Updated
Updated · Business Insider · Aug 3
Friedberg Says NYC's 5 City-Run Groceries Will Outperform Private Chains on 30% Discounts
Updated
Updated · Business Insider · Aug 3

Friedberg Says NYC's 5 City-Run Groceries Will Outperform Private Chains on 30% Discounts

2 articles · Updated · Business Insider · Aug 3

Summary

  • David Friedberg said New York’s planned city-run grocery stores are likely to succeed in the near term, arguing critics are wrong to assume they will “radically fail.”
  • Five stores—one per borough—are backed by $70 million, with Mamdani promising roughly 30% discounts on staple items such as produce, meat and dairy; the first Bronx site is due in 2027.
  • Friedberg said those subsidies will make the stores more attractive than chains like Whole Foods, Safeway and Albertsons, potentially driving strong demand over the next 24 months.
  • He argued the popularity would mask longer-term costs, warning the model could spread to other U.S. cities and fuel broader support for socialist policies even as 55% of Americans say they would not back a democratic socialist for president.

Insights

Will NYC's 30% discount grocery experiment destroy local bodegas, or become the new standard for urban food access?
Could opening tax-free, city-run supermarkets actually cost taxpayers more than simply handing out direct food assistance?