A former grocer is criticizing New York City Mayor Zohran Mamdani's plan for government-run grocery stores, saying it will hurt small businesses.

Rep. Mike Rulli said the government-run supermarket will lose money from the start. He doubts these stores will last more than five years, maybe not even a year.

Rulli grew up with his family's grocery store chain in Ohio, now run by his brothers.

Experts say Mamdani's grocery plan is an illusion that taxpayers will pay for.

New York City Mayor Zohran Mamdani spoke at a food distribution center in Brooklyn on July 27, 2026.

Rulli said his family's business has shown him the challenges small business owners in New York City face, which will be made worse by Mamdani's city-run stores.

Rulli said the city-run stores will put hundreds of small businesses out of business, many owned by immigrants. He thinks this is a bad situation.

A New York governor hopeful promises to stop Mamdani's socialist agenda.

Mamdani, a Democratic socialist, plans government-funded grocery stores. The city will spend $70 million on five stores, one in each borough, to open by 2030.

Rep. Michael Rulli testified in a House subcommittee hearing on rail safety in Washington, D.C., on July 23, 2024.

Mamdani said the city-run stores will set prices 30% below typical retail prices once a month.

Mamdani's city grocery plan could leave taxpayers paying for everything.

While progressives like the plan, business groups like the Multicultural Business Coalition do not and might sue Mamdani.

Rulli said Mamdani's government shops will likely operate at a loss all the time because grocery stores have thin profit margins.

Rulli explained that the grocery industry runs on about 27% gross profit before paying bills, leaving a small net profit.

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Rulli argued that this would be a drain on taxpayers as long as the stores are open.

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Rulli said this is the biggest mistake the mayor has made.

Elizabeth Elkind is a politics reporter for Fox News Digital, covering the House of Representatives. She has written for Daily Mail and CBS News.

Follow Elizabeth Elkind on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com.