New York City on Monday was named in a lawsuit over Mayor Zohran Mamdani’s plan to open multiple taxpayer-funded grocery stores in the city next year, which could put mom-and-pop grocery stores out of business.

A coalition representing immigrant-run grocery stores brought the suit.

“These grocery stores and bodegas are right to be concerned about going out of business,” Heritage Foundation Chief Economist E.J. Antoni told the Daily Signal.

Antoni added that local stores “operate in an unfavorable tax and regulatory environment with thin margins,” which are compounded by the city’s crime, “which imposes additional costs.”

“It seems that Mamdani’s grocery stores will be in violation of the law from the standpoint of selling items at a loss to drive out competitors,” the chief economist concluded.

As stated in the lawsuit, the Multicultural Business Coalition argued that the mayor’s plan for city-run grocery stores violates New York civil rights laws and the state constitution’s equal protection clause.

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