New York City supermarket billionaire John Catsimatidis is reassessing his business plans following the recent election of Zohran Mamdani as mayor. Initially, Catsimatidis had declared intentions to relocate his business to New Jersey if Mamdani, who campaigned on the proposal of establishing affordable city-run grocery stores across the five boroughs, won the Democratic primary. The election outcome has prompted Catsimatidis to rethink his strategy.
In June, after Mamdani's primary victory, Catsimatidis took a strong stand against the mayor-elect. He held a press conference alongside local bodega owners, threatening to shut down his more than 30 grocery stores should Mamdani win the election. During his appearance on FOX News, he expressed his concerns, stating, “He’s not qualified... this is silly,” and likened Mamdani to Fidel Castro. Catsimatidis emphasized his belief that Mamdani’s plans were detrimental to the city’s business environment, declaring it “one big con game.”
President Trump, a friend of Catsimatidis, also voiced his concerns about Mamdani’s impact on local grocery stores, stating, “Mamdani actually wants to take over the grocery stores of John Catsimatidis, who’s a great guy, a rich guy.” Trump's comments reflected the apprehensions shared by Catsimatidis regarding the future of his business under a Mamdani-led administration.
With Mamdani officially elected as mayor, Catsimatidis is now vocalizing his anxiety over the business climate in New York City. “I think a lot of business people are reducing their exposure to New York City,” he told Forbes. The billionaire, whose Red Apple Group generates approximately $7.8 billion in revenue and includes an oil refinery and around 400 convenience stores, had previously considered moving his headquarters to New Jersey. However, after New Jersey's recent election results, which saw Democrat Mikie Sherrill secure the governorship, he is looking towards “friendly states” for potential relocation, with Florida emerging as a frontrunner.
John Catsimatidis’s journey began when he immigrated to New York City from Greece at just six months old. He dropped out of New York University during his senior year to open his first Red Apple grocery store in 1971. By 1975, he had expanded to ten stores and was generating $1 million in annual revenue. Today, with the acquisition of Gristedes supermarkets in 1986 and a recent controlling stake in D'Agostino stores, Catsimatidis's Red Apple Group stands as the largest supermarket chain in New York City, primarily operating in Manhattan.
Mamdani's proposal for city-sponsored grocery stores aims to combat soaring food costs by offering groceries at wholesale prices without the burden of rent or taxes. In his victory speech, he highlighted the struggles of everyday residents: “Whether you are…a single mom still waiting for the cost of groceries to go down, or anyone else with their back against the wall. Your struggle is ours, too.”
In response to Mamdani’s plans, Catsimatidis expressed worries about the viability of his business if city-run stores begin undercutting prices. He noted the challenges his stores face, stating, “We don't have any profit margins,” and cited rising shoplifting rates as a contributing factor to declining sales. Catsimatidis, who employs thousands, acknowledged the possibility of workforce reductions if they are unable to compete with tax-exempt supermarkets. “Can you imagine a tax-free supermarket that pays no commercial rent tax, no sales tax… how do you compete against that?,” he questioned. “You can’t fight city hall.”
Having previously run for mayor in the 2013 Republican primary, Catsimatidis lost the nomination to Joe Lhota, who subsequently lost to Democrat Bill de Blasio. Reflecting on the current state of affairs, he criticized the excessive tax burdens on businesses: “The way things are right now, we pay taxes on our taxes. I mean, it's out of control,” he remarked, addressing the rising concerns about food prices.
Despite his criticisms of the new administration, Catsimatidis still holds a fondness for New York City. He hopes that Mamdani will prioritize maintaining the city's quality of life and refrain from cutting the resources of the New York Police Department.