By New York Post (U.S.) | Created at 2026-08-19 21:40:52 | Updated at 2026-08-19 21:48:20
27 minutes ago
A group of immigrant-owned grocers who have threatened to sue New York City over Mayor Zohran Mamdani’s plan to open government-owned supermarkets is poised to take legal action as soon as this week, The Post has learned.
The Multicultural Business Coalition, which is comprised of 50 chambers of commerce representing ethnically diverse businesses, made a last-ditch effort to avoid litigation in a letter to City Hall on Wednesday.
“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 coalition’s president Kenneth Roldan wrote in the letter obtained by The Post.
The coalition is still weighing whether to file in state court or federal court — or both, Roldan told The Post in an interview on Wednesday.
“We are at the 11th hour — we have multiple versions of the lawsuits that have been prepared,” Roldan said. “The federal case will be based on antitrust and predatory pricing. The state cause of action will be tortuous interference and possibly discriminatory practices by the administration.”
He added that the group — which represents Asian, African, Caribbean, Hispanic, Middle Eastern and Jewish-owned businesses in New York — has been repeatedly rebuffed by City Hall since May when it first requested meetings with the socialist mayor.
The city recently issued a request for proposals and is seeking operators for five city-owned supermarkets that will cost taxpayers $70 million. Bids are due Oct. 16.
The city’s RFP “demonstrates a lack of understanding of the supermarket industry and raises questions about the efficacy of the plan,” according to the letter, adding that city-owned grocers “could paralyze their operations, reduce their slim profit margins or even force some out of business entirely.”
“We are asking the mayor to avoid litigation to sit down with us,” Mark Jaffe, who is legal counsel to the group and president of the Greater New York Chamber of Commerce told The Post. “But we have to try to stop this if they won’t listen to us.”
The city’s plan calls for existing grocery store operators to run the five stores – which will not have to pay rent or taxes because the buildings are owned by the government – and to provide a 30% discount on basic items like produce, meat, milk, cheese and bread.
City Hall projects the markdown will save shoppers an average of $90 a month or $1,000 a year, roughly around 15% off their bill.
Nearly $40 million has been earmarked for the first two selected locations – in Harlem and the Bronx at Hunts Point – while the remaining three still don’t have confirmed sites.
There are about 15 food bodegas and grocery stores within five blocks of La Marqueta in East Harlem.
“How can a Food Bazaar right across the street from La Marqueta not be affected by such discounts?” said Jaffe.
The potential plaintiffs in a lawsuit are also concerned about retaliation from city officials, according to the coalition’s chairman, Frank Garcia.
“There is a lot of fear that Mamdani will go after the plaintiffs,” Garcia said.
