Critics Slam Mamdani's Grocery Scheme as Costly Illusion for Taxpayers

WHO:

Yahoo Finance - New York City Mayor Zohran Mamdani announced a plan for city-run grocery stores.

Yahoo Finance - Kevin O'Leary, "Shark Tank" investor and entrepreneur, criticized the grocery plan.

WHAT:

Yahoo Finance - Kevin O'Leary stated, "Margins in grocery are 2-3% pre-tax margins so reducing selling prices by 30% across the board will guarantee that the stores will lose money on every sale."

Yahoo Finance - O'Leary added, "Who will pay for those losses? You the @nyc tax payers. You are getting fuc$ed!"

Yahoo Finance - Mamdani's plan includes opening subsidized city-run grocery stores in every borough.

Yahoo Finance - The grocery stores are projected to provide a 30% discount on produce, meat, and other staples.

Yahoo Finance - The plan is expected to save shoppers about $90 a month, or roughly $1,000 a year.

Fox News - Economists question whether the grocery stores can deliver the promised savings or if costs will shift to taxpayers.

Yahoo Finance - Mamdani allocated $70 million in the capital budget to execute the grocery plan.

WHERE:

Yahoo Finance - The grocery stores will be located in each of New York City's five boroughs.

Yahoo Finance - The first grocery store is expected to open toward the end of 2027 in the Bronx.

WHEN:

Yahoo Finance - The first grocery store is expected to open toward the end of 2027.

WHY:

Yahoo Finance - The grocery plan aims to help offset rising food prices and make groceries more affordable for struggling families.

Yahoo Finance - O'Leary argues that the plan will ultimately require taxpayer subsidies and could harm existing neighborhood businesses.

HOW:

Yahoo Finance - The city has put out a formal request looking for private grocery operators to partner with.

Yahoo Finance - The city will cover the costs of the store's rent, maintenance, and property tax.

Yahoo Finance - Private operators will be responsible for working with food distributors to stock shelves and manage the stores.

(UPDATED July 29, 2026 16:25 UTC)

Kevin O'Leary has raised concerns about the grocery sector, stating that reducing selling prices by 30% could lead to significant losses for stores, given that pre-tax margins are only 2 to 3 percent. He emphasized that taxpayers in New York City would ultimately bear the burden of these losses, expressing his frustration with the situation. In response, the city has issued a formal request seeking private grocery operators to partner with them.

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(UPDATED July 29, 2026 07:57 UTC)

New York City Mayor Zohran Mamdani has announced an ambitious plan to open city-run grocery stores in all five boroughs, aimed at providing a 30% discount on essential items and saving shoppers about $90 a month. The first of these stores is expected to open in the Bronx toward the end of 2027, with a budget of $70 million allocated to support the initiative. However, "Shark Tank" investor Kevin O'Leary has criticized the plan, suggesting it may lead to taxpayer subsidies and negatively impact local businesses.