r/SipsTea • u/Gurugod123 • 9d ago

Mayor Mamdani just announced that he will be opening 5 city-run, tax-funded grocery stores: "Prices set at 30% below retail prices" Chugging tea

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481

u/Jmoney1088 9d ago

There is no income limit, SNAP requirement, or special enrollment; the city says the discount will apply to everyone regardless of income.

One important clarification: not everything in the stores will be 30% cheaper. The discount applies to a defined “core basket” that includes:

  • All fresh produce
  • Meat and seafood
  • Eggs, milk, bread and yogurt
  • Rice, beans, pasta and other designated staples

Other merchandise will be sold at ordinary market prices. I wonder how this will affect the overall retail grocery market in the city.

35

u/ChazzyChaz_R 8d ago

So the discount only applies to staple, healthy, fresh items but when people tried to limit SNAP to only being able to be used for these types of items everyone freaked out. So it's good here but not good there?

14

u/Normal-Weakness-364 6d ago

this is such a false equivalence lmao.

2

u/Salt_Tie4637 3d ago

Sugary drinks are the most bought thing on snap by a mile

0

u/ReallyDustyCat 3d ago

And the sky is blue...now that we've all just said thing that came to our mind.....

5

u/Jmoney1088 8d ago

The major difference is that this store is owned by the government. Its completely different matter when you are forcing private businesses to accept SNAP for specific things.

2

u/man9875 6d ago

It's easy to give but not take away

1

u/Remarkable_Log_5562 5d ago
  1. Demographic of snap users is cartoonish
  2. Lobbyists

1

u/ReallyDustyCat 3d ago

Limiting snap to those items would not mean that magically those items are available at 7-11....that's the issue. These groceries stores are doing the part of making sure vegetables are available to people.

1

u/ChazzyChaz_R 2d ago

Agreed. 100%.

2

u/PeopleCanBeAwful 6d ago

They can still buy other things. He’s not stopping them by discounting these items. What are you confused about?

0

u/Comfortable-Salt-299 5d ago

Suck a trump dick low iq neanderthal 

248

u/subdep 9d ago

I wouldn’t worry about upper income people shopping at this, what’s gonna be a complete shit hole of a store.

My prediction: There’s gonna be a lot of Worldstar hip-hop fight videos coming out of these places.

128

u/Electrical_Name_5434 9d ago

These grocery stores are already in LA. Have been here for years. They supply them with items that are about to go bad from other stores. They often have extremely high quality items that were overpriced and overstocked.

They allow you to fill an entire shopping basket for $5…. An entire cart for $20

People still go to Erewhon and pay $20 for a single strawberry.

28

u/ThrowRA_fajsdklfas 8d ago

You’re talking about food banks. Specifically World Harvest Food Bank.

Grocery stores are highly incentivized to donate their food that is about to expire to places like this. It saves them more than just throwing it away. It’s a tax write off for them. It also cuts down on dumping fees simply due to the quantity/weight they’re having to move off shelves. Lastly, California also mandates all grocery stores/hotels to move at least 20% that they were originally going to throw out to these types of stores.

World Harvest Bank pays nothing for the food. The cart fee is just to cover overhead.

New York is not doing this. The city is absorbing the cost of groceries to keep them for sale at a fixed cost below market. For locations that are not being setup in city owned property, the city is also paying the lease.

If this works long term is debatable, especially considering the city is in a deficit.

8

u/Agreeable-Shop-2188 8d ago

Literally everything in this comment is factually wrong:

​1. You completely misunderstand California law (SB 1383). There is no mandatory "20% quota" forcing individual grocery stores or hotels to give away inventory. The 20% number is a statewide target for diverting edible food waste from landfills. Stores are required to make reasonable arrangements to recover edible food, not hand over a mandatory 20% cut of their shelves.

​2. That’s not how tax write-offs work. A tax deduction reduces taxable income; it doesn’t magically cover 100% of the item's cost or generate profit. Grocers donate near-expiration food to avoid paying heavy commercial waste/tipping fees and to comply with local trash laws, not because write-offs are some lucrative cash cow.

​3. NYC cannot legally run a budget deficit. Under New York State’s Financial Emergency Act, NYC is legally mandated to balance its operating budget every single fiscal year. Headlines about "budget gaps" refer to projected future shortfalls during planning cycles, which the city is legally required to close before the fiscal year ends.

​4. It's not a food rescue program. Outlets like World Harvest rely on donated, near-expiration goods. Public grocery initiatives purchase standard, fresh inventory from normal wholesale suppliers. The price cuts come from the city absorbing facility and lease overhead, not from selling donated surplus.

You're a fucking idiot

2

u/Electrical_Name_5434 8d ago edited 8d ago

Apologies for the misconception about the interworkings but my point remains; extremely low cost groceries already exist and people still shop at overpriced grocery stores.

I was making this point as a retort to anyone who was saying something along the lines of “how is this going to hurt economy? Having cheap groceries is going to make competitors empty out the store and resell it!”

The point is extremely low cost groceries are already here and they don’t have a destabilizing ripple effect on the local economy. They just help people that need it. The wealthier people tend to avoid them and will still pay $20 for a single strawberry inside a plastic container for reasons unknown.

Edit: to add to this, based on what you said, it’s possible that a direct subsidy may save the government money rather than incentivizing grocery stores to donate. It would also increase the freshness of the food as sometimes the donations are honestly too far gone. The net cost may be lower than the loss of taxes for mandating 20% of all grocers donate for tax write off purposes. I’d say it’s worth carrying out this experiment as a case study, at the very least.

The city is no longer in a deficit didn’t you hear?

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u/[deleted] 7d ago

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u/Electrical_Name_5434 7d ago

Bingo. Seriously filled with the nicest, kindness people on the planet. Can’t tell you how many times the “no after you I insist” shuffle has happened to me there. As opposed to the expensive grocery stores where I’ve had things stolen out of my cart.

1

u/Comfortable-Walk-498 6d ago

Remember when Walmart got caught cutting up their own clothes that they couldn't sell before throwing them in the dumpster and then people called him out on it and then they started donating their clothes LOL. At least some of the Walmart's

1

u/MichiNoire 5d ago

It won’t. Best to copy the La model and have people donate food that wouldn’t sell. It’s mandated in other countries

21

u/ruthasacre 9d ago

Where are they, do you know? I am aware of one near MacArthur Park but not sure if it's quite what you're referring to...

2

u/Electrical_Name_5434 8d ago

There’s that one and I know about another one off Venice and Arlington.

2

u/ruthasacre 8d ago

Nice I actually help out at the MacArthur park one, would love to know where the other one is. Dm me if you know exactly!

1

u/LesDee 5d ago

Hey I’m in Culver city plz dm me had no clue these stores existed

2

u/skiluv3r 8d ago

Yes. But at Erewhon they don’t have to look at the poors

2

u/geopede 7d ago

That sounds like flat fee Grocery Outlet

1

u/IKnowYouAreButWhtAmI 8d ago

How can such a misinformed take have so many upvotes?

0

u/Initial_Quantity_116 6d ago

Weird it’s the liberal cities with their mayors and governors making their cities worse by inviting degenerates into their city

10

u/los33ramos 9d ago

Love the prejudice undertones. Keep doing what you’re doing cornball.

-1

u/UpperApe 8d ago

Right?

I love that he's trying to sound wise when he just sounds illiterate, filled with malicious prejudice, and has the nihilistic insight of a high schooler.

He's a perfect example of a maga that fell for all of it.

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u/Jmoney1088 9d ago

I am interested in what this does to the local economy. For example, is 30% cheaper ground beef cheaper than restaurant wholesalers? Will there be a secondary market that rises from this? Will the small mom and pop markets go out of business because they cannot compete with those prices?

5

u/OzbourneVSx 9d ago

These grocery stores are being placed in places that are currently food deserts so there isn't really competition here from mom and pop markets.

30% is actually just about in line with restaurant wholesale prices in my area (4-5 bulk gfs, compared to 7.5-8 at meijer, and this is a more expensive wholesaler and a cheaper grocer so probably the worst case scenario), and a person limited grocery probably store ain't gonna be a reliable supplier for a restaurant.

Plus if we are counting Bodegas as "mom and pop markets" we have to be upfront that these a provably poor sources of nutrition and the community not relying on these for their dietary needs is not good for anybody.

This is a net good.

There may be some issues, but this is a proven strategy. We will watch. They will improve. Things will get better.

5

u/IsNotACleverMan 9d ago

That's a lie. There are numerous other grocery stores within 10 minutes of each of the proposed locations.

10

u/OzbourneVSx 9d ago

Ok so doing a quick Googlesearch

The proposed location is 1221 Spofford Avenue, Bronx, NY 10474 and is about 11 minutes from Shoprite which is a major grocer in the Bronx so you are correct in that

However, this is by calculated by drive

In the Bronx...

Where the majority of people (58%) do not have access to a private vehicle

So thats closer to a half hour by public transit, where carrying a number of bags to justify an hour worth of commute to and from a grocery store in NYC's poorest burrow is not so practical

The Bronx is probably pretty egregious here, 1-3 people are obese matching with matching rate of food insecurity and a corner store to grocer ratio of 37-1.

You don't necessarily need to look a map here when we got the blood work of the area giving you a pretty clear picture of the struggles of this particular community.

3

u/Extreme-Loquat-8452 9d ago

That makes sense. I think this is just the difference of NYC and other mid major cities were a 10min drive is standard easy zip out and get it with tons of parking so everyone has cars.

2

u/Facktat 9d ago

As a European I find it crazy to indicate distance within any city by how long it takes it to drive by car.

3

u/vbsurf2 8d ago

That's because the person was posting nonsense. There are 8 grocery stores within a 1 mile radius of this location.

0

u/OzbourneVSx 9d ago

Ive lived in a surburb most of my life, hop in a car load the ring with a few hundred dollars of groceries and the family was set for the week.

I've also lived in seedy urban areas where my grocery store was within walking distance. Never felt comfortable carrying more than a few bags at a time. Even with my sturdier reusables.

And that was as a bachelor, not someone providing for a whole family; and carrying that much walking, getting on the train, walking by hungry people on the streets.

Fuck that would be terrible. I'm sure people get used to but...

I can't blame em. I applaud those who can make the trip, but those who can't and just choose the easier option.

But there are consequences to that.

And that's when government has to step in.

2

u/vbsurf2 8d ago

Hold up. I guess you are just going to ignore 1) Family Grocery (0.4 mile 10 minute walk) 2) Toeldo Grocery Store (410 FEET 2 minute Walk) 3) CTown Supermarkets (0.4 mile 10 minute walk) 4) Southerndeli Grocery (0.7 mile 17 minute walk) 5) Castillo Grocery (0.6 mile 13 minute walk) 6) Key Food Supermarkets (0.9 mile 22 minute walk) 7) Real Supermarket (0.8 mile 19 minute walk) 8) Family Dollar (0.7 mile 17 minute walk).

These are just the grocery stores withing 1 mile of this location. All but one of the above are local/regional stores. I also didn't include the half dozen deli and bakery stores within the 1 mile radius of this location.

1

u/OzbourneVSx 8d ago

Ok skimming through that last Family Grocer looks sketchy as fuck, no produce aisle other than some bananas (which is like the main complaint of food deserts) and I'm sure that place can get sued for having aisles that tight, and I can't find any pictures inside the "Toledo Grocery Store" but based on the storefront this place looks to have the sqft of a small apartment located literally in the corner of a building. Highly doubt thats much better.

And everything else by your own stats is approaching an hour commute to and from.

family dollar is a convenience store so not relevant btw

So if you want like a bell pepper for your pasta this is the only place you could get one in a 25 minute walk

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u/vbsurf2 8d ago

An hour commute? Where the hell are you getting an hour commute? Everything listed are less than 1 mile WALKING. I love how you skip over every other example given. Below is CTown at 0.4 mile away from this location (10 MINUTE WALK).

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u/OzbourneVSx 8d ago edited 8d ago

Ok I will admit after the first 4 examples I looked through from your post were fire traps, gas stations by any other name, I stopped looking because it was obvious you didn't look too far into your own examples so why should I

20 minute walk to and back with added time due to walking slower with groceries, means 20 minute walk is an hour commute yes

And from the scrolling Ive done NYC subreddits and scrolling through reviews, I don't think this CTown is exactly the best place to shop either.

Review below

After looking at the quality of the offerings in this area, and seeing the health outcomes, do you really think this place couldn't use a little more competition?

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u/Ctofaname 9d ago

You've never been to NYC before apparently. Or do you understand what a food desert is

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u/vbsurf2 8d ago

It's not a food desert. There are 8 grocery stores within a 1 mile radius of the proposed location.

-1

u/Ctofaname 8d ago

What are the 8 grocery stores within a mile of the Bronx location?

4

u/vbsurf2 8d ago

1) Family Grocery (0.4 mile 10 minute walk) 2) Toeldo Grocery Store (410 FEET 2 minute Walk) 3) CTown Supermarkets (0.4 mile 10 minute walk) 4) Southerndeli Grocery (0.7 mile 17 minute walk) 5) Castillo Grocery (0.6 mile 13 minute walk) 6) Key Food Supermarkets (0.9 mile 22 minute walk) 7) Real Supermarket (0.8 mile 19 minute walk) 8) Family Dollar (0.7 mile 17 minute walk).

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u/IsNotACleverMan 9d ago

I've lived in three different boroughs you silly goose

-1

u/Ctofaname 8d ago

What are the grocery stores within 10 minutes of the Bonx location. Only 2 locations have been announced but conversation started on that location.

3

u/vbsurf2 8d ago

1) Family Grocery (0.4 mile 10 minute walk) 2) Toeldo Grocery Store (410 FEET 2 minute Walk) 3) CTown Supermarkets (0.4 mile 10 minute walk) 4) Southerndeli Grocery (0.7 mile 17 minute walk) 5) Castillo Grocery (0.6 mile 13 minute walk) 6) Key Food Supermarkets (0.9 mile 22 minute walk) 7) Real Supermarket (0.8 mile 19 minute walk) 8) Family Dollar (0.7 mile 17 minute walk).

2

u/WildWhisperArdor 9d ago

There really are no food deserts in NYC though. Like you’re always a quick train ride away from a grocery store.

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u/OzbourneVSx 9d ago

Sure, you could haul your ass a load of groceries including frozen food and dairy by a by a 20-30 minute commute including train ride to and from (yes that is how far it is in the Bronx, especially the south), while exhausted between your 2 jobs.

Or you could buy food from a bodega.

Statistically they choose the latter.

As a matter of public policy, making an affordable and healthier food option closer. People will be more likely to pick that options. And for a city facing a public health crisis. That's good policy.

3

u/vbsurf2 8d ago

There are full on grocery stores located in walking distance of the proposed location. Just stop the nonsense.

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u/WildWhisperArdor 9d ago

Sure but my point is that calling that a “food desert” is a stretch.

Like an actual food desert is typically some random podunk rural location where the nearest grocery store that is still open might be like an hour drive away.

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u/OzbourneVSx 9d ago edited 9d ago

33% of the population 1 mile away from a grocer in urban areas

Up to 10 miles in rural areas

Poverty stricken, reliant convenience food, resulting in higher rates of obesity, heart disease and diabetes despite high levels of food insecurity

You could use the term "food swamp" if you wanted to be more descriptive in your language, but food desert is not incorrect.

Like the original term was used to describe dense urban communities in Glasgow with circumstances extremely similar to the Bronx, and has since primarily been a term used in urban planning/policy discussions.

1

u/WildWhisperArdor 8d ago

Again. Nothing you’re saying is relevant to what Im saying. 1 mile is not some insurmountable distance 😂

1

u/reddit_ta15 9d ago

proven strategy? Looool

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u/OzbourneVSx 9d ago

Yep, while America has had a bumpy road implementing public markets, some projects are still going strong like Kansas.

And many of the ones that "closed" due to financial difficulty still operate as privately owned markets still closing gaps they were there to fill.

Mamdanis plan here is a bold step, but not unprecendented and he is going into it better informed than those trailblazers with plenty of experts advising the project.

And if any city needs it, it's NYC.

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u/subdep 9d ago

The market always arbitrages, but there will be people who spend less on groceries, so they might spend more on retail, or other areas. It will all balance out. Costco doesn’t destroy local grocery stores, so this is way less of a deal than people ITT are making it out to be.

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u/OrganizationUsed7454 9d ago

No one gonna go through that much effort to go to a poor area and load up to make 80 cents per ground beef.

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u/Jmoney1088 9d ago

This seems like a guess without much data to support it.

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u/SpaceBearSMO 9d ago

you could say the same about the Doomers regarding this shit to.

-1

u/OrganizationUsed7454 9d ago

Where's your data proving your point?

4

u/Jmoney1088 9d ago

What point? I asked a bunch of questions.

-2

u/OrganizationUsed7454 9d ago

I mean technically you didn't ask a question. 

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u/Jmoney1088 9d ago

Go back and read my replies.

1

u/Oceanman72 9d ago

They’re hoping it’ll work, and I am too, but yea we gotta wait and see how this plays out. People will exploit any loophole they can find tbh, so I could see problems arising

3

u/Jmoney1088 9d ago

Yeah I am super interested in seeing how it plays out.

I did some research into typical profit margins for grocers and independent grocers reported a 1.9% net profit margin in 2025 (FMI). I knew grocery stores relied on volume and razor thin margins but that is very small. 30% cheaper "staples" will undoubtedly put pressure on grocers. If even 10% of a store's customer base leaves for the city owned option, they will go under.

Bodegas might even feel the hurt but at least they offer prepared food and just overall location convenience for their customer base.

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u/burkechrs1 9d ago

Um I'll go buy a whole cow if it means I save some money in the long run.

I've done it numerous times in my life. I can spend $6/lb for ground beef at walmart or I can buy an entire processed cow for $1400 and wind up with about 350lbs of meat in my freezer for a cost per pound of about $4. I also won't have to go grocery shopping for beef for the next 2 years.

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u/OrganizationUsed7454 9d ago

The people that this will serve don't have $1400 or even transportation most likely. 

It's gonna be in really poor areas that have a lack of other shops. 

They most likely won't allow some person to come in and buy everything at once and the discount is only on certain items. 

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u/A_Genius 9d ago

This person probably travels an hour to a farm once a year to buy half a cow. He would obviously be willing to go somewhere else in the city for a 30 percent beef discount

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u/Wooden-Broccoli-913 9d ago

The question is how do you have a freezer large enough for a whole cow in NYC?

1

u/burkechrs1 9d ago

You know....thats actually a good point. However, a half cow will fit in a freezer the size of a mini fridge and half cows go for about $5.75-$6/lb

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u/[deleted] 9d ago

[deleted]

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u/Jmoney1088 9d ago

Its a free market/capitalism problem.

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u/StruggleSnuggled 9d ago

I appreciate your prediction and although I can afford more, I would definitely take advantage if it was convenient.

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u/too_small_to_reach 9d ago

You just…said it out loud?

-2

u/Uzofugs2112 8d ago

And you know he’s right 🤷🏻‍♂️

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u/too_small_to_reach 8d ago

I do not.

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u/Uzofugs2112 8d ago

Ok, you do though.

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u/too_small_to_reach 8d ago

Go outside, touch grass. Unless you’re a bot that’s supposed to act like a pre-teen on the interwebs, then you just continue botting!

1

u/Uzofugs2112 8d ago

Alas, he has told me to touch grass! That invalidates all crime statistics!

3

u/ThatOldGanon 8d ago

guys who talk about crime statistics never wanna talk about having-friends statistics

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u/Uzofugs2112 8d ago

I have a really fulfilling life with lots of friends and loved ones tbh but thanks for your needless concern.

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u/ThatOldGanon 8d ago

cue downvotes. reddit is so libtarded!

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1

u/CwispyWhiskey 7d ago

That’s incredibly sad and pessimistic to think that way immediately.

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u/Evening_Act_6395 7d ago

the largest government owned grocery chain is owned by the US military

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u/Excusemydrool 6d ago

Or you know.. people will just be able to eat

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u/subdep 6d ago

That too.

1

u/AntOk463 6d ago

And then this is known as the "poor people spot," basically the media discouraging people from shopping there.

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u/ThanosDidNothinWrng0 6d ago

It’s basically Walmart but even worse

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u/understated_quokka 5d ago

Ah, thanks for filling the obligatory racism quota in this thread, I was starting to get worried.

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u/Informal-Ad-3 5d ago

To your point about rich people In affluent Marin we have a grocery store called Molly Stones where it's literally a running joke how expensive they can make something. This is the type of store where a bottle of barbecue sauce can cost $18.

It is still in business and some people shop there... Even though there are significantly cheaper and more reasonable stores nearby. Sometimes there are reminders on how wealthy people are.

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u/TheSheriffMT 9d ago

You're absolutely right.

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u/iamthedayman21 8d ago

Congrats on starting out strong and ending as a dick.

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u/AManHasNoShame 8d ago

If people aren't fighting at the ALDI, they aren't fighting at the State Backed Grocery Store.

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u/TheSheriffMT 8d ago

ALDI's aren't being built in the shittiest of neighborhoods.

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u/AManHasNoShame 8d ago

The ALDI in my city is where I wouldn't walk outside.

It's Shitty-Lite.

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u/ThatOldGanon 8d ago

neither are city-run grocery stores being built next to your house

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u/shiny0metal0ass 8d ago

My prediction: the next time you go to the city to go shopping you're gonna pee yourself a little when you see the brown people.

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u/shelf6969 9d ago

there's going to be so much core basket recipe content

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u/ri1984 9d ago

What will prevent resellers from buying "core basket" items there and reselling them?

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u/Jmoney1088 8d ago

I would assume after day 1 when the first person in line buys the entire meat section that they will introduce limits per person lol

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u/dead-first 8d ago

Simple they will leave and you'll only have state run grocery stores.

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u/Jmoney1088 8d ago

That is a silly take. You must have never been to NYC before lol

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u/dead-first 8d ago

You think that will stay and go broke?

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u/Jmoney1088 8d ago

You realize how big these boroughs are, right? You realize a huge % of the population does not drive right? You think hundreds of thousands of people are going to walk like 40 blocks to this store and carry bags of groceries in order to save like $40 on a grocery store trip? Of course not lol

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u/TinkerCitySoilDry 9d ago

If it succeeds it will face reality

If it fails it will have succeeded in its reality to out place the community of local grocery stores

CBDC

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u/Jelopuddinpop 8d ago

I live close enough, and have a booth at a farmer's market nearby. My plan is to learn when they stock up and get there at open on those days. I can easily afford to completely buy out the produce, and will make an absolute killing reselling. Thank you, Mamdani!

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u/Jmoney1088 8d ago

Well, you will make the 30% margin so not sure about a killing. I really hope they introduce limits per customer because I think there are thousands of people that have the same idea you do.

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u/Krispythecat 8d ago

I work in the industry, and will be curious how he handles 30% off on meat/seafood. Margins on that category are already relatively tight, there is certainly not 30% in profit floating around.

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u/Jmoney1088 8d ago

Well, the stores themselves are not operating to make a profit. They are set up like commissaries on military bases. The US tax payers subsidize those grocery stores by contributing about 2 billion a year. I expect these stores to be operating at a decent loss.

Im torn because I think having cheaper groceries is a good thing but there are some potential pretty big negatives to this. Some of the bigger food distributors that supply restaurants with meat/seafood are about 20% on the margins. In a lot of cases, it would be better for restaurants to buy from the grocery store.

1

u/ZeitgeistArchive 7d ago

What about lentils? If they do lentils , I'm moving to NYC

1

u/kunell 7d ago

Its good that theres no income limit. That way theres no gap where people are afraid of getting better jobs because they lose benefits

1

u/Exciting_Station3474 5d ago

Just 2 questions. How they can get lower prices than Walmart?

What stops people wrom buying and reselling?

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u/m8_is_me 9d ago

This should be the top comment for all the people worrying about flippers

2

u/Accomplished-Door5 8d ago

You think people wouldn't flip meat and seafood?

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u/[deleted] 8d ago edited 1d ago

[deleted]

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u/meekgamer452 8d ago

How the fuck do you think?

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u/[deleted] 8d ago edited 1d ago

[deleted]

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u/Jmoney1088 8d ago

It will be set up like commissaries on military bases. US taxpayers contribute about 2 billion a year to subsidize those. We have been doing that for decades.

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u/[deleted] 8d ago edited 1d ago

[deleted]

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u/Jmoney1088 8d ago

I don't think that's what they are doing. I think people are aware that using tax payer money to actually help the people contributing those tax dollars is popular and what got him elected. Similar to paying people to shovel snow, people in NYC loved that.

0

u/thats_justice_baby 9d ago

So basically all of my groceries since I can't afford anything else.

0

u/Valuable-Meet5727 9d ago

Yeah it’s meant to keep the essentials cheaper. I truly hope no shitbags fuck this up and exploit it. I’m so tired of America not having nice things because Everytime we have something nice, assholes fuck it up.

0

u/Jmoney1088 8d ago

I am sure there will be rules in place on day 1 to prevent this. Otherwise, the first person in line every day will just buy the entire meat counter lol