In the recently concluded Democratic primary for the mayor of New York City, state legislative member Zoran Mamdani won and defeated former governor Andrew Cuomo for the nomination.
One proposal to stimulate both supporters and opponents was Mamdani’s plan to open five city-owned grocery stores. in Campaign Videohe called the store a “public option” like healthcare. He said they would not pay rent or property taxes, they “run without profit motives” and their “mission” [would be] The price is lower, not a cut-off price. ” (” (As of January 2025the average net profit margin for the grocery industry was below 2%. )
Some have come to defend the Mamdani and say that city-owned grocery stores are not as radical as they can be heard. In fact, some states already have them without becoming a socialist hellish look. Some compared the plan to states that control liquor sales. However, in both cases, the comparison is different from the suggestion of Mamdani.
“Not many grocery stores owned by the five cities.” Progressive commentator Zaid Jilani I wrote it on x. “There are cities in Kansas and Florida where there are city-owned grocery stores.”
The example of Jirani is overwhelming: City Council of Erie, Kansas; I bought it Rather than closing, it is the only grocery store in 2020. The city ran the Erie Market for years, but was at a loss: Mayor Erie I said The average customer had to spend $50 a month on the store floating, but his actual monthly spending was close to $14. Last year, Ellie Rental A store run by a private company.
The town of Little River, Kansas also has city-owned grocery stores. I just own it The building and its refrigeration system. The store itself is privately owned and operated.
Baldwin, Florida open A completely government-owned grocery store in 2019 after the town’s only grocery store closed last year. The town already owns the site and funded the construction of the building 10 years ago to buy lots and plead for the town for a grocery store.
“We’re not trying to make a profit,” Republican Mayor Shawn Lynch said. I said Washington Post When Baldwin Market opened. “We’re trying to cover the costs and keep the store running.”
shop Closed in 2024 After working in business for less than 5 years. “A store run by the town” Florida Times Union At the time, he wrote, “I’ve been struggling for years… to get to the point where it gets broken.”
Quote Lynch, a researcher at Vanderbilt University Found“The lack of ‘purchasing power’ harms local grocery stores when competing for customers with Walmart and other bigbox grocery stores. They can offer much lower prices. I make long commutes and shop at a store 10 miles outside town. ”
It is worth noting in the example above that the government intervened when the only grocery store in a small town went out of business. It doesn’t really make much sense in a city like New York, with 1,000 grocery stores being offered 8.5 million– 8,500 to 1 ratio at grocery stores usually See 15,000 to 1 as a viable market.
Government-run grocery stores face similar issues and struggle to break down despite taxpayer support, but are likely not offering any meaningful benefits than they are.
Others argue that they are defending Mamdani’s proposal by pointing out the number of alcohol. Control statethe government handles the sales and distribution of all hard alcohol in the state.
“I’m not sure if public grocery stores are actually great ideas, but my county operates all liquor stores and wholesale distribution, [Mamdani’s] The plan is basically just a pilot program“Benji Sarin, Opinion Editor Washington Postwritten in a I’ll post it on x. (Sarrin) It’s attracting attention In a later post, the state liquor monopoly may not be very large in reality.”It lies in the realm of policy proposed by Normy politicians as well as socialist politicians.. “)
“The 17 states run liquor stores, including Alabama, West Virginia, New Hampshire and Montana. No one thinks these are socialist states.” ion Editor Sam Hasselby Added. “People need some perspective.”
This example also cannot withstand scrutiny. In fact, 17 states and four other regions (which account for almost 25% of the total population and a similar share of all liquor sales in the US) are in control. Sarlin seemed to be referring to Virginia. It works Over 400 liquor stores.
However, there are only seven of the 17 control states that actually own and operate their own stores. Other 10″ pulls strings from height to sell a selection of spirits to all private vendors” and set[ting] We determine the lowest cost, essentially at the consumer level.” According to Thrillist.
The results are not surprising. Survey from 2014. “Only five brands were at least 10% higher under licensed status, while 27 brands were at least 10% higher under control status.”
State-run liquor stores serve a very different purpose than grocery stores.
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“Residents of Control State consume 14% less spirit and 7% total alcohol than those of Licensed State.” pride The justice of alcohol that supports the alcohol industry.
Almost 40 years ago, Iowa I gave up The liquor store’s monopoly maintains control over distribution, but transfers sales to privately owned stores. At the time, authorities were clear about what the purpose was. New York Times Written in 1986. “They were purposefully placed there to prevent people from drinking,” said Rolland Gallagher, head of Iowa Beer and Liquor Control.
Certainly, the government-run grocery store model is essentially different from liquor stores. Unlike Control State, grocery stores are not intending to limit the amount of groceries people buy. And even under the suggestion of Mamdani, private grocery stores will not be banned. “Mamdani has not proposed to expropriate capitalist grocery stores and make privately owned grocery stores illegal.” Haselby Added In a subsequent post.
Still, the principles remain the same. State liquor stores are more expensive than non-state-owned stores. This is a feature, not a bug. Higher-priced government-run grocery stores are the worst of both worlds.
Government-run retail facilities are inherently less efficient than private sector counterparts. “Public options” like Mamdani’s supporters don’t need to make a profit, and you can rely on taxpayer money to support your losses. For industries like grocery stores, which already have a thin profit margin for razors, publicly funded competitors will be a bad deal for New Yorkers.
