Updated
Updated · Fox News · Aug 5
Rulli Blasts NYC's $70 Million Grocery Plan, Predicting 5 Stores Fail Within 5 Years
Updated
Updated · Fox News · Aug 5

Rulli Blasts NYC's $70 Million Grocery Plan, Predicting 5 Stores Fail Within 5 Years

1 articles · Updated · Fox News · Aug 5

Summary

  • Mike Rulli, an Ohio Republican from a grocery-owning family, said New York City's planned municipal supermarkets would "bleed red" and may not survive even a year, let alone five.
  • The criticism targets Mayor Zohran Mamdani's $70 million plan to build 1 city-run store in each of the 5 boroughs by 2030, with monthly prices on core goods set 30% below typical retail levels.
  • Rulli argued that grocery economics make the model unsustainable, saying stores run on roughly 27% gross margins and only about 1.25% to 1.5% net margins after expenses.
  • He said the subsidized stores would undercut hundreds of small groceries — many immigrant-owned — while shifting operating losses onto taxpayers.
  • The plan has won progressive support but drawn business opposition, with the Multicultural Business Coalition reportedly threatening a lawsuit.

Insights

Could New York's 70 million dollar plan to slash grocery prices actually force your favorite neighborhood bodega out of business?
If similar city-funded grocery stores failed in Chicago, what secret strategy does New York have to keep its subsidized supermarkets afloat?
Why are economists warning that government-funded supermarkets might ultimately worsen urban food deserts instead of solving them?