Experts Criticize NYC Mayor’s Government-Run Grocery Store Plan

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A former grocer has joined those criticizing New York City Mayor Zohran Mamdani’s proposal for publicly operated grocery stores. Critics argue it would harm many small businesses that would have to compete with government-run stores.

“That supermarket will just bleed red the entire time it’s open, from the first time you turn the key until it closes,” said Rep. Mike Rulli, R-Ohio, in an interview with 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 comes from a family with experience in grocery retail. His family owns Rulli Brothers, a grocery store chain in Ohio, now managed by his brothers.

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Rulli believes his background has provided insight into the difficulties faced by small business owners in New York City. He warned that Mamdani’s plan would negatively impact these business owners, especially those run by immigrants.

Mayor Mamdani, a Democratic socialist, unveiled his plan to fund government grocery stores during his campaign. The city committed $70 million to build one store in each borough, intending to open all by 2030.

During a recent news conference, Mamdani stated, “Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices.” Despite applause from progressives, business groups like the Multicultural Business Coalition criticized the plan, with threats to sue the mayor reported by the New York Post.

Rulli expressed concern about the feasibility of government-operated stores, noting that grocery stores already operate on thin profit margins. “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 said.

Such margins, he asserted, would likely ensure that these stores operate at a loss, burdening taxpayers. Rulli concluded, “This is the biggest mistake the mayor has made.”