New York City grocers prepare lawsuits over government-owned supermarket plan

A coalition of immigrant-owned grocers is preparing to file lawsuits against New York City over Mayor Zohran Mamdani’s plan to establish government-owned supermarkets. The Multicultural Business Coalition, representing 50 chambers of commerce for diverse ethnic businesses, intends to pursue legal action in both state and federal courts.

The proposed federal case will focus on allegations of antitrust violations and predatory pricing, while the state-level action may involve claims of tortious interference and discriminatory practices. The coalition expressed concerns that the city-owned stores could paralyze existing operations, reduce profit margins, or force small businesses out of the market.

The city is currently seeking operators for five supermarkets at an estimated taxpayer cost of $70 million, with bids due on October 16. Despite attempts to resolve the matter amicably through correspondence with City Hall, the coalition indicated they are at the “11th hour” regarding litigation.