affordable, city-run grocery stores. He recently announced a 30% discount on a “core basket” of everyday essentials.
“Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices,” said Mamdani at a press conference in Brooklyn on July 27. “No exceptions, no gimmicks. The savings will last for the entire month. That means no weekly fluctuations nor sticker shock at the checkout line.”
All five of Mamdani’s chosen grocery stores, under the N.Y.C. Groceries initiative, are slated to be open over the next four years, including La Marqueta in East Harlem. Mamdani has allocated $70 million in the capital budget for the groceries initiative. The city’s core basket of discounted goods will include eggs, milk, chicken, fresh fruits, vegetables, meat, and seafood, as well as “roughly 20 additional categories” of pantry staples, dairy, and refrigerated goods.
According to the Mayor’s True Cost of Living 2026 report, about 62% of New Yorkers do not have the resources to meet the cost of living in the city, which includes things like housing, food, healthcare, child care, and transportation. This disparity becomes even more extreme for Black and Hispanic New Yorkers.
The city said the discount will apply to all, regardless of income. The discount is projected by the city to save consumers at least 15% on their grocery bills.
“Since 2019, food prices have soared at grocery stores around the city by roughly 30% … Talk to shoppers around the city and you’ll often hear the same frustration. Wages have not kept up,” said Mamdani. “Making matters even worse, some corporations have built out technology that allows for something called surveillance pricing — collecting personal data to charge some people more than others for the same carton of eggs, for the same gallon of milk. All of this leaves too many New Yorkers feeling like groceries are out of reach, and that is frankly unacceptable, which is why the city government is stepping in to make people’s lives more affordable.”
Deputy Mayor for Economic Justice Julie Su acknowledged that while many of the factors that are driving up prices, specifically the ongoing Iran war and “erratic tariffs,” are beyond the city’s control, they remain determined to take action regarding food and jobs.
“While we don’t control all the reasons that groceries are unaffordable, we are going to be ambitious and imaginative about what we can do,” said Su. “As we’ve also said many times, affordability is about both sides of the equation — bringing prices down and bringing up what workers get and the number of good jobs in this city. Today, we’re making it absolutely clear that these grocery stores will provide quality jobs, with families sustaining benefits and wages for the people stocking the shelves, ringing you up, and keeping the lights on.”
Meanwhile, a host of independent grocery stores throughout the city worry Mamdani’s initiative is “competition” that could put them out of business. However, Mamdani insists there’s enough market available that it shouldn’t overly affect local businesses or mom-and-pop shops.
“We are not looking to compete with bodegas or grocery stores when it comes to their ability to survive. What we’re looking to do is to provide affordability that is guaranteed to New Yorkers,” said Mamdani.
Mamdani also issued a request for proposals (RFPs) for qualified grocers or firms to serve as operators of one or more N.Y.C. Groceries stores. The selected operator will be responsible for day-to-day store operations, including merchandising, staffing, and adherence to strong labor practices.
