Here's More Proof That Mamdani's Government-Run Grocery Stores Are a Disaster Waiting to Happen

New York City Mayor Zohran Mamdani rolled out his plans to open government-run grocery stores in his city, a plan that has been repeatedly tried elsewhere and failed. Bodega owners and other stores are warning that the plan, which would see the government-run stores subsidize groceries at 30 percent less than private stores, would doom their businesses and that when the government stores go belly-up, New Yorkers will be left with no options for food.

Bread lines, of course, will be next.

But here's more proof that the entire plan is a disaster and so complex, contradictory, and confusing that the whole project may crash on the launch pad. Why? This is just the Request for Proposals (RFP) from operators who would run the government stores.

I downloaded and reviewed NYC's grocery store RFP... as someone who has built biz's and bought a lot of food... wow.

Forget for a moment whether or not the govt should own a grocery store. Let's review the doc instead.

Here you go... /1

— nick kokonas (@nickkokonas) August 3, 2026

According to Kokonas, NYC prefers one operator who will commit to running all five stores. Unfortunately, three of the sites haven't been identified yet. Despite that, bidders are told to estimate the cost of stores in unknown neighborhoods and just assume the store is "about 15,000 sq ft."—something Kokonas calls "absurd."

The idea behind operating all five stores is likely that scale will lower costs (when has government ever cared about that?) but Kokonas notes that NYC may not award all five stores to the same bidder.

Bidders get preference for operating all 5 stores, presumably b/c scale lowers costs. But NYC awards each store separately, so an all-5 bidder may win only 1. They want scale pricing while refusing to award scale.

— nick kokonas (@nickkokonas) August 3, 2026

"They want scale pricing while refusing to award scale," he wrote.

That sounds about right for government.

But there's more. Remember how Mamdani admitted the stores wouldn't carry certain things like meat or a hot deli? Well, the RFPs must both carry a "limited SKU" model and carry full grocery departments plus household goods, ethnic foods, vegan products, Kosher products, and other things.

"Pick one," Kokonas noted.

The stores must use a “limited SKU” model. They must also carry full grocery departments, household goods, culturally specific products, plus kosher, halal, vegan, gluten-free, dairy-free and diabetic options. Pick one.

— nick kokonas (@nickkokonas) August 3, 2026

This is going great.

The RFP also says the stores won't have deli counters or on-site food prep, but that they will also have chicken salad, egg salad, and other deli items for sale. That means they'll be shipped in daily.

The RFP says stores won’t have deli counters or on-site food prep. Then its Core Basket includes chicken salad, egg salad, potato salad, fruit salad and other deli-prepared foods. So, a deli w/o a deli.

Oh... you're going to ship them in every day prepared. Gotcha...

— nick kokonas (@nickkokonas) August 3, 2026

It's going to cost the operators a pretty penny, too. Why? NYC picks the design, equipment, fit-out and refrigeration of the stores. The operators pay for everything else, including maintenance and security.

NYC chooses and pays for the design, equipment, refrigeration and fitout. The operator pays utilities, maintenance, cleaning and security. So NYC makes the capital decisions while someone else pays for the consequences.

That's how they control the goalposts.

— nick kokonas (@nickkokonas) August 3, 2026

So that'll put the thumb on the scales against the operators. Security, especially given how NYC doesn't prosecute criminals, will be costly.

And the math doesn't work, either. NYC wants the "best" bid to offer those aforementioned 30 percent discounts, but also good wages and benefits, full-time jobs, and a slew of other woke demands.

On top of that, 20 percent of the RFP score will go to the bidder who needs the lowest subsidy.

The “best” bid promises 30% discounts, best-in-class wages/benefits, local sourcing, sustainability, community programs and full-time jobs. Then 20% of the score goes to whoever claims they need the least subsidy. Lowballing is the strategy.... and then cost overruns are guar.

— nick kokonas (@nickkokonas) August 3, 2026

Once again, pick one. You get a 30 percent discount and "best-in-class wages/benefits" or you get the lowest necessary subsidy.

That 30 percent discount must also be the actual price of the item, not a sale or promotion, and to unlock those discounts, the stores have to create a membership program. Mamdani already said IDs would be required to access the stores ... which are also reportedly available to all.

Core Basket discounts must be universal “sticker prices,” not promotions. Then the operator must create a membership card to “implement the discount program.” Which is it? Universal shelf price or an ID card system -- btw, also says it's available to all people...

— nick kokonas (@nickkokonas) August 3, 2026

Which one is it?

Kokonas also shared a page from the RFP asking bidders to estimate affordability payments.

Perhaps my favorite page that I did not include in my original thread is just, chef's kiss, amazing.

How could you possibly estimate such a thing? And such a level of detail requested !! (you might want additional spreadsheets...) pic.twitter.com/0sRQ0hYrWe

— nick kokonas (@nickkokonas) August 3, 2026

The document requires bidders to estimate the sales they'll do in the so-called "Core Basket" items across the five boroughs, as well as the sales of the non-core items, costs of personnel, operational costs, and the costs of "additional programs."

So are these grocery stores or community centers and social services offices?

This entire scheme is pure socialism in action: waste a lot of money, reduce the quality of living, and destroy businesses and economies in the process.

Editor’s Note: New York City is now facing the consequences of Mayor Zohran Mamdani’s socialist takeover.

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