'You are getting f-----!': Kevin O'Leary says New Yorkers will pay the price for Mamdani's 30% cheaper groceries plan - Yahoo Finance

What the report says

Yahoo Finance, republishing a Moneywise article, reported that New York City Mayor Zohran Mamdani’s proposal for subsidized, city-run grocery stores has drawn sharp criticism from investor and “Shark Tank” personality Kevin O’Leary. The plan would create one store in each of the city’s five boroughs and offer a 30% discount on produce, meat and other staple foods, with the first location expected in the Bronx near the end of 2027.

According to the report, the city says the discounts could save shoppers about $90 per month, or around $1,000 annually. Mamdani has framed the program as a response to high food costs and has set aside $70 million in capital funding. The city is seeking private grocery operators to run the stores, while the city would cover costs such as rent, maintenance and property taxes. An operating subsidy is also expected, though the article said the total cost has not yet been established.

O’Leary argued on X that grocery margins are too thin to support a 30% price cut without losses, saying taxpayers would ultimately cover the shortfall. Other critics cited by the article include City Councilwoman Joann Ariola, some small business owners and Frank Garcia of the Multicultural Business Coalition, who warned that subsidized stores could harm bodegas and neighborhood grocers.

Supporters say the proposal could help lower food bills for families struggling with inflation. The Citizens Budget Commission, a watchdog group, has called for deeper analysis of the program’s costs, its effect on existing retailers and whether it addresses the underlying causes of rising grocery prices.