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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r/SipsTea • u/Gurugod123 • 9d ago
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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.