NEW YORK – Greek-American businessman John Catsimatidis expressed reservations about New York City Mayor Zohran Mamdani’s plan to create five city-run supermarkets, arguing that the initiative could place additional pressure on already struggling local businesses.
Speaking to Fox News Digital, Catsimatidis said that those most likely to be affected would be small grocery stores and existing supermarkets in the areas where the new stores would operate.
Mamdani’s plan calls for one municipal supermarket in each of New York City’s five boroughs. The first is expected to open in Hunts Point in the Bronx in late 2027, with the goal of having all five operating before the end of his term in 2030. The program has been allocated a $70 million capital budget.
According to the city administration, the stores will offer basic food items – including meat, seafood, and fresh produce – at a 30% discount, as part of an effort to address the rising cost of living.
Catsimatidis focused primarily on the city’s intention to cover the property costs and related taxes for the five stores. He told Fox News that this would create an uneven playing field for private businesses.
“If I don’t have to pay rent or property taxes, I can reduce the cost of a product by 20% across the board,” he said, also noting that supermarket profit margins average only between 1% and 3%, while New York City businesses are simultaneously facing competition from companies based outside the city that sell online.
He also referred to Manhattan’s congestion pricing and rising electricity costs. According to him, suppliers making deliveries to Manhattan pass some of the additional costs on to businesses, with the added charges, in his estimation, reaching 10% to 15%.
“The overall picture is that five stores in five boroughs are good only for public relations and won’t really help those who are hungry,” Catsimatidis told Fox News Digital, arguing that the priority should instead be reducing the operating costs faced by businesses in the city.
