NYC Mayor Zohran Mamdani's grocery store plan is facing a second lawsuit.
Bloomberg/Getty Images
New York City is facing a second lawsuit from private grocers over Mayor Zohran Mamdani's city-run supermarket initiative.The latest case, filed in federal court Wednesday morning, alleges that the administration's plan to roll out five government-funded stores will undercut local competitors in violation of US antitrust laws. The suit is led by the trade group National Supermarket Association, with backing from other retailers and private grocers.It follows a lawsuit filed last month at the state level, in which the Multicultural Business Coalition said the Mayor's Office is creating an unfair business environment for NYC vendors.
EDC leaders added they are considering offering subsidies to some local NYC grocers to alleviate their fears about competition from the new city-run stores, but none have been announced.The Mayor's Office did not immediately respond with comment on the September 9 suit. At an August press conference, Mamdani told reporters that "I'm confident in both the legality of this — that it will stand up in court — and the importance of delivering it."In the meantime, the city is accepting applications from prospective operators to run the supermarkets. Those applications are due in October. One applicant told Business Insider that it's financially challenging to operate grocery stores — big or small — and "It's going to be important that the city, and the operator, understand those economics."
