An exclusive report by the New York Post revealed that an immigrant-led business group is gearing up to sue New York City over Mayor Zohran Mamdani’s plan to open five taxpayer-owned grocery stores. The Multicultural Business Coalition claims that the $70 million project will create unfair competition for nearby stores.
The organization was formed earlier this year to create a unified front against Mamdani’s grocery policy. It includes 50 chambers of commerce representing Asian, African, Caribbean, Hispanic, Middle Eastern and Jewish-owned businesses in New York.
The group’s chairman Frank Garcia said that MBC plans to raise $1 million to fight some of the mayor’s initiatives. He added that the suit “should be a non-partisan initiative.” The group plans to send a letter in the coming days notifying Mamdani’s office of its plans to take legal action.
READ: Mamdani unveils 30% discounts at planned NYC grocery store (July 27, 2026)
The report noted that these funds would be used for efforts to raise awareness about the plight of its mom-and-pop shop members, many of whom struggle to secure capital, fend off shoplifters and keep up with rising costs including rent and taxes.
While Garcia declined to give out specific details, MBC and other similar groups have criticized the city for pursuing the government-run supermarkets regardless of whether they hurt existing stores in lower-income areas that are already feeling major financial pressures. They are, in particular, pointing to five bodegas within just a few blocks of the city-run store planned for East Harlem, in the space known as La Marqueta.
According to their claims, some of the store owners fear they will be put out of business when customers discover the cheaper prices at Mamdani’s stores which would not have to pay rent since they will be built on municipal property.
“Having items that sell for 30% less than our prices, means nobody will go to our stores,” Radhames Rodriguez, president of the United Bodegas of America told the NY Post.
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Several groups and individuals, including conservative think tanks and politicians have offered funding and assistance to MBC, according to the report.
Mamdani, who had made affordability a key part of his agenda, elaborated his plans for government-owned grocery stores on Monday. He announced the stores would provide a 30% discount on produce, meat and a host of other kitchen staples as a way to offset rising food prices.
Other products sold at the stores will be offered at market prices rather than the discounted rate. The city’s Economic Development Corporation estimates that the discount could save shoppers about $90 a month, or close to $1,000 a year, for the core basket of goods.