Small store owners are suing the New York City mayor over his plan to open municipal supermarkets.

A nonprofit representing hundreds of small supermarket, bodega, and grocery store owners in New York City has filed a lawsuit against Mayor Zohran Mamdani and city officials. The plaintiffs are demanding a halt to the plan to open five municipal grocery stores, according to CNN.

The Multicultural Business Coalition, which represents small business owners, filed a class action lawsuit in New York County Supreme Court on August 24.

The plaintiffs claim that the plan Mamdani violates the civil rights of small grocery stores owned by minorities. They say such stores will be unable to compete with municipal supermarkets.

Urban the shops will be able to offer discounts that small businesses are unable to provide.

"You can't expect hardworking small business owners to compete with a supermarket that doesn't have to pay rent, pay electric bills, or buy items at full price," said Mark Jaffe, the group's general counsel and president of the Greater New York Chamber of Commerce.

"They simply won't be able to compete because no one will subsidize them," he added.

Mamdani is confident in the plan's legality

At a press conference on August 24, Mamdani said he was confident in the legality and importance of his plan.

"We're talking about opening five city-run grocery stores in a city of 8,5 million people that has more than 1,000 grocery stores," Mamdani said.

He also noted that two markets in Manhattan and Brooklyn that operate under a similar model have not had a negative impact on nearby bodegas.

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These markets have been operating for many years and are managed by the New York City Economic Development Corporation.

The organization leases city properties to private sellers at below-market rates and covers other operating expenses.

This is already the third lawsuit

This is at least the third time that one of the Mamdani administration's key proposals to improve affordability has faced a lawsuit.

Earlier this month, a group of homeowners filed a lawsuit to stop the second-home tax. A Staten Island judge temporarily blocked the measure.

Additionally, landlords have filed a lawsuit against the rent freeze. The freeze affects one- and two-year leases for approximately 1 million rent-regulated apartments.

Products are 30% cheaper than the market price

Mamdani's plan to open grocery stores is a key part of his cost-of-living program.

Its goal is to provide affordable and healthy food options to New Yorkers facing rising food prices.

At the same time, stores will be open to everyone.

The plan also calls for increased access to fresh vegetables, fruits, and basic food products. In some areas of the city, over 30% of residents lack stable access to sufficient food.

Mamdani said stores would sell a "set of essential items" at a 30% discount off market prices.

The mayor's office estimates the program will reduce New Yorkers' average grocery bills by 15%, or about $90 per month.

Plaintiffs compared the threat to the arrival of Walmart

The lawsuit claims that Mamdani's plan poses a threat to small businesses comparable to what would happen if Walmart were allowed to operate in New York City. Local officials have long opposed the retailer's entry into the city.

The plaintiffs also claim the city failed to conduct a full analysis of how the municipal stores would impact local businesses.

According to them, city authorities arbitrarily selected locations for future supermarkets and did not study the needs of specific areas.

The first store will open in the Bronx.

The first of five stores is scheduled to open next year in the Hunts Point neighborhood of the Bronx. The remaining stores are expected to open by 2030.

Mark Jaffe said the store owners hope the city will listen to them and try to reach an agreement.

"There's a more efficient way to get food to struggling New Yorkers," Jaffe said.

"We haven't seen any business plan. This is simply a show store that will allow the mayor to claim he's fulfilled his campaign promise. Therefore, we're asking the judge to stop this plan," he added.

The Mamdani administration has already allocated $70 million for the opening of stores. City officials are also soliciting proposals from external operators to manage these stores.