In a fiery critique, Rep. Michael Rulli, R-Ohio, has condemned a proposal by New York City mayoral candidate Zohran Mamdani to establish government-run grocery stores, calling it a potential disaster for the U.S. grocery sector.
According to Fox News, the controversy centers on Mamdani's plan for a pilot program of five public markets across NYC’s boroughs to tackle food insecurity and cut costs, which Rulli argues could devastate both small and large private businesses by stifling competition.
Mamdani, a 33-year-old New York State Assembly member and self-described democratic socialist, unveiled his idea for public grocery outlets earlier this year.
His proposal aims to place one government-operated store in each of New York City’s five boroughs as a test to address rising food prices and limited access in underserved areas. This initiative has garnered support from prominent progressive Democrats, including Reps. Rashida Tlaib, D-Mich., and Alexandria Ocasio-Cortez, D-N.Y. However, it has also drawn sharp criticism from Republican figures like Rulli, who see it as a dangerous overreach into private enterprise.
Rulli, whose family owns Rulli Brothers, a small chain of two stores near Youngstown, Ohio, emphasized the razor-thin margins in the grocery industry. He noted that profits for his family’s business have ranged from 1.25% to 1.7% over the past several years. “My brothers run that store, our family store,” Rulli said, highlighting the personal stake he has in the debate.
“They have gone between [1.25%] and 1.7 net in the last five to six years,” he added, underscoring how little room there is for error in the sector. Rulli explained that typical profit margins for grocery stores hover between 1% and 3%, making them vulnerable to any disruption. He fears that government-backed stores could undercut private businesses by offering lower prices, a move he sees as unsustainable.
“This will be a bullet into the heart of the U.S. grocery industry, if this caught on,” Rulli warned in a statement to Fox News Digital. He argued that if such a model expanded beyond the initial five stores, it could force both small family-run shops and major chains like Kroger out of the market.
“Whether it's a mom-and-pop or a Kroger, or you can have a Harris Teeter, all these different players – all of them would go out of business, and you'd only have the government-run business,” he cautioned.
“So once you have only government-run business, there's no incentive for there to be creativity, competition, variety,” Rulli continued, pointing to potential long-term consequences. He also expressed concern for New York City’s iconic bodegas, small corner stores that could struggle to compete with public markets. Rulli suggested that reduced competition might initially lower prices but could ultimately drive costs up as options dwindle.
“You want to limit the amount of things that they could buy at the grocery store?” Rulli asked, directing his frustration at Mamdani’s vision. “One of the few things that the blue-collar American, the populist American, can actually take comfort in is the variety of [items] at the grocery store,” he asserted. He believes that working-class families, who rely on diverse and affordable options, would suffer most from a lack of market-driven choices.
To illustrate his point, Rulli recalled a historical moment when former Russian leader Boris Yeltsin visited a Texas supermarket and was astounded by the vast selection. “You have the options on different size, amounts,” Rulli noted, emphasizing the importance of such abundance. “There's so many different things, and you're going to have 15 or 20 kinds of varieties. That makes for a good quality of life,” he added.
Rulli painted a grim picture of what could happen if other cities followed suit with similar programs. “Say you're going to Cleveland, Ohio, and the mayor opens up ten government-run stores, half the cost of all the other different stores,” he hypothesized. Such a scenario, he argued, would decimate local businesses unable to match government-subsidized prices.
Meanwhile, Mamdani’s candidacy has shaken up the New York City mayoral race after his surprising win in the Democratic primary, where many expected former Gov. Andrew Cuomo to dominate. He now faces Republican Curtis Sliwa and current Mayor Eric Adams, who is running as an independent, in the November election. There are also rumors that Cuomo might launch an independent campaign, further complicating the contest.
Several New York Republicans, speaking to Fox News Digital last month, suggested that a Mamdani victory could provide political leverage for the GOP. Despite this, they remain committed to opposing his far-left policies, including the grocery store proposal. Fox News Digital reached out to Mamdani’s campaign for a response to Rulli’s criticisms but has not yet received a reply. The debate over government involvement in the grocery sector continues to intensify as the mayoral race progresses, with broader implications for economic policy nationwide.