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New York to Open Five City‑Run Supermarkets With 30% Off Basic Foods

Funded with $70 million in capital, the city will hire private operators through an NYCEDC RFP to run the stores.

Overview

  • Mayor Zohran Mamdani announced the plan on Monday to create N.Y.C. Groceries, a network of five municipal supermarkets offering a fixed 30% discount on a defined basic-food basket to all customers.
  • The discount will apply to a monthly-priced basket that includes fruits, vegetables, meats, fish, eggs, milk, bread, cheese and about 20 pantry categories with no income checks required.
  • The New York City Economic Development Corporation will run the public–private program using $70 million for capital, with a virtual RFP briefing on Aug. 5 and proposals due Oct. 16, 2026, the first store set for Hunts Point in late 2027 and the full network targeted by 2029.
  • Small-store and bodega groups have warned the plan could undercut neighborhood businesses because supermarket margins are thin, and city officials say municipal stores will not sell lottery tickets, tobacco, alcohol or prepared hot meals to limit direct competition.
  • City estimates put average household savings at about $90 per month, but the program’s success will depend on operator selection, how subsidies and costs are managed, and where the remaining Brooklyn, Queens and Staten Island sites are placed.