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New York's mayor is targeting the Bronx with a free grocery store. >> Standing here this morning, I cannot help but think of the words of our 40th president, Ronald Reagan. He famously said, "The nine most terrifying words in the English language are, I'm from the government and I'm here to help." >> Oh, he's a good, >> BUT I DISAGREE. >> I THINK NINE MORE terrifying words are actually, "I worked all day and can't feed my family. We are going to use the power of government to lower prices and make it easier for New Yorkers to put food on the table. When government understands its purpose as serving the very working people that it has left behind time and again, it can make a difference in the most pressing struggles. And it's going to make a difference. All right, WAIT TILL YOU SEE HOW BIG THIS PLACE IS going to be. What if the meat products coming off this truck in Hunts Point were bound for not the local supermarket, but a cityrun grocery store? >> If the food is at low cost, it's going to be better on our pockets and our budget. >> And that's the idea, according to Mayor Zoran Mandani. Today, he unveiled the plans for a 20,000 square foot food store at the Peninsula, a redevelopment project on the site of a former juvenile detention facility. >> Look at this place. A 20,000 square foot grocery store. This is going to put every business within several miles out of business because nobody's going to be able to compete with this place. Especially these tiny little delies that are like a 200 square ft store. You're going to be able to fit hundreds of those in a ROOM THIS BIG AND EVERYBODY'S TAXES ARE GOING TO GO UP TO PAY FOR IT. BUT NOW THE QUESTION is why is the mayor doing this? With only one fullervice supermarket within a quarter mile, thousands of New Yorkers have only limited options. We are here together today to change that and to chart a new course. Last month, we announced that we would fulfill a campaign promise that we would lower prices by creating a network of city-owned grocery stores, one in each burrow. >> Uhhuh. >> In these stores, prices will be cheaper. Workers will be paid fairly and treated with dignity. Going to the grocery store will no longer cause that same anxiety for so many New Yorkers. I'm so proud to announce that the Bronx location will be here at the peninsula. >> And nobody cheering for this realizes that everyone's taxes are going to have to go up. And why are we so concerned with putting a store in a place where no stores are able to exist? That should be a huge red flag. And it gets even worse, especially if you're a business nearby. Watch this. >> Out of a former juvenile detention facility, city leaders expect the public grocery store to open in 2027. >> We are going to use the power of government to lower prices and make it easier for New Yorkers to put food on the table. City leaders asked New Yorkers what they would like to see inside a city-run grocery store, and the answers are rather crystal clear. Cheaper eggs, fresh produce, low prices, and a healthy variety. >> Here's the problem. Look at this green note right here. It says, "The same foods found in every supermarket. New Yorkers are already demanding that Mom Donniey's marts be just as good as Whole Foods and that everyone else in the city pay for it." And you know what that means? If you're trying to compete with these free stores, it's only a matter of time before they carry all the same stuff you do, just at lower prices, which every single person in town gets the privilege of subsidizing. Isn't this going to be great? No one's going to compete with these places. They are going to wipe out thousands of businesses. And then what do you think the affordability equation's going to look like here? Just last month, the mayor announced La Marqueta in East Harlem as the first site selected for the municipal grocery store program, which calls for a city-run food store in each burrow. A city-run grocery store on city-owned property lowers prices for shoppers by reducing the overhead costs normally passed on to consumers. It would be definitely helpful moneywise. Uh, cuz the money, it's getting expensive every every day for buying this food and and the necessary things. >> But where's all the money going to come from to run the grocery store? Here on the screen, they got a regular grocery store. Where does it get its money? It has to make a profit. It's not charging people and it's not getting free rent and it's not going to have to subsidize itself. Do you know how much these stores cost? The first store alone is going to cost $30 million, which is four times what it would cost to open a regular grocery store. So, the free grocery stores that are greedy and are charging everybody through the roof and ripping FAMILIES OFF when they try to buy eggs and starving kids, those grocery stores, you could open four of those for the price of one of these grocery stores. And it looks like this store is going to lose $300,000 a year forever. According to the experts, that is a nightmare. That is not an affordability solution. This is an unaffordability accelerator program disguised as help for people who are legitimately struggling but are not being told honestly about what is going to happen here. And while several businesses in Harlem expressed concerns about city subsidized essentials creating unfair competition, Hunts Point Bodea owner Javier Pacheco says as long as the city keeps its promise to only subsidize produce, he believes Bodega owners will still be able to make a profit by selling other products that wouldn't be discounted at the cityrun. >> He's right. But the voters are already demanding the city break that promise. And you better believe that when they open a 20,000 square f foot Whole Foods style grocery store and people walk in, they're going to walk in expecting it to be amazing. They're going to expect Costco. They're going to expect Whole Foods. They're going to expect a perfect grocery store that's just cheaper. They're not going to want to walk into these places and just see a bunch of vegetables. They're not going to want the vegetable section only of Whole Foods. They're going to want the whole thing. They're already saying it. And that will be the excuse to ramp these things up. And put everybody out of business. They're going to say, "Oh, the free grocery stores, the cityrun nocost stores, they are so successful. CUSTOMERS LOVE THEM." BUT THE ONE COMPLAINT WE'RE GETTING, THE REASON WE'RE NOT HAVING AS MANY PEOPLE USE THEM, IS because they say THERE'S CERTAIN STUFF THAT THEY CAN'T GET HERE, WHICH IS OVERPRICED EVERYWHERE ELSE. AND NOW WE'RE GOING TO EXPAND our inventory. Just you wait. That is totally going to happen. And this spells nightmare news for pretty much every business in town. People who actually run grocery stores in this city or bodeas >> hate this. And it's not because they hate another grocery store. They hate the fact that they have to compete against a bottomless pit of taxpayer money, which is what all these things are going to >> How do you compete with free? And if you look at the locations of first the Harlem location and now this Bronx location, there are several bodeas and independent mom and pop shops within a fiveb block radius. So what's going to happen is they're going to put out of business these independent grocerers and then when the governmentrun run grocery store fails as it inevitably will, these residents are going to actually be in a food desert where there are no options. Uh, the other thing that's interesting is yes, people will have a tough time especially because Kansas City tried a government run grocery store. It cost them $17 million. Now they're asking for another million and the employees had to carry around tasers because it was so dangerous at the governmentr run grocery store and there's empty shelves. So there was a lot of problems with this plan. >> Right. And here's the other problem. New York gets a lot of its money from the state, right? So New York City, it gets a bailout from the state every year to operate pretty much. And what they're going to do, they're going to have all these expensive programs. They're not going to work out. They're going to need everinccreasing amounts of money. And they're going to be able to say, hey mom, they're going to talk to the governor. Hey mom, can we have some more money? And she's going to say, well, uh, will your voters vote for me? Okay, here you go. And this thing is probably going to go on for a little while, especially if they expand their products offering, which is my prediction. People are already begging for it. And the local businesses around there, they're all going to be done. So, okay, temporarily cheaper groceries. Okay. But everybody's out of a job. Nobody's got any money to pay for them and the whole thing is going to collapse. >> If you want to bring cheaper food to people, roll back ownorous regulations that make it hard to open new stores. And it's really interesting because we're just not, you can throw so much money at this problem and still there are examples like the example you cited Briana in Kansas City that can these can just, the money can burn and evaporate, right? It does. But the groups that are opposing this are immigrantowned businesses in a lot of cases. AND SO HE'S WILLING TO basically sell out one of his strongest cons or what should be one of his strongest constituencies uh to just follow ideology that we know ends in failure. Uh, so if taxpayers should really be disappointed by this. >> Well, they should be, but they don't understand how this works. But you know who does? People that run the other supermarkets in town, the larger ones, the bigger ones that are going to be first on the chopping block when people stop showing up >> for his city-run grocery stores. And you're a grocery store owner. I mean, this is going to be in the Bronx and Hunts Point neighborhood. The 20,000 square ft location is set to open next year. >> I think it's, it's a game. The amount of uh uh difference that he's going to make is very, very little. Uh and uh if he's opening up in areas where there's no uh supermarkets or no food stores, I can understand that he's helping that particular area. But overall has zero effect except playing the music to the people that he wants him to be supported by. >> And what about these grocery stores? I mean, I I was thinking the other day, once you know that you go into a store and everything's free, isn't everything going to be gone? I mean, are they going to be able to stock it up? >> I I don't think it's going to be free. I think he's playing the game. He's said, he has said he'll have eggs cheaper. He'll have bread cheaper. And look, the supermarket wars have been going on for 50 years. You know, I have cheaper milk. I have cheaper bread. Yeah. Uh and it's just a game being played and the violin is being played to uh his supporters. >> Interesting. So, this guy that owns a bunch of grocery stores here, he says the price war thing isn't really going to matter. That there are certain places right now that have lower prices than somewhere else, but those don't necessarily succeed because their price was lower. What he's really SAYING IS, HEY, I made a campaign promise. Here it comes. Even if IT'S GOING TO COST YOUR MONEY AND YOU DON'T EVEN UNDERSTAND IT. THE OTHER question is how much cheaper are you really going to get? I mean, what's the markup on an orange? 5 cents, 10 cents. So, you're going to mark things down five or 10 cents. That right there means that the competitive advantage might not be as much. But, as we just saw, $30 million to open one store. That's huge. That's going to cost people money. At the same time, once people stop going to the little bodeas, those places are done no matter what because they're not going to be able to compete with 20,000 square ft of selection. But I mean, but I mean, your company owns the stores and you know, you would think that Mdani calls you to say, hey, here's my idea on grocery stores. Have you met with Mdani? >> Yes, we have met with Mandami. We met with his uh deputy mayor Julie says Sue. Uh and uh I've offered my services. I said there's nobody knows the uh people, the food business better than I do. >> What did they say? Did they blow you off or >> they, they No, they've offered, they want to talk to me. They want you. So, they're playing, you know, uh uh look, I'm available. >> They can't make it look like they want to knock other people out of business. They've got to make it look like they're working with everybody. And what they really need, what Mob Donnie really needs is the endorsement of other business people. He needs other business people to come out and say, "Yeah, he's on the right track. Yeah, he really understands affordability and you know, he's got some good ideas and I look forward to working with him." He just needs platitudes like that to make it sound like he's on the side of everybody when the reality is these stores are going to be a disaster. Either they work and put everybody around them out of business or they don't work and the reason they don't work is because there's no grocery store there already. Think about that for a second. Why are there NO GROCERY STORES? WHY DOES NOBODY WANT TO PUT IN a grocery store? Well, is it because grocery stores aren't profitable in those locations for some reason? Could that have to do with crime, shoplifting, the various costs of opening something? I mean, $30 million, if you got that kind of money to play with and you're going to get it from everybody. You can open anything anywhere. It's four times the price of opening a regular store. Maybe that's why there wasn't one there before. Now, everybody's going to pay for it. Yeah. >> I love New York. I'm available. I want to do the right thing for New York. >> Well, I, you know, a friend of mine was telling me that there's a petition going around for Bruce Blakeman. They want him to be conservative, Republican, and independent. I mean, they wanted to have as much uh exposure on the ballot as possible this November because if Kathy Hokll goes along with all mom Donny's ideas, the city is, it's, it's just the whole state to the left, right? I mean, this going to, is that going to change? >> We have large checks and balances in New York right now. We have uh Jay Clayton, the US attorney that's been appointed by President Trump. They worry about New York and they do what they have to do to keep New Yorkers safe and they take people off the streets. Now, the governor is the other person that's supposed to have the checks and balances in the city. >> And I think Blakeman has a terrific chance. His chances are increasing. >> Uh, and I think they're going to get down to 50/50 at some point. >> Wow. So, the grocery store guru here is predicting that Mayor Mom Donny's mischief, if you want to call it that, is actually in the process of tanking our current governor's run for reelection, saying that the competitor who's an executive in a county near New York has a real chance. But that would mean we have a Republican governor and a socialist mayor. What's that going to look like? >> Republican gubanatorial candidate Bruce Blakeman. Great to see you. Thank you. >> Zoran Mandani meeting with JP Morgan's JP and Goldman Sachs David Solomon among other finance chiefs yesterday as Charlie Gasparino broke down or broke the news last hour. Wall Street is pushing back on that meeting. The mayor is trying to manage the backlash from his push to tax the rich as the finance industry and its tax revenue shifts away from New York. But as Mandani tries to mend ties with big business, small business, they are fighting his plan for cityrun grocery stores. Mandani announcing the first will open in the Bronx next year. But Bruce, >> what do you make of that? >> Well, first of all, uh, I knew Ronald Reagan. I worked for Ronald Reagan. Zoran Mandami is not Ronald Reagan. This is so ridiculous that somebody even has to come along and point this out. But I mean, New York City better put its seatelt on because if we've got somebody out there who is saying that, "Hey, I'm the opposite of Ronald Reagan. Let me take his words and reverse them." I MEAN, YOU KNOW WHAT NEW YORK IS IN for right now. You know, the hammer, the bludgeon of communism is going to hit the root of every single business that is right now on its two feet and just knock it down flat. >> You're putting a communist in with the leaders of capitalism. Look, Zoron Mandami has it completely backwards. High netw worth individuals create jobs. They create prosperity. They create economic development. It's not only for the rich people. It's that they help the carpenters, the electrician, the plumbers, the waiter, the waitress, the dry cleaner, the dog walker. When they leave, they take all those jobs with them. They takes the tax revenue out so it'll fall on the middle class. Taxing the rich is a really bad idea. I'm going to see Ron DeSantis later today. And uh he's probably going to endorse Kathy Hokll because he knows if I win, they'll stop coming to Florida from New York. So, >> can we talk about that? >> Sure. >> Cuz one, >> right? Cuz people are leaving and New York has a real problem up its sleeve. The more the mayor comes out and goes after local businesses like a small grocery store or goes after big business like a bank and talks about how the city needs more money from people who pay most of the share of the tax revenue but somehow don't pay their fair share at the exact same time. It scares people. It's got people terrified. And if you're here and you're thinking, gee, do I invest in New York? If I do, I have the money to put down on starting a business or growing it in New York, you got to wonder, is that smart? If I wed myself to this place, is it then just going to target me and come after me because I can't escape and move to Florida? I mean, these are the questions people are asking. This is going to hurt New York City in ways nobody's even talking about. >> Worries is his message is winning because there's that young voter base who's left. The the other voter base that we're talking about that would vote for you went to Florida. So, the votes here that are left have disappeared. How do you then get those votes that are still here when it looks, feels like all the votes that are left are blue voters? >> Well, the blue voters are very disenchanted with Hokll and Mandami. Uh they haven't produced anything. We're number 41 out of 50 states in economic development. The once proud great New York State, the Empire State is at the bottom of economic development. When I talk to young people, we talk about job creation, better jobs, higher paying jobs, better benefits. You know what doesn't create jobs? A cityrun alternative to a private business that the people who run the private business are taxed to pay for. That does not create jobs. That does not help companies innovate. That doesn't mean people are going to be getting hired. The cityrun grocery store is not going to hire everybody. What you really need is a thriving environment for more of these. And you can't get that if you got a city-run alternative to everything where people are demanding it be just as good as the real thing, putting more money in their pocket and when you engage young people and talk to them about our issues and how we're going to solve their problems versus a free bus pass that they didn't even get. In fact, we got a fair increase from Zoron Mandami. They are disenchanted. People are miserable in New York State. >> Common sense Democrats are coming our way. So, uh I think that we are going to have a very, very successful election here in New York State. >> You know why people are disenchanted? No amount of uh cityrun lowcost zerorp profofit grocery stores. No amount of free bus passes will offset over $5,000 a month rent. Look at this. The Corkran rental market report. One-bedroom apartments $5,228 in Manhattan. Two bedrooms $8,300. This is crazy. People cannot afford that. If your food is free and your rent is over $60,000 a year, you're still going to be bankrupt. What do you think about this?