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Frank Garcia leads coalition of immigrant-owned grocers in lawsuit against Mayor Zohran Mamdani's city-run grocery stores

A coalition of immigrant-owned grocers, led by Frank Garcia, filed a class-action lawsuit on Monday against New York City Mayor Zohran Mamdani to halt his plan to establish five government-owned grocery stores. The Multicultural Business Coalition argues that the taxpayer-funded stores, which aim to offer staple items at 30% below market rates, will create unfair competition for small, minority-owned businesses that operate on thin profit margins. Frank Garcia stated that the city-run stores are pitted against its own citizens, urging the administration to adopt a private buying-group model instead. The administration announced that the five stores will be operated by private grocers and will open in each borough by 2029. Mayor Zohran Mamdani defended the plan, noting that the municipal stores will not sell high-revenue items like cigarettes or lottery tickets, which are staples for neighborhood bodegas. The lawsuit alleges that the city failed to conduct a proper analysis of how the municipal stores would affect local businesses. The coalition seeks to way to bolster independent stores through grants, tax abatements, and reduced regulations.

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