A coalition representing immigrant- and minority-owned grocers in New York City has threatened legal action against any private company that agrees to operate Mayor Zohran Mamdani's planned taxpayer-backed grocery stores. Frank Garcia, chairman of the Multicultural Business Coalition, said the group hopes no operator submits a proposal at all, extending a legal fight that began with two lawsuits filed against the city on Monday. The dispute centres on fears that publicly subsidised stores would unfairly undercut small businesses already operating on thin margins.

The city's Economic Development Corporation opened a request for proposals in July seeking up to five operators, with bids due by 16 October and the five stores, one per borough, expected to open by 2029. Selected operators would run city-backed premises while selling a core basket of groceries, including produce, meat and staples, at 30% below typical retail prices. Mamdani has defended the plan's legality and argued it would not harm bodegas, noting the stores would not sell cigarettes, alcohol, lottery tickets or hot food, while also pointing to regulatory reforms aimed at helping small grocers cut costs. Garcia said his coalition sought a meeting with the mayor beforehand but was rebuffed, alleging he instead met only with Dominican business owners, leaving other minority groups excluded.