A former grocer is challenging New York City Mayor Zohran Mamdani’s plan to establish government-run grocery stores, warning it could devastate numerous small businesses. Rep. Mike Rulli, R-Ohio, expressed his concerns to Fox News Digital, emphasizing that the venture would consistently operate at a loss.
“That supermarket will just bleed red the entire time it’s open, from the first time you turn the key until it closes,” Rulli stated. “And I would bet the farm there’s no way these grocery stores last more than five years — they might not even last a year.”
Rulli’s perspective stems from his family’s experience with their Ohio-based grocery chain, Rulli Brothers, currently managed by his brothers. This background grants him insight into the difficulties small business owners face, especially in New York City.
Mayor Zohran Mamdani, a Democratic socialist, proposed this plan during his campaign. The initiative involves a $70 million city investment to build one grocery store per borough, with all five expected to launch by 2030. The mayor has promised that once a month, these stores will offer a selection of goods priced 30% below common retail prices.
Though the concept has garnered support from progressives, business groups like the Multicultural Business Coalition have expressed opposition, with the New York Post reporting potential legal actions against Mamdani.
Rulli, highlighting the thin profit margins in the grocery industry, explained that Mamdani’s plan would likely result in continuous financial losses. He pointed out that grocery stores typically operate with a gross of about 27%, leaving a net of roughly 1-1.5% after expenses.
Ultimately, Rulli labeled the initiative as a decision that could unfairly burden taxpayers.
Elizabeth Elkind contributes political reporting for Fox News Digital, focusing on the House of Representatives. Her writing has appeared in outlets such as Daily Mail and CBS News.
Leave a Reply