Mamdani Sued By Minority Business Owners Over City-Run Grocery Stores

New York Mayor Zohran Mamdani is facing a lawsuit from the Multicultural Business Coalition, a nonprofit representing hundreds of minority- and immigrant-owned businesses, over his plan to open five city-run grocery stores. The class action lawsuit, filed Monday in state Supreme Court, argues the city has conducted no studies on how the stores would impact existing businesses in the five boroughs. Mamdani's $70 million initiative would hire a private operator to run stores that sell groceries 30% below average retail prices, with no rent or property tax obligations. The mayor defended the plan's legality at a news conference, citing Essex Street Market and Moore Street Market as examples of city-subsidized groceries that haven't hurt nearby bodegas. Mamdani said the city is identifying regulatory changes, including licensing requirements, to help bodega and grocery store owners cut costs.