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Government Grocery Stores: A Solution or the Next Food Desert?

 In an era of skyrocketing food prices and growing concern over so-called "food deserts", New York Assemblyman Zohran Mamdani has introduced a strikingly bold proposal: city-owned grocery stores, one in each borough of New York City. The idea, at first glance, appeals toa  certain intuitive sense of justice–public land, public money, and public access to food.

But as history, economics, and pragmatic governance suggest, the reality is likely far more complex–and potentially dangerous for the very communities Mamdani aims to help.

The Proposal

Mamdani's plan centers on building municipal grocery stores using city-owned land. These stores would not pay rent, would not operate for profit, and would offer goods at wholesale prices. In theory, this would undercut large private retailers and make food more affordable for low-income residents.

The stated goal: eliminate food deserts–neighborhoods where fresh, healthy food is hard to access.

A Familiar Problem

The USDA estimates that over 53 million Americans live in areas with limited access to grocery stores. In cities like New York, these food deserts often overlap with areas experiencing economic hardship and racial inequality.

There is no doubt that access to food is a moral issue. Poor nutrition correlates strongly with chronic illness, reduced educational outcomes, and higher mortality rates.

But does that justify government-run grocery stores?

Public Sector Retail: A Historical Caution

The United States has limited experience with government-operated grocery stores, but what exists should caution reformers. In Baldwin, Florida, a city-run grocery store opened in 2018 to great fanfare. It closed within a year. In rural Kansas, the town of Erie supports a municipal grocery store–barely. It operates at a financial loss, requires volunteer labor, and receives donations to stay afloat.

Municipalities are rarely successful at competing in high-turnover, low-margin retail environments. Grocery stores typically run on 1-3% net profit. Any miscalculation in supply chain, management, or local demand can mean failure.

And unlike private businesses, government-run stores rarely close quietly–they drain taxpayer funds long after they stop serving their purpose.

The Risk of Crowding Out

Perhaps the most serious unintended consequence of Mamdani's proposal is the potential for market displacement. If city-run stores operate tax-free, rent-free, and without profit expectations, they will artificially depress food prices–at least initially.

This sounds like a win, but in reality, it undermines neighboring bodegas, immigrant-owned shops, and chain stores that already operate on tight margins. If those stores close, and the municipal alternative fails (as so many have), the result is not food access–but a food desert created by government intervention.

In trying to solve a problem, we may destroy the fragile web of private infrastructure keeping it at bay.

Pragmatic Alternatives

This is not a rejection of the goal–only the method. If the true objective is better access to affordable food, the U.S. has examples of effective public-private cooperation:
  • In Washington, D.C., the Healthy Food Retail Program offers grants to small grocers to expand produce.
  • Pittsburgh has used zoning and subsidies to encourage supermarket development in underserved areas.
  • Mobile markets and food shuttles have proven highly effective in rural and urban neighborhoods alike.
  • Some cities have used voucher expansions, allowing SNAP recipients to get more value when buying fresh food.
These models work with existing grocers, not against them. They don't require the city to become a retailer–but they help ensure every resident has somewhere to buy a tomato.

Final Thoughts

Zohran Mamdani's proposal is well-intentioned, and it taps into the real frustrations of working-class families watching food prices rise. But policy cannot be judged on intentions alone.

We must ask: Will this work? Will it help? Will it last?

Unless municipal grocery stores are managed with unprecedented discipline, transparency, and neutrality–they are more likely to collapse or cannibalize local competition than solve food insecurity.

We need solutions that are rooted in reality, tested in the market, and open to accountability.

I believe in practical answers to real problems–not political theater. Food deserts are a moral challenge. But so is spending public funds on programs that fail the people they're meant to serve.

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