Grocery CEO threatens store closures if democratic socialist wins NYC mayoral race

In New York City, mayoral candidate Zohran Mamdani proposed a plan to establish city-owned grocery stores aimed at reducing food costs. This initiative comes amidst growing concerns over food insecurity, with Mamdani claiming that private grocery chains are price gouging. The proposal has faced backlash from industry leaders, particularly John Catsimatidis, CEO of Gristedes, who warned that he may close or sell his grocery operations if the plan moves forward. Catsimatidis argued that city-run supermarkets would hinder competitive market dynamics, making it impossible for his business to thrive. Despite Mamdani's intentions of providing a public option to address food costs, critics raised concerns regarding the feasibility and potential for corruption within city-run operations. Some economists suggested enforcing antitrust laws could be a more effective way to encourage price competition among grocery providers. As the election approaches, the dialogue between Mamdani’s vision for grocery reform and the responses from established grocery leaders highlights the tension between public policy proposals aimed at addressing food insecurity and the realities of market operations. Candidates, including Mamdani, have been vocal about redirecting city funds to establish these grocery stores, which would have a mission to lower prices rather than focusing on profit. Mamdani’s broader platform includes efforts to alleviate other living costs for New Yorkers, which resonates with many constituents facing financial difficulties. However, as election day nears, the debate over the practicality of his grocery store plan continues to unfold, raising questions about its potential impact on local businesses and the effectiveness of government intervention in economic matters.