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The hidden cost of Mamdani’s plan for cheap groceries

New York City probably can’t deliver “Costco For All.”

New Yorkers will soon enjoy a 30 percent discount on their meat, seafood, milk, and bread — so long as they shop at a city-owned store.

Mayor Zohran Mamdani touted such bargains this week at a press conference detailing his plans to launch five public grocery stores, in a bid to lower New Yorkers’ food costs. Under the proposal, the city would own each supermarket and dictate its pricing and labor practices, while private grocery companies would handle the day-to-day operations.

• Mamdani plans to open five city-owned grocery stores offering steep discounts on staple foods.• Public stores can help where private grocers are absent, but that is not the main problem in New York City.• The stores are unlikely to sell food more efficiently than large private retailers.• The same public money could reach more low-income New Yorkers through direct food assistance.

Mamdani’s proposal has been getting people worked up from the moment he unveiled it on the campaign trail for his 2025 mayoral run. For many progressives, state-owned supermarkets embody one of their movement’s highest ideals — the prioritization of public needs over private profits. For conservatives, meanwhile, “Mamdani Marts” represent an attack on free enterprise (if not, the first step on the road to Soviet breadlines).

While stimulating, these grand philosophical arguments have often overshadowed more banal but pressing questions: Would public grocery stores do more to advance Mamdani’s stated goals than other things the city could do with the same money? Has New York’s mayor discovered a way to sell groceries more efficiently than Costco does — or an approach to nutritional relief more effective than simply giving poor people more cash and food?

The answer to both of these questions appears to be “no.” And that should concern more than just New Yorkers. Mamdani’s vision is already inspiring imitators, with San Francisco and Boston both exploring their own public grocery store proposals. And in national discourse, the mayor’s policy is widely understood as an experiment — one testing a bold new theory of how governments can make food more affordable.

Unfortunately, although public grocers have merit in some circumstances, the theory underlying Mamdani’s specific plan is not merely unproven but incoherent.

Grocery socialism makes more sense for small-town Republicans

Public grocery stores have historically aimed to solve a problem that New York City does not have — a total absence of private supermarkets.

In 2018, the small town of Baldwin, Florida lost its only grocer. With only 1,600 residents — and a median income of $44,271 — the community no longer generated enough business to be worth the local IGA’s while. And no other national chain rushed in to fill the gap.

So, the municipality opened its own grocery........

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