Mayor Announces N.Y.C. Groceries Vision and RFP for Private Operator

Grocery costs have risen 33% nationwide since 2019

Mayor also released RFP for Operators to Manage Five Municipal Grocery Stores Expected to Open by 2029

Discount projected to save New Yorkers an average of $90 a month-or $1,000 a year

NEW YORK, NY-Today, Mayor Zohran Kwame Mamdani, Deputy Mayor for Economic Justice Julie Su and New York City Economic Development Corporation (NYCEDC) announced that a core basket of everyday groceries will be 30 percent cheaper at the five new municipal grocery stores. The basket will include all fresh produce, meat and seafood, along with roughly 20 additional categories of pantry staples, dairy and refrigerated goods. The discount will apply to all regardless of income, with prices locked in and predictable rather than fluctuating week to week as is the case at private grocers. Combined, the savings are projected to cut New Yorkers' average grocery bill by 15 percent, about $90 a month, or roughly $1,000 a year.

The Mayor also issued a request for proposals (RFP) from qualified grocers or firms to serve as operators of one or more N.Y.C. Groceries stores. The selected operator will be responsible for day-to-day store operations, including merchandising, staffing and adherence to strong labor practices.

The Mamdani administration's network of municipal grocery stores-a core pillar of the Mayor's Affordability Agenda-will guarantee lower prices for New Yorkers across the five boroughs, including the more than 40% of families who struggle to afford food. The first grocery store will open by the end of 2027 at Hunts Point in the Bronx, a neighborhood where 77% of households struggle to afford basic necessities. All five stores-one per borough-will be open by the end of the Mayor's first term, including La Marqueta in East Harlem. The Mayor has allocated $70 million in the capital budget to deliver on this core commitment to New Yorkers, in partnership with NYCEDC.

"Every week, New Yorkers walk into a grocery store hoping the prices haven't gone up again," said Mayor Mamdani. "A trip to the grocery store shouldn't spell dread for New Yorkers. That's why we are guaranteeing a 30% discount on the most common and most critical groceries for families across the five boroughs-including eggs, milk, chicken and fresh fruits and vegetables. In a city that's defined by unpredictability, you deserve stability-no matter what aisle you're in."

"Groceries are one of the clearest places New Yorkers feel the cost of living every week," said Julie Su, Deputy Mayor for Economic Justice. "This administration is building a grocery store model that puts affordability first, with a 30 percent discount on essential foods and quality jobs for the people who run these stores. That's what it means to make this city work for working people."

N.Y.C. Groceries: A Recipe for Affordability is a plan that clearly and transparently defines Mayor Mamdani and the Administration's goal of making basic groceries more affordable for all New Yorkers and with the 30% discount on essential items, this first-of-its-kind municipal program has the potential to become an essential public service," said NYCEDC Interim President & CEO Jeanny Pak. "We are thrilled to be leading this RFP in search of private operator who is going to be a key partner in the success of this initiative and serve as another example of how public-private partnerships can help make New York City more affordable for everyone."

N.Y.C. Groceries: A Recipe for Affordability is structured into nine sections that consist of:

• The Need: Food affordability means that New Yorkers can meet their basic grocery needs without spending an unreasonable share of their income. Today, nearly 80% of New Yorkers report concern about rising food prices.
• N.Y.C. Groceries: The initiative will establish a first-of-its-kind model in major US cities: Municipal supermarkets with private grocery store operators to lower prices, improve access and set clear standards for quality and accountability.
• How We Measure Affordability: N.Y.C. Groceries is designed to make that expectation real by delivering consistent, everyday savings on the essential foods families need most. Operators will be required to stock items across key food categories and offer clear, reliable pricing on the shelf, with prices for core items locked in monthly and updated periodically to reflect market conditions.
• The Operating Model: The City sets the mission, the standards and the store design; experienced third-party operators run the stores day to day under those requirements.
• Site Selection: N.Y.C. Groceries stores are going where need is highest, but that need looks different across the City. The City is using a data-driven approach to identify priority neighborhoods facing the greatest challenges with grocery affordability and access.
• Public & Stakeholder Engagement: To guide this work, City Hall has convened an interagency taskforce bringing together agencies responsible for food policy, labor and worker protection, consumer protection and planning. New Yorkers will have multiple ways to share feedback and directly shape how N.Y.C. Groceries stores operate in their communities.
• Good Jobs: N.Y.C. Groceries will deliver quality jobs alongside affordable groceries. Operators will be required to provide family sustaining wages and benefits and commit to a Labor Peace Agreement so that workers who want to organize can do so without interference. Affordability for shoppers and dignity for workers are part of the same commitment to working people.
• Supporting the Broader Grocery Ecosystem: N.Y.C Groceries is not a stand-alone initiative. It is designed to work alongside and strengthen the broader food and grocery systems that the City has built and that New Yorkers rely on every day.
• Path Forward: The City has already begun moving N.Y.C. Groceries from vision to execution. Following the Mayor's initial announcement and call for public input in spring 2026, New Yorkers, workers and industry experts have helped shape this initiative through ongoing roundtables and focus groups.

The RFP seeks operator(s) to accomplish the following goals:

Managing N.Y.C. Groceries at one or more sites, handling a comprehensive set of grocery store operating responsibilities, including but not limited to:

• Merchandising: Operator(s) must consistently stock items across standard grocery departments
• Product Sourcing: Operator(s) must develop reliable, cost-effective supply chains that support merchandising.
• Private Label: Operator(s), in collaboration with NYCEDC, will identify and pursue opportunities to launch an N.Y.C. Groceries private label across a variety of product categories.
• Quality Assurance: Operator(s) will manage operational and supply chain food safety and quality assurance functions.
• Staffing: Operator(s) must design and implement staffing models that ensure reliable store operations, including but not limited to adequate stocking levels, coverage at all operating hours, customer service standards and inventory management.
• Security: Operator(s) will be responsible for securing N.Y.C. Groceries sites for shoppers and workers, managing crime and loss prevention.

N.Y.C. Groceries: A Recipe for Affordability builds on a number of past announcements for this initiative including the selection of the first two sites in East Harlem and Hunts Point; the N.Y.C. Groceries Sites Portal to identify potential locations for future stores in Brooklyn, Queens, and Staten Island; and, most recently, the Request for Proposals for design firms to develop the N.Y.C. Groceries brand identity.

For more information about the private operator RFP, visit the NYCEDC RFP webpage. NYCEDC will facilitate a virtual information session on Wednesday, August 5, 2026, at 9 am ET. Prospective respondents must RSVP by Monday, August 3. Responses to the RFP are due by 4 pm ET on Friday, October 16, 2026. For more information about N.Y.C. Groceries, please visit the N.Y.C. Groceries webpage.

About NYCEDC
New York City Economic Development Corporation is a mission-driven, nonprofit organization that works for a vibrant, inclusive, and globally competitive economy for all New Yorkers. We take a comprehensive approach, through four main strategies: strengthen confidence in NYC as a great place to do business; grow innovative sectors with a focus on equity; build neighborhoods as places to live, learn, work, and play; and deliver sustainable infrastructure for communities and the city's future economy. To learn more about what we do, visit us on Facebook, X, LinkedIn, and Instagram.

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