New York City Mayor Zohran Mamdani has unveiled a bold plan to slash grocery costs by 30% at city-owned grocery stores. The proposal aims to make meat, fresh produce, and other essential food items more affordable for New Yorkers amid rising living costs. The first government-backed grocery store is expected to open in the Bronx by late 2027, with one planned for each of the city's five boroughs. While supporters say the initiative will help struggling families, critics have branded it a step toward government-controlled markets, sparking a heated political debate.
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NewsTranscript
00:00Can we all see this incredible example of produce in my hand?
00:06Now you will see these plantains here, so for anyone wondering how much these beautiful plantains might cost,
00:11you can use this QR code or head to grocery.nyc to access our policy report.
00:17I'm going to demonstrate exactly what that means.
00:24Ladies and gentlemen, the QR code does work.
00:28You can see this here.
00:33There you can learn more about our city-owned grocery store program, including the 30% discount.
00:38However, we know that for many New Yorkers, 30% at the grocery store means something very different.
00:45Since 2019, food prices have soared at grocery stores around the country by roughly 30%, in fact.
00:52Talk to shoppers around the city, and you'll often hear the same frustration.
00:56Wages have not kept up.
00:58Making matters even worse, some corporations have built out technology that allows for something called surveillance pricing.
01:06Collecting personal data to charge some people more than others for the same carton of eggs, for the same gallon
01:12of milk.
01:13Look, all of this leaves too many New Yorkers feeling like groceries are out of reach.
01:19And that is frankly unacceptable, which is why city government is stepping in to make people's lives more affordable.
01:25Today, I am proud to announce a collection of essential staples that will be predictably 30% cheaper at all
01:33five of our city-run grocery stores.
01:40This core set of goods will include all fresh produce, meat, and seafood, along with 20 other essential items like
01:47cheese, milk, and bread.
01:49Here's how it will work.
01:50Once a month, our five city-run grocery stores will set prices for this core set of goods at 30
01:56% below typical retail prices.
01:58No exceptions, no gimmicks.
02:00The savings will last for the entire month.
02:03That means no weekly fluctuations nor sticker shock at the checkout line.
02:07Not for our seniors living on fixed incomes, nor for the parents who rely on a regular supply of apple
02:13slices to keep toddler tantrums at bay.
02:15Now, can we all see this incredible example of produce in my hand?
02:25Now, you will see these plantains here.
02:27So for anyone wondering how much these beautiful plantains might cost, you can use this QR code or head to
02:34grocery.nyc to access our policy report.
02:37I'm going to demonstrate exactly what that means.
02:43Ladies and gentlemen, the QR code does work.
02:47You can see this here.
02:52There you can learn more about our city-owned grocery store program, including the 30% discount.
02:5730% off adds up to real money for New Yorkers, with an estimated $90 saved on grocery bills each
03:04month.
03:04That is more than $1,000 saved every year.
03:07And just as important as money, those savings add up to time.
03:12For many, that 30% discount is the difference between an evening spent around the dinner table with family or
03:17working another double shift to make ends meet.
03:21Our vision of affordable, well-run, city-owned grocery stores can only be accomplished with experienced operators who know how
03:29to source products, stock the shelves, and help answer shopper questions.
03:32So today we are also issuing an RFP for private operators to help us with the day-to-day management
03:39of our five city-run grocery stores.
03:41If you know how to run a grocery store and you want to do more to help your fellow New
03:45Yorkers, I encourage you to head to grocery.nyc or scan the QR code to learn more about how to
03:51apply.
03:51As we make these stores a reality, we are committed to ensuring those who work here will have good contracts
03:58for good jobs, with store workers receiving family-sustaining wages and benefits.
04:03In the wealthiest city, in the wealthiest country in the history of the world, no New Yorker should have to
04:09worry about being able to afford to feed their family.
04:12This sentiment, frankly, is not new.
04:15More than a century ago, Mayor Fiorella LaGuardia witnessed the food riots of 1917, led by immigrant mothers incensed with
04:23soaring food prices.
04:24Those mothers took to the streets to overturn push carts and eventually called for a boycott of marked-up goods.
04:31Years later, when he became mayor, he spearheaded the creation of municipally-owned markets to reduce the cost of groceries
04:38for those same immigrant mothers.
04:40He did so because he believed in a simple definition of the task of government, to make people's lives better.
04:48Today, we are one step closer to fulfilling that fundamental responsibility.
04:53Thank you very much.
04:57Now with that, I'm going to pass it over to our Deputy Mayor, Julie Su.
05:05Good morning, everybody.
05:08Thank you so much, Mayor.
05:10I also want to acknowledge our Groceries Interagency Task Force, who helped us get to this day, and many of
05:17whom are in the room with us.
05:23So as the mayor said, I'm Julie Su, the Deputy Mayor for Economic Justice, a position that the mayor created
05:29to be sure that we are utilizing all the tools of city government
05:32to make New York City, to make New York City, to make New York City a place where the people
05:35who choose to live here also know that they belong here.
05:38And that belonging isn't abstract.
05:40When you can't afford something as basic as groceries, it feels like the city is pushing you out.
05:46It means making impossible choices, eggs or bananas, milk or meat, even essential groceries or necessary medication, food to fill
05:59a lunchbox, or shoes to fit growing children's feet.
06:03A trip to the grocery store feels heavy, and that's not just because of the weight of the basket.
06:09A lot of what's pushing those prices up isn't ours to control.
06:14Wars in ocean away raise the cost of fuel, and that cost gets passed on to you.
06:21Erratic tariffs that have raised the prices of everything from coffee beans to tin cans shows up in grocery prices,
06:30too.
06:31Farms across this country are struggling, destabilizing our food supply, affecting what's available on the shelf and what it costs.
06:40And some of it is just plain old price gouging.
06:45Companies charging more, including doing things, as the mayor said, using algorithms to figure out who's desperate enough to pay
06:54what, and then charging accordingly.
06:58None of that is unique to New York City.
07:03But this city doesn't have to take it, either.
07:07Since his first day in office, our mayor has made one thing clear.
07:11The essentials of life are too important to leave to chance.
07:16To those who say, why should government be in the business of cheaper groceries?
07:20Our answer is, we've been showing since January that what government can and should be doing is about making life
07:28tangibly better for people.
07:31And ensuring that New Yorkers can put healthy, fresh food on the table is among the most important ways we
07:38can think of.
07:40So, while we don't control all the reasons that groceries are unaffordable, we are going to be ambitious and imaginative
07:49about what we can do.
07:51The mayor talked about the discount, bringing down the price by 30%.
07:56As we've also said many times, affordability is about both sides of the equation.
08:01Bringing prices down and bringing up what workers get and the number of good jobs in this city.
08:07Today, we're making absolutely clear that these grocery stores will provide quality jobs with families sustaining benefits and wages for
08:16the people stocking the shelves, ringing you up, and keeping the lights on.
08:21This is what it looks like to build a city where your government is doing everything in our power to
08:27make sure that New Yorkers can stay, can live, and can truly belong.
08:31So, with that, let me introduce our interim president and CEO of the EDC, Jeanne Pack.
08:46Good morning, everyone.
08:48This is a very exciting day.
08:50Thank you, Deputy Mayor Sue, and thank you, Mayor Mamdani, for your vision to make New York more affordable for
08:55every New Yorker.
08:56That is the heart of our groceries vision plan.
08:59NYC Groceries, a recipe for affordability.
09:01And there's no better place to release this plan than here at Campaign Against Hunger in Brooklyn, a place that
09:07demonstrates every day what it means to invest in communities and ensure families can access and afford healthy foods.
09:14And I want to thank Dr. Melanie Samuels for hosting us and for all the incredible work she does.
09:49It will bring a 30% fixed-price discount to a core basket of goods focused on healthy foods and
09:55everyday items.
09:56This innovative initiative sets a new role for the public sector in addressing food affordability and strengthening neighborhood food access.
10:04This morning, we released an RFP to identify an operator for the NYC Groceries Initiative.
10:10We are looking for a best-in-class grocery partner, an operator with the experience, expertise, and track record to
10:19run successful stores, manage complex supply chains, and deliver for working people.
10:25The city's role is clear.
10:26We set the mission, the standards, and the expectations.
10:29Our operator partner's role is to bring in the specialized grocery expertise, systems, and day-to-day management needed to
10:38make that vision a reality.
10:39We want a partner that has the expertise across every part of the business, from recruiting and training staff, managing
10:46inventory, procurement and supply chains, to merchandising and delivering consistent, high-quality customer service, creating and maintaining a dignified, pleasant
10:57shopping experience.
10:58And we want an operator dedicated to job quality and accountability, an operator that ensures workers' rights are respected, provides
11:07good-paying jobs and benefits, and safe, reliable working conditions.
11:18Public investment should deliver a public benefit.
11:22We are looking for a partner that can meet the city's standards and ensure that savings from this investment go
11:27directly to working New Yorkers, through lower food prices.
11:31I think it is important to note that the operator will not be starting from scratch.
11:35The city is providing them foundation and grocery-ready sites, as well as covering the rent and property taxes, and
11:41establishing a single public brand.
11:44All five NYC grocery stores will have a similar look and feel.
11:48We are setting requirements for affordability, job quality, transparency, and performance.
11:54We look forward to partnering with an operator who meets and embraces these standards.
11:58Addressing NYC's food affordability crisis must be intentional, direct, and meaningful.
12:06It requires thoughtful planning, operational expertise, and a commitment to delivering value every day.
12:11In the RFP, we set clear expectations for performance and articulate the affordability, job quality, and shopping experience all NYC
12:21grocery stores will share.
12:22We want an operating partner that has strong market knowledge and experience and shares our commitment to delivering the results
12:29and the long-term success of NYC Groceries.
12:33We know that there are many excellent grocery operators delivering high-quality services across the five boroughs.
12:38This RFP is an opportunity for experienced operators to help shape a new model for grocery access in our city,
12:46one that combines the strength of public investment with the expertise and innovation of private operators.
12:52We are proud to reach this important operator RFP milestone.
12:57I want to thank everyone whose hard work brought us here.
13:00I want to especially thank everyone at EDC who has worked tirelessly and thoughtfully to delivering this moment.
13:14The RFP and the vision plan is now live.
13:17Interested operators can visit, wait for this, it's kind of long, and it's a little bit longer than what the
13:22mayor said,
13:24edc.nyc forward slash NYC dash groceries dash operators dash RFP.
13:33To submit your proposals.
13:36We look forward to partnering with an operator that can help turn the city's vision into a reality,
13:41delivering affordable, high-quality groceries, creating good family-sustaining jobs,
13:47and ensuring more New Yorkers can participate in and benefit from our city's continued growth.
14:01On-topic questions to start, do some on-topic to start.
14:05Yep, right there.
14:07Mr. Mayor, what would you say to...
14:08Sorry.
14:12Hi, Mr. Mayor.
14:13Hi, how are you?
14:13What would you say to local grocery store owners who say a municipal grocery store will siphon business from them,
14:20potentially lead them to raise prices for customers or shut down?
14:24And is your administration considering other alternatives, such as maybe helping grocery store owners subsidize rents
14:30or increase their purchasing power in some way that they can then pass on to the customer?
14:35So we've talked about five city-run grocery stores, one in each borough.
14:41And thus far, we've announced La Marqueta in Manhattan and La Peninsula in the Bronx.
14:47And these two sites showcase the example of when you are speaking about a dense neighborhood,
14:53there is more than enough market for both existing grocers as well as one city-run grocery store.
14:59When we're talking about La Marqueta, we're talking about more than 65,000 New Yorkers who live within 10 minutes
15:05of that grocery store site.
15:06When we're talking about La Peninsula, we're talking about more than 150,000 New Yorkers who live in the Hunts
15:12Point area alone.
15:13And what we've seen is that the city already operates subsidized markets, for example, at Essex Street Market.
15:20And those are operating near multiple grocers, multiple bodegas, and we have not seen harm to local stores or operators.
15:28What we've also seen is that this is not the only approach that we have to dealing with the question
15:34of food, food insecurity, and also food operators.
15:37Just last week, we were proud to announce Open, which is not only more than 50 legislative reforms and regulatory
15:46reforms that will lower the cost of keeping a business open and the time that it takes to liaise with
15:51city government,
15:52but is also a permanent approach for us at city government to cut red tape to ensure that bodegas, grocery
15:59store owners, a wide variety of small businesses across New York City can continue to flourish.
16:04Because we see this as a city that is big enough for more than the 1,000 existing grocery stores
16:09that we currently have and five city-run grocery stores, one in each borough.
16:16Sorry? Yes. Yes, they will.
16:17Any other on-topic questions? Henry?
16:20Hi, Mayor. How are you doing, sir?
16:21How's it going?
16:22Good, good. I have an off-topic, but I'll hold that until the appropriate time.
16:25I'll swing back to you. Don't worry.
16:26Absolutely. Thank you.
16:26We promise.
16:27Okay. Thank you.
16:28It sounds like what you're essentially offering these purveyors of grocery services is you cover the property tax, you build
16:35out the building, you cover any sort of recurring rent, but they have to bring in the food, discount it
16:40a certain amount, high quality of wages.
16:43I mean, these are millions of dollars effectively shuffling back and forth.
16:46So I'm wondering why not just spend these millions of dollars and give to agencies like the Campaign Against Hunger
16:53or City Harvest or, you know, just direct established food programs.
16:59We see in this city an opportunity to take an all-of-the-above approach.
17:03We are going to continue to work with incredible partners like the ones that we're here with today, as well
17:07as ensure that food pantries across the five boroughs can flourish.
17:10And what we have seen is that far too often when it comes to city government's approach to delivering on
17:18affordability for groceries, there's always been the question of intermediaries, whatever it may be.
17:24And we are excited to deliver directly to New Yorkers that lower cost of essential goods.
17:30We're talking about a 30% discount across essential goods that will be the same at every single one of
17:35those five city-run grocery stores.
17:37And what we are also talking about is city-run grocery stores, which will not be selling cigarettes or alcohol
17:44or lottery tickets or hot foods.
17:46Those are a lot of the places that drive revenue for a lot of existing grocers, existing bodegas.
17:53This is an approach that looks to address the question of affordability and food access without also harming the ability
18:00for other entities to continue to exist.
18:02Any other on-topic questions?
18:04Marsha?
18:05Oh, yeah, I'll swing back to you for the off after.
18:07No, but I have an on-topic question as well.
18:09Yep, great.
18:09On-topic now, we'll swing back to you for the off.
18:12Mr. Mayor, I know that you talked about the fact that the grocery stores are not going to sell lottery
18:17tickets and cigarettes.
18:18Do you think that the income from those things in bodegas will offset the possibility of a loss of business?
18:25Because the bodega owners are really worried that they're going to be hurt.
18:29And so is your argument that the other things that they're able to sell will offset that loss?
18:35My argument is multifaceted.
18:39The first thing I would say is that this is a model that builds off of what we already see
18:43in existence with Essex Street Market.
18:45And with that approach, there is a discounted approach that has not yielded any kind of a negative impact on
18:52bodegas or grocery stores around it.
18:54And we know that because if it had been, it would be something that we'd be talking about.
18:57And yet what it has been is instead accepted as a fabric of life in that neighborhood.
19:02The second is that we are not looking to compete with bodegas or grocery stores when it comes to their
19:10ability to survive.
19:11What we're looking to do is to provide affordability that is guaranteed to New Yorkers.
19:16And we know that a lot of what drives revenue for these bodegas, grocery stores, those are things that make
19:21it possible for them to continue to operate.
19:22Those are not things we have any interest in competing for.
19:25The last point that I would say is the absence of affordability in the city has pushed so many working
19:32-class New Yorkers out of the city.
19:34And those are working-class New Yorkers that could be customers for these bodegas, that could be customers for grocery
19:40stores across the five boroughs.
19:42And instead, we've seen an exodus.
19:45And we also know that where we are in New York City, it's important to acknowledge that the affordability crisis
19:51has affected every New Yorker.
19:52However, that effect has not been evenly borne.
19:54Black New Yorkers, 200,000 black New Yorkers have been pushed out of the city in the last few decades.
19:59And that's effectively a reverse Great Migration.
20:02And that's something that we have to bring to an end with every single tool at our disposal.
20:06Any more on-topic questions?
20:08Gentleman there.
20:09Hi, how's it going, Mr. Mayor?
20:11How's it going?
20:11Question about the essential basket of goods.
20:13You said they're going to be 30% cheaper than they would be at the grocery store down the street,
20:17or even if there's one not down the street, if it's a food desert.
20:20How are you going to keep people from taking advantage of that deal, basically?
20:27And is there going to be a limit on the number of items that someone can take that are discounted
20:31at that level from that essential basket?
20:32So our RFP makes very clear that this is a program for New Yorkers to be able to put food
20:38on the table, not a program for people to be able to make a quick buck through reselling.
20:42I'm going to pass it over to our EDC head, G-Pack, to add some additional details.
20:47Yes, if you look at our RFP for the operator, we are looking to make sure that we target New
20:53Yorkers, whether it be sort of a library card-esque, and also we manage who's buying and that it's focused
21:00on everyday New Yorkers.
21:01So we are mindful of that, and so we're going to make sure that we have all the things in
21:06place to make sure that that does not happen.
21:08And one more question for you.
21:10I know that you mentioned at a board meeting that La Marqueta was supposed to be potentially a draw for
21:15people from other neighborhoods to come and visit that market, that the city-run grocery stores would be a novelty
21:21or at least something that people were excited to go to from other neighborhoods.
21:24Do you see that being the model for all five markets across the city?
21:28I mean, we came here today to East New York, and there wasn't an announcement of a new location here.
21:33Could you see that type of thing happening?
21:35Yeah, I think to enhance what the mayor had just said, we are looking for these NYC grocery stores to
21:40enhance neighborhoods so that businesses there like the local bodegas and independent grocery stores and other small businesses in that
21:46neighborhood are strengthened through this NYC grocery initiative.
21:49So, yes, we're envisioning that as part of the NYC grocery initiative to strengthen neighborhoods.