The Mamdani administration is now actively scouting locations across all five boroughs for city-backed grocery stores — the centerpiece of the self-described democratic socialist's mayoral campaign and a proposal that drew comparisons to Soviet-style central planning before a single site has been named.

Julie Su, Mamdani's newly created deputy mayor for economic justice and a former Biden administration acting labor secretary, confirmed the effort but declined to reveal where the stores would go, Bloomberg Law reported. Her vision, as she described it:

"The vision is to have at least one grocery store that the city helps to bring to fruition in each borough that would bring down real costs in a way that New Yorkers can feel."

That's the pitch. At least five government-backed grocery stores, targeting so-called food deserts, run or are supported by the same city government that can't keep its public housing storefronts occupied. The administration won't say how much it will cost, when the stores will open, or what the operating model looks like. Details, apparently, are for later.

A new kind of City Hall and the business community knows it

The grocery store plan doesn't exist in a vacuum. It's the most visible piece of a broader economic reorientation under Mamdani, who took office on January 1 and immediately began signaling that the old rules no longer apply. His administration represents a sharp departure from decades in which New York's economic agenda was shaped by finance, real estate, and elite legal institutions. The new regime is built around enforcement, regulation, and — now — direct government participation in the retail economy.

Su's portfolio tells the story. She oversees the NYC Economic Development Corporation, the nonprofit arm of City Hall responsible for negotiating development deals and public subsidies with some of New York's biggest companies. She's also gone after food-delivery companies, securing a $5 million settlement over worker pay violations from Uber Eats, Fantuan, and HungryPanda — more than $5.1 million in restitution, civil penalties, and damages to over 49,000 delivery workers. And on January 22, the administration finalized a rule banning hidden hotel fees — so-called "resort fees," "destination fees," and unexpected credit card holds — set to take effect February 21.

None of this has gone unnoticed by the city's business establishment. Steven Fulop, CEO of the Partnership for New York City, offered a measured but telling response:

"This is largely uncharted territory and many employers and investors are understandably in wait-and-see mode. If the rules are clear, consistent, and implemented in a way that still values growth and job creation, the approach could ultimately strengthen New York's long-term labor market. But clarity will matter."

Read that again carefully. The head of New York's most prominent business organization is publicly asking for clarity. That's not a vote of confidence. That's a polite warning.

The enforcer who wants you nervous

When asked whether the administration's aggressive posture toward businesses might discourage investment, Su didn't hedge:

"If they weren't anxious, I would not be doing my job well."

That's a remarkable statement from an official whose portfolio includes the agency responsible for attracting business to New York City. Su's job is, in part, to negotiate development deals and subsidies with corporations. She is telling those same corporations that their anxiety is a feature, not a bug.

This is happening while private-sector payroll growth in New York has decelerated markedly and the city's unemployment rate has been rising. The economic backdrop doesn't exactly scream "now is the time for government to compete with the private sector in grocery retail."

The tech sector hedges its bets

Even the city's tech industry — which has largely stayed out of the political fray — is choosing its words carefully. Julie Samuels, CEO of Tech:NYC, offered the kind of statement that sounds supportive until you notice what it doesn't say:

"We live in a moment of significant technical transition, and it's essential that local government and the tech sector work closely together to ensure all New Yorkers benefit. We look forward to working with Deputy Mayor Su and the Mamdani administration to advance a vibrant, equitable tech industry that supports a more affordable city."

That's a press release, not an endorsement. "We look forward to working with" is what organizations say when they have no idea what's coming but don't want to be on the wrong side of whoever's in charge.

Government groceries and the lessons nobody wants to learn

The fundamental question the Mamdani administration hasn't answered — and apparently isn't ready to answer — is why the government of New York City should be in the grocery business at all.

No cost estimates have been provided. No timeline for when a single store might open. No explanation of the model — city-owned, city-subsidized, public-private partnership, or something else entirely. Su declined to name even one potential location. The administration is scouting sites for a program it hasn't defined, funded, or structured.

During the campaign, opponents accused Mamdani of wanting to install Soviet-style grocery stores. That criticism stuck because the proposal is, at its core, a bet that city bureaucrats can do what private grocers — operating in one of the most competitive retail environments on earth — apparently cannot. New York City, which manages public housing complexes riddled with empty storefronts and builds libraries at over $2,000 per square foot, now wants to stock shelves and manage supply chains.

The grocery industry operates on razor-thin margins. It requires relentless logistics, efficient labor management, sophisticated inventory control, and a willingness to adapt daily to consumer demand. These are not competencies that any city government has ever demonstrated at scale — and the track record of municipal experiments in grocery retail elsewhere in the country is, charitably, mixed.

The real agenda

What Mamdani is building isn't really a grocery program. It's a proof of concept for a fundamentally different vision of what city government does — one in which the government doesn't just regulate markets or subsidize participants, but enters the market directly as a competitor. The grocery stores are the tip. The enforcement actions, the hotel fee bans, the newly created deputy mayor position, the oversight of the Economic Development Corporation — that's the architecture.

Mamdani has said he doesn't want City Hall's relationship with corporations to become adversarial. But his deputy mayor is bragging about making businesses anxious. His administration is scouting sites to compete with private grocers. And the business community is responding with the corporate equivalent of backing slowly toward the door.

New York City's economy doesn't need a government grocery aisle. It needs a government that understands why the private sector is pulling back — and has the humility to ask whether its own agenda might be part of the answer.