New York City targeted in lawsuit challenging Mamdani’s grocery store plans

A coalition representing immigrant-owned grocers is targeting New York City in a lawsuit over democratic socialist Mayor Zohran Mamdani’s plans to open multiple government-owned grocery stores in the Big Apple, a government intervention that is expected to cut into the profits of regular markets.

The lawsuit was expected to be filed Monday at 8 a.m. ET, following efforts to resolve the solution out of court.

The coalition, which argues that the plan violates New York civil rights laws and the state Constitution’s Equal Protection Clause, is asking the court to permanently block the city-owned grocery stores from opening, according to a copy obtained by FOX Business.

“Although we have not heard from you since May 2026, we are open to resolving this matter amicably with more sensible solutions to feed working class people with nutritious essential food items at affordable prices,” the Multicultural Business Coalition’s president, Kenneth Roldan, declared in a letter to City Hall, according to a New York Post report last week.

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New York City Mayor Zohran Mamdani listens as Gov. Kathy Hochul speaks during a press conference on Immigration and Customs Enforcement (ICE) actions on Aug. 12, 2026, in New York City. (Michael M. Santiago/Getty Images / Getty Images)

“We are asking the mayor to avoid litigation to sit down with us,” legal counsel for the coalition, Mark Jaffe, the president of the Greater New York Chamber of Commerce, told the outlet. “But we have to try to stop this if they won’t listen to us.”

The first of five planned government-linked grocery stores is expected to open next year, the mayor’s office announced earlier this year.

Mamdani said Monday he is “fully confident in both the legality and the importance of our initiative.”

“We are talking about a reflection of a cost of living crisis that has seen grocery prices increase by about 30% over the last few years, and we’re also talking about delivering five city-run grocery stores in a city of 8.5 million people that has more than a thousand grocery stores,” Mamdani said. “And we’ve seen, in fact, with Essex Street Market in Manhattan, as well as, more Street Market in Brooklyn, a model where the city has subsidized groceries and it has not had a negative effect on bodegas around them or on grocery stores around them.”

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“Under the model, the City will own the land and cover overhead costs like rent and construction. A private operator, selected through a request for proposals, will manage daily operations and be contractually required to pass savings directly to customers on a core basket of everyday staples,” an April news release stated.

READ A COPY OF THE LAWSUIT – APP USERS, CLICK HERE:

Mamdani has claimed that prices for a core basket of grocery items will be priced 30% lower than normal retail prices at the government-affiliated stores.

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Zohran Mamdani, mayor of New York, holds up bananas labeled with a 30% off sticker during an announcement of municipal grocery stores at a Campaign for Hunger community food distribution center in the Brooklyn borough of New York, on Monday, July 27, (Adam Gray/Bloomberg via Getty Images)

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“This core set of goods will include all fresh produce, meat and seafood along with 20 other essential items like cheese, milk and bread. Here’s how it will work: Once a month, our five city-run grocery stores will set prices for this core set of goods at 30% below typical retail prices,” he said last month.

FOX Business’ Madison Alsworth and Sumner Park contributed to this report.