
A coalition of 50 chambers of commerce is preparing antitrust and tort claims over Mayor Mamdani's $70M plan for five city-owned supermarkets offering 30% discounts; lawsuit could come this week.
A coalition of immigrant-owned grocers plans to sue New York City as soon as this week over Mayor Zohran Mamdani's proposal to open government-owned supermarkets, according to a letter obtained by The New York Post.
The Multicultural Business Coalition, representing 50 chambers of commerce from Asian, African, Caribbean, Hispanic, Middle Eastern and Jewish-owned businesses, sent a last-ditch letter to City Hall on Wednesday. The group's president, Kenneth Roldan, said the coalition has prepared multiple versions of the lawsuit.
"We are at the 11th hour – we have multiple versions of the lawsuits that have been prepared," Roldan told The Post. "The federal case will be based on antitrust and predatory pricing. The state cause of action will be tortious interference and possibly discriminatory practices by the administration."
The city's plan calls for five government-owned supermarkets that would not pay rent or taxes. Operators would offer 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 roughly 15% off their bill. Nearly $40 million has been earmarked for the first two locations, in Harlem and the Bronx at Hunts Point. The remaining three sites have not been confirmed. The city issued a request for proposals and is seeking operators, with bids due Oct. 16.
The coalition's letter said the RFP "demonstrates a lack of understanding of the supermarket industry and raises questions about the efficacy of the plan." It warned that city-owned grocers "could paralyze their operations, reduce their slim profit margins or even force some out of business entirely."
Mark Jaffe, legal counsel to the group and president of the Greater New York Chamber of Commerce, said the coalition wants to avoid litigation but will act if the city does not engage. "We are asking the mayor to avoid litigation to sit down with us," Jaffe told The Post. "But we have to try to stop this if they won't listen to us."
The coalition first requested meetings with City Hall in May 2026 and has not received a response, Roldan said. The group is still deciding whether to file in state court, federal court, or both.
Frank Garcia, the coalition's chairman, said potential plaintiffs fear retaliation from city officials. "There is a lot of fear that Mamdani will go after the plaintiffs," Garcia said.
The lawsuit could come before the Oct. 16 bid deadline.
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