Portside

Mayor Zohran Mamdani recently unveiled his plan to establish city-operated food stores across New York City, beginning with one location in each of the five boroughs. By focusing strictly on basic, unprepared whole foods, the program aims to provide fresh, affordable options without undercutting local neighborhood delis, bodegas, or small supermarkets. Estimates project that these stores could save average New York families nearly $1,000 annually while creating good local jobs. Moreover, introducing lower-cost public entities could exert pressure on private chains to rein in prices.

Despite the clear benefits of this program for the 1.2 million New York City residents who experience food insecurity, including one in five children, business groups like the National Supermarket Association oppose municipal-run food stores. Opponents often dismiss the initiative as "communism" simply because it involves public administration. However, this rhetoric ignores a glaring reality that gigantic, for-profit corporate grocers are posting historic profit margins while everyday New Yorkers struggle with inflated grocery bills. Given today’s challenging economic landscape and recent federal policy rollbacks, publicly run food stores are a practical, common-sense idea worth pursuing.

Unions should support municipal run food stores

Notably, New York City unions have not yet taken a formal stance supporting or opposing the plan but it is firmly in their interest, and that of their members, to back it. Unionized city employees, low-wage service workers, and hospital and university staff are among those hardest hit by soaring food prices. In fact, according to the city’s Human Resources Administration, 93% of SNAP recipients are currently employed.

Furthermore, municipal markets creates decent jobs and presents a direct organizing opportunity. The mayor’s plan incorporates Labor Peace Agreements to safeguard workers' rights to unionize, ensure fair labor standards, and make city-owned spaces available for organizational meetings.

The Reality of Price Gouging and Corporate Subsidies

A recent investigation by the Associated Press highlighted how the private food industry maintains elevated prices long after wholesale supply costs have dropped. This is known as price gouging. Nationally, food costs surged 33% between 2019 and 2024, the sharpest increase since the 1970s. U.S. Bureau of Labor Statistics data shows prices have crept up an additional 3.1% over the last year and a half. While these figures represent national averages, residents in large metropolitan areas like New York City often face much higher costs than those in rural communities.

Opponents often cite mega-retailers like Walmart as proof that the private market delivers lower prices. However, those low prices are heavily subsidized by taxpayers. Rather than offering comprehensive, self-funded health benefits, these corporations rely on their employees enrolling in state Medicaid programs. Taxpayers end up footing the bill for their workers' healthcare while corporate executives pocket the profits.

New Yorkers Voted for Affordability

New Yorkers voted for solutions to the cost-of-living crisis. Working families want affordable food at a fair price, not ideological lectures about socialism or "unrealistic" programs. Mayor Mamdani’s proposal directly targets household expenditures, which is precisely why voters backed his affordability agenda.

This affordability crisis has been severely exacerbated by federal policy choices. The passage of the "Big Beautiful Tax Bill" delivered massive tax cuts to billionaires and corporations at the expense of working-class families.

Nationally, approximately 4.5 million people have lost access to Supplemental Nutrition Assistance Program (SNAP) benefits due to tighter federal rules. Last year alone, federal funding for food pantries was slashed by $1 billion.

According to The New York Times, 22,000 NYC adults lost SNAP coverage in June of this year due to newly imposed work requirements. An estimated 281,000 more are at risk of losing coverage.

Claims that these restrictions combat widespread fraud or that non-citizens are abusing the system are completely unfounded. I represented Eligibility Specialists who process these claims while as an elected union official, I know firsthand that the system already rigorously checks applications. The new rules do nothing to reduce the minimal fraud that does exist. They simply strip essential food aid from vulnerable people.

The Severe Toll of Food Insecurity

Food insecurity carries severe health consequences, particularly for children. Children in food-insecure homes face elevated risks of malnutrition, stunted growth, and developmental delays. Besides children the most adverse affected communities are the elderly, disabled and single parents. 

Lack of nutrition correlates directly with higher rates of childhood obesity, diabetes, anxiety, and depression. Hunger hampers concentration and increases absenteeism, directly impacting school performance. Black and Hispanic children disproportionately bear the burden of food insecurity and its associated health issues.

Public Models Work: Look at NYC H+H and CUNY

Publicly run institutions can operate efficiently and deliver high-quality services. Municipal grocery stores would accept SNAP benefits, allowing federal and state dollars to flow into store operations alongside customer sales, minimizing the long-term net cost to the city.

We already have successful public models operating in New York City every day: NYC Health + Hospitals (NYC H+H) is the country’s largest public healthcare system. NYC H+H delivers high-quality care across all five boroughs. It operates with an administrative overhead of just 3% to 5%, compared to 20%+ in the private sector. Bellevue Hospital saved my life during a severe asthma attack in 1985, and I still get my healthcare there today. They service everyone, regardless of ability to pay.

Mayor Adams started the improved school nutrition programs and had NYC H+H run it. This program could be used for the new municipal markets to stock fresh, nutritious food. 

The City University of New York (CUNY) has provided affordable higher education to generations of New Yorkers who could not otherwise afford a private college degree. This includes figures across the political spectrum, such as former Mayor Rudy Giuliani. I got my college degree at a CUNY institution and could never have afforded to attend a private school. 

Rather than dismissing the mayor’s plan with political attacks, critics should offer constructive alternatives or give the initiative a chance to prove its merit. Persistent criticism without a counter proposal does nothing to help struggling families. It is time to prioritize affordability, health, and practical solutions over politics.

[Ralph Palladino is a former vice president of Local 1549 Clerical Administrative Employees (AFSCME)]