Portnoy Calls Mamdani's Taxpayer-Funded Grocery Plan a 'Publicity Stunt,' Warns of Long-Term Viability
Key Takeaways
- •New York City Mayor Zohran Mamdani has proposed taxpayer-funded grocery stores aimed at improving food access in underserved neighborhoods commonly described as food deserts.
- •Dave Portnoy predicted the stores would appear successful in their early months because heavy public funding could temporarily mask the grocery industry's typically thin profit margins of one to three percent.
- •Portnoy argued the proposal's true viability can only be assessed after two to three years, when the stores must operate as self-sustaining businesses without ongoing subsidies.
- •Several U.S. cities have previously attempted municipal or nonprofit grocery interventions in underserved areas, with mixed financial outcomes.
- •Portnoy described the plan as a potential publicity stunt, cautioning that early performance data would not necessarily demonstrate long-term sustainability.
New York City Mayor Zohran Mamdani's proposal for taxpayer-funded grocery stores is reigniting debate over whether government-operated retail businesses can sustain themselves without ongoing public subsidies. The plan taps into a broader policy conversation about food access in underserved neighborhoods — often described as food deserts — that several U.S. cities have attempted to address through municipal or nonprofit grocery interventions, with mixed financial outcomes.
Barstool Sports founder Dave Portnoy appeared on FOX Business' Varney & Co., speaking with host Stuart Varney about the plan, which has drawn both interest and skepticism over its potential to lower food costs while remaining financially viable.
Portnoy initially expressed confusion over reports regarding how shoppers would access the stores, noting that earlier discussions appeared to suggest a membership card would be required.
"This is crazy to let… anybody go," Portnoy said.
While he was critical of the concept, Portnoy predicted the stores could appear successful in their early months due to substantial public funding. The grocery industry is well known for operating on razor-thin profit margins — typically between one and three percent — which has historically made even well-established chains vulnerable to closures and bankruptcies.
"I think this is going to be very successful, this grocery store, in the short term," Portnoy said. "If you're gonna put… some astronomical amount of money into this, I think it's gonna sorta be a mirage."
Portnoy argued that heavy taxpayer subsidies could temporarily mask the underlying economics of running a grocery operation.
"I think taxpayers will make this work, and he's gonna look how great communism, socialism is," Portnoy remarked. He added that the program should not be evaluated based on its first several months of operation.
Instead, he said the real test would come years down the line, when the stores would need to function as self-sustaining businesses.
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"Talk to me in two years, talk to me three years when you're running an actual business and have to maintain it," Portnoy said. "That's when it's gonna be hard."
For that reason, Portnoy characterized the proposal as "kind of a publicity stunt," contending that early performance figures would not necessarily demonstrate long-term viability.
