A former grocery store owner has voiced concerns about New York City Mayor Zohran Mamdani’s proposal for government-run grocery stores. The plan could threaten many small businesses, forcing them into direct competition with the city-run stores.
Rep. Mike Rulli, representing Ohio, expressed skepticism about the sustainability of these stores. He believes that these stores will face financial difficulties from the outset and may not survive beyond a few years. Rulli speaks from experience, having grown up with his family’s grocery chain, Rulli Brothers, in Ohio, which is now managed by his siblings.
Rulli emphasized the adverse impact on small businesses in New York City, many of which are operated by immigrant families. He criticized the mayor’s plan for potentially putting hundreds of these establishments out of business.
Mamdani, identified as a Democratic socialist, announced the government-funded grocery initiative during his campaign. The city has allocated $70 million to open one store in each of the city’s five boroughs, aiming for completion by 2030. During a news conference, Mamdani highlighted that these stores will offer prices 30% below typical retail for certain goods once a month.
While progressives support the plan, business groups like the Multicultural Business Coalition are critical, with some threatening legal action. Rulli pointed out the challenges faced by grocery stores, which generally operate on slim profit margins. He foresees financial losses for Mamdani’s proposed stores.
“When you think about the grocery industry, [it] runs on about 27% gross. That’s before you pay your bills. Once you pay your bills, you’re about one-and-a-quarter, one-and-half-percent net,” Rulli explained.
This situation, he argues, would burden taxpayers continually. Rulli called the plan a significant misstep by the mayor.
The article’s reporter, Elizabeth Elkind, covers politics for Fox News Digital, with prior work published at Daily Mail and CBS News.