NEW YORK, NY— Five municipal grocery stores will offer 30 percent discounts on fresh produce, meat, seafood and other everyday staples, Mayor Zohran Mamdani announced on Monday.
The stores will offer a 30 percent discount on a core basket of essential items, including all fresh produce, meat and seafood, along with about 20 additional categories of pantry staples, dairy products and refrigerated goods.
The discount will apply to all shoppers regardless of income.
The savings are projected to reduce the average grocery bill by about 15 percent, or roughly $90 a month and $1,000 a year.
"Every week, New Yorkers walk into a grocery store hoping the prices haven't gone up again," Mamdani said. "A trip to the grocery store shouldn't spell dread for New Yorkers."
The initiative, called N.Y.C. Groceries: A Recipe for Affordability, is a central part of the administration's affordability agenda and aims to address rising food costs across the five boroughs.
Grocery prices have increased sharply in recent years, putting pressure on household budgets.
Nearly 80 percent of New Yorkers are concerned about rising food prices, while more than 40 percent of families struggle to afford food, according to the City's survey.
The first municipal grocery store is expected to open by the end of 2027 in Hunts Point, Bronx, a neighborhood where city officials said 77 percent of households struggle to afford basic necessities.
The administration plans to open five locations, one in each borough, by the end of the mayor's first term.
Another planned location is La Marqueta in East Harlem.
The 9,000-square-foot store will be constructed from the ground up and is expected to open by 2029.
The stores will operate differently from traditional supermarkets.
The City will set affordability standards, product requirements and operating guidelines, while private grocery operators will manage daily operations.
Selected operators will oversee:
The City also plans to explore an N.Y.C. Groceries private-label brand across multiple product categories.
Unlike traditional supermarkets, where prices can change frequently, N.Y.C. Groceries will require operators to maintain consistent pricing on core items.
The City will choose private companies to run the stores through a request for proposals issued by the New York City Economic Development Corporation.
Operators will be responsible for creating supply chains that keep costs low while meeting requirements for product availability and quality.
"The City sets the mission, the standards and the store design; experienced third-party operators run the stores day to day under those requirements," officials wrote in the program outline.
The City is seeking grocery companies and experienced operators to manage one or more locations.
The selected operators must provide:
Responses to the operator request for proposals are due Oct. 16, 2026.
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