NYC Mayor Mamdani to open five city-run grocery stores selling staples at 30% below retail

Jing Pan Tue, July 28, 2026 at 1:35 PM PDT 10 min read

New York City Mayor Zohran Mamdani has unveiled a remarkably straightforward solution to soaring grocery bills: sell food for less.

"Today, I am proud to announce a collection of essential staples that will be predictably 30% cheaper at all five of our city-run grocery stores," Mamdani said at a news conference Monday.

The discounted basket will include all fresh produce, meat and seafood, along with roughly 20 additional categories of essential goods, including eggs, milk, cheese and bread.

Prices will also remain fixed throughout the month rather than fluctuating from week to week.

"Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices. No exceptions, no gimmicks," Mamdani said.

"The savings will last for the entire month. That means no weekly fluctuations or sticker shock at the checkout line."

The discount will be available to everyone, regardless of income.

Estimated Savings for Shoppers

City officials estimate that the program could:

• Reduce the average shopper's total grocery bill by approximately 15%
• Save around $90 a month
• Save roughly $1,000 a year

That could provide meaningful relief in a city where food costs have become another major source of financial pressure. Grocery prices nationwide have risen 33% since 2019, according to the mayor's office.

Funding and Timeline

The city has allocated $70 million in capital funding to develop the five locations, with one planned for each borough.

| Borough | Location | Expected Opening | |---------|----------|-----------------| | Bronx | Peninsula development, Hunts Point | End of 2027 | | Manhattan | La Marqueta, East Harlem | TBD | | Brooklyn | TBD | By 2029 | | Queens | TBD | By 2029 | | Staten Island | TBD | By 2029 |

All five stores are expected to open by 2029.

Criticism from Local Grocers

A 30% discount on essential groceries could be a welcome development in a city known for its high cost of living. But critics argue that making food cheaper is not as simple as changing the number on the price tag.

Antonio Pena, president of the National Supermarket Association, which represents 450 stores in New York City, argued that Mamdani's plan would hurt local grocers.

"To have the city decide to open a store in the same neighborhood in which our members are operating at already low margins — because running a store in the city is very expensive, extremely expensive — we feel that it's a big slap in the face to us," Pena said.

Frank Garcia, chairman of the Multicultural Business Coalition, was even more blunt. He warned that the city's discounts would "put our businesses out of business," asking, "How are you going to compete with that?"

Broader Economic Context

The controversy also points to a much broader problem: Americans are paying significantly more for everyday necessities after years of persistent inflation.

Even though headline inflation has cooled from its 2022 peak, prices have not returned to where they were. They are simply rising at a slower pace, leaving households to absorb the cumulative damage already done to their purchasing power.

While the Mamdani administration highlighted the 33% increase in grocery prices since 2019, the blunt reality is that inflation has been eroding the value of the dollar for decades — and across nearly every category of spending.

According to the Federal Reserve Bank of Minneapolis, $100 in 2026 has the same purchasing power as just $11.74 did in 1970.

That's right. $100 became less than $12.

This can help explain why the cost of living remains a central concern for New Yorkers — and why the mayor's grocery plan has sparked both hope and controversy.

Spencer Platt / Getty Images

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content above.