The People’s Boondoggle: Mamdani’s $30 Million Taxpayer-Funded Supermarket, by the Numbers

Experts think it's a bad idea—for obvious reasons

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New York City mayor Zohran Mamdani recently unveiled his plan to build a massive government-run grocery store in Manhattan. Most self-respecting experts think it's a terrible idea—for obvious reasons. Rooted in the failed tenets of communism, the taxpayer-funded supermarket was a central component of Mamdani's campaign platform. So it's going to be pretty embarrassing when the project inevitably devolves into yet another bureaucratic boondoggle.

Here is everything you need to know:

When will it open? Mamdani wants to have five city-run stores operating by the end of his first term in 2029. The project he outlined over the weekend—the first to be formally announced—will take about three years to complete because it's being built from scratch.

How much will it cost to build? $30 million.

How much will it actually cost? Almost certainly more than that, given the reliability of government estimates. It's worth noting that industry experts told the New York Post that $30 million is about three times what it would typically cost to build a supermarket from the ground up. "Even a high end, gourmet store in the middle of Manhattan wouldn’t cost that much to build," said Anthony Pena, president of the National Supermarket Association.

Can the city afford it? Not really. Mamdani has until July 1 to resolve a $5.4 billion deficit.

How much will it cost to run? Mamdani has said each store—which won't have to pay rent or property taxes—would cost about $12 million annually to operate.

How much will it actually cost to run? Food policy experts estimate that operating the stores at "good union labor rates" would require at least $20 million annually per store.

Where are they building it? Not in Midtown Manhattan, obviously. The first city-run supermarket will be located on what is now an empty lot in East Harlem at 116th Street and Park Avenue. The New York Times described the neighborhood as a "diverse community with high poverty rates."

Is that a good location for a government supermarket? Not really. One of Mamdani's stated aims was to combat "food deserts" where grocery options are limited. There are five grocery stores within a two-block radius of the proposed building site, though they will struggle to compete with a taxpayer-subsidized venture that is immune to rising property tax rates. It will also compete with local vendors at the nearby La Marqueta complex.

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