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A proposal by New York City Mayor Zohran Mamdani to open a city-run grocery store is facing push back from East Harlem grocers who say the area is already saturated with supermarkets and bodegas.
The plan, part of a broader effort to address rising grocery costs in the city, would establish publicly run stores across New York’s five boroughs — but the push to improve affordability could come at a cost for small businesses already on thin margins.
The first store is expected to open next year in La Marqueta, an existing public market space at Park Avenue and 115th Street in East Harlem. The city will spend roughly $30 million to build the store.
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La Marqueta, a Latino marketplace in East Harlem, is chosen as the site of the first city-owned grocery store announced by NYC Mayor Zohran Mamdani, on April 14, 2026. (Kendall Rodriguez/Newsday RM/Getty Images)
Roughly 45 grocery stores sit within a 35-minute walk of the proposed grocery site, according to a Fox News Digital analysis.
The existing stores include a mix of major chains like Whole Foods and Lidl as well as smaller neighborhood markets and bodegas.
The area is also well served by public transit. There are multiple subway and bus lines giving residents several ways to reach nearby stores if they are not in reasonable walking distance.
Some local grocers say the added competition of the city-owned store could hurt their businesses.
“Of course it will affect this store,” said Sarah Kang, manager at a CTown Supermarkets location about a 35-minute walk south, or one subway stop, from La Marqueta.
“A lot of people walk 20 to 30 minutes to get here,” she explained to Fox News Digital. “If they find a cheaper supermarket, I don’t think they’ll be willing to make that trip. It’s going to affect small grocery stores. Definitely.”
“I hope we don’t lose customers,” Kang added.
About a 30-minute walk north of La Marqueta, Joel Martinez, a manager of a supermarket at 128th Street and Frederick Douglass Boulevard, said the impact may depend on proximity to the proposed site.
“I hope it doesn’t impact us,” Martinez said in a call with Fox News Digital. “The store will be a little far from us, so that’s good. But it will affect smaller businesses that are closer.”
Bodegas and small grocery stores are a staple of New York City neighborhoods, often serving as primary food sources for nearby residents.
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Mamdani has previously said the public grocery stores will be exempt from paying rent or property taxes, a move aimed at lowering overhead costs. (Leonardo Munoz/VIEWpress/Getty Images)
Mamdani’s office did not immediately respond to Fox News Digital’s request for comment. The mayor plans to open five city-run stores, one in each borough, by 2029.
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Similar proposals for local government-owned and operated grocery stores and markets have surfaced in other cities, including Boston.
Officials in Atlanta appear to have trailblazed the effort, and already opened a city-backed grocery store to improve food access in underserved areas.
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