Governor Kathy Hochul just dropped a truth bomb on a socialist scheme that could turn New York City’s grocery aisles into a grim echo of Soviet bread lines.
According to New York Post, at a breakfast meeting in the Hamptons on Saturday, August 16, 2025, hosted by supermarket titan John Catsimatidis, Hochul aimed to support NYC mayoral candidate Zohran Mamdani’s proposal to launch five government-owned grocery stores, one in each borough, while critics like Catsimatidis warned of disastrous precedents and potential harm to private businesses.
Hochul, a moderate Democrat, didn’t mince words when addressing business leaders at the swanky event. “I favor free enterprise,” she declared, earning hearty applause from attendees. That’s a polite but pointed jab at Mamdani’s plan, which seems to ignore the basic principle that competition, not government control, drives innovation and choice.
Mamdani, the Democratic nominee and current frontrunner for the November 2025 mayoral race, has pitched a network of municipal markets starting with five stores at a combined cost of $60 million. It’s a bold idea, but one that raises eyebrows among those who value market freedom over state-run experiments.
Critics aren’t just skeptical—they’re sounding the alarm. They fear these city-operated shops could morph into “Soviet-style” markets, limiting New Yorkers to a single brand or generic versions of essentials like bread or milk. That’s not a choice; that’s a mandate dressed up as progress.
Then there’s the ripple effect on private businesses. Fixed prices at these government stores could undercut competitors like Gristedes, potentially forcing them to shutter and leaving consumers with fewer options. It’s a classic case of good intentions paving a road to economic harm.
John Catsimatidis, the supermarket mogul hosting the Hamptons gathering, brought a real-world cautionary tale to the table. “New York City is a capitalist city – look what happened in Kansas City?” he asked, pointing to the recent closure of Sun Fresh Market, a government-backed store that folded on Monday, August 11, 2025. That’s not just a failure; it’s a flashing red warning sign.
Kansas City reportedly poured $18 million over a decade into Sun Fresh Market, only to watch it crumble under financial losses, shoplifting, and empty shelves. If that’s the blueprint Mamdani is working from, New Yorkers might want to stock up on canned goods now.
Hochul’s stance at the breakfast resonated with the crowd, including Catsimatidis himself, who couldn’t resist piling on. His reference to Kansas City’s flop isn’t just a critique—it’s a reminder that government isn’t always the answer to market gaps. Sometimes, it’s the problem.
The notion of city-run groceries isn’t just impractical; it’s a direct threat to the private sector that has long fueled New York’s economy. When government steps in to play shopkeeper, it’s not a level playing field—it’s a rigged game that could leave iconic local stores out in the cold.
Mamdani’s campaign, perhaps sensing the heat, declined to respond to the criticism. That silence speaks volumes, suggesting either a lack of defense or an unwillingness to engage with valid concerns. New Yorkers deserve a debate, not a dodge.
Meanwhile, Hochul has yet to endorse any candidate in the mayoral race, keeping her cards close to the chest. Her comments, though, make it clear she’s not buying into a vision of government groceries. It’s a stance that aligns with those who see free markets as the backbone of prosperity.
Let’s be real: New York City thrives on hustle, diversity, and yes, capitalism. Introducing state-controlled stores risks stifling the very spirit that makes the city a global powerhouse. It’s not about rejecting help for underserved areas—it’s about finding solutions that don’t involve heavy-handed government overreach.
Catsimatidis summed it up with a blunt assessment of these municipal market schemes: “These types of grocery stores just don’t work.” He’s not wrong, and the Kansas City debacle backs him up. Why gamble with New York’s future on a failed model?
At the end of the day, Hochul’s applause-worthy stand in the Hamptons isn’t just a defense of free enterprise—it’s a call to preserve the choices and dynamism that define New York City. Mamdani’s proposal might come from a place of wanting to address food deserts, but the path he’s chosen looks more like a detour into economic quicksand. Let’s hope cooler heads prevail before taxpayers are left holding a $60 million bag of empty promises.
