A Billionaire’s Feud with New York’s New Mayor

In a surprising turn of events that has captured the attention of New York City’s business community, supermarket magnate John Catsimatidis has been publicly feuding with newly elected Mayor Zohran Mamdani over the latter’s proposal to establish government-run grocery stores. The conflict reached a fever pitch in June when Mamdani, a democratic socialist, won the Democratic primary, prompting Catsimatidis to hold press conferences with bodega owners and even threaten to close his more than 30 grocery stores if Mamdani were elected. The billionaire businessman, whose net worth Forbes estimates at $4.8 billion, didn’t mince words when speaking about Mamdani on FOX News, comparing him to Fidel Castro and dismissing his candidacy as “one big con game.” Catsimatidis even reached out to former President Donald Trump, who publicly defended his “great guy” friend, claiming that Mamdani wanted to “take over” Catsimatidis’ grocery stores. The entire saga reflects the tensions between progressive politics and traditional business interests that have been brewing in America’s largest city.

Following Mamdani’s victory in the mayoral election, Catsimatidis has continued his vocal opposition to the new administration’s plans. “I think a lot of business people are reducing their exposure to New York City,” he told Forbes, revealing that he had initially considered relocating Red Apple Group’s headquarters to New Jersey if Mamdani won. However, after New Jersey voters elected Democrat Mikie Sherrill as governor, Catsimatidis has shifted his focus to what he calls “friendly states,” with Florida emerging as the likely destination for parts of his business. “The key word is a common sense place to do business in,” explained the businessman, who has deep roots in New York. His journey is quintessentially American – having immigrated from Greece as an infant, dropping out of NYU to open his first grocery store in 1971, and building an empire that now includes supermarkets, oil refineries, convenience stores, and extensive real estate holdings. His Red Apple Group, with annual revenue of $7.8 billion, has become the largest supermarket chain in New York City through acquisitions including Gristedes and D’Agostino stores.

At the heart of the dispute is Mamdani’s ambitious plan to establish city-sponsored grocery stores in each of New York’s five boroughs. These proposed stores would operate under significant advantages: they would be exempt from paying rent or taxes, would purchase directly from farmers and small businesses at wholesale prices, and would have no profit expectations. In his victory speech, Mamdani framed the initiative as a response to rising food costs, stating, “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.” The proposal represents a direct challenge to traditional grocery businesses like Catsimatidis’, which must contend with commercial rents, taxes, and the expectation of profitability – all while operating in a competitive market.

Catsimatidis contends that his grocery business is already struggling in the current economic and social climate. “We don’t have any profit margins,” he claimed, noting that his stores have been losing money for “at least two years.” The billionaire points to several challenges facing retailers in the city: “Shoplifting is up to an all-time high. A lot of stuff is being closed up, which means that it’s not easy for people to shop, so sales are down.” The prospect of competing against government-subsidized grocery stores represents an existential threat to his business model. “Can you imagine a tax-free supermarket that pays no commercial rent tax, no sales tax… I mean, how do you compete against that?” Catsimatidis lamented, adding the resigned observation that “You can’t fight city hall.” While he hasn’t determined exactly how his business will respond if city-run stores undercut his prices, Catsimatidis is “sure” he will need to reduce his workforce, which currently numbers a few thousand employees.

This isn’t Catsimatidis’ first foray into New York City politics. In 2013, he ran for mayor in the Republican primary but lost the nomination to Joe Lhota, who was subsequently defeated by Democrat Bill de Blasio. His frustration with the current business environment is palpable: “The way things are right now, we pay taxes on our taxes. I mean, it’s out of control. No wonder people are yelling and screaming that prices of food are too high.” The sentiment reveals the complex challenge facing city leaders – how to address affordability concerns for residents while maintaining a business climate that supports private enterprise and employment. The tensions between these competing priorities have been brought into sharp relief by Mamdani’s election and Catsimatidis’ very public pushback.

Despite his threats to relocate aspects of his business empire and his vocal opposition to Mamdani’s policies, Catsimatidis maintains a connection to the city where he built his fortune. “I just hope he keeps the quality of life going in the city and does not cut the New York Police Department down,” he said, revealing that beneath the business calculations and political posturing lies a genuine concern for the city’s future. As this drama unfolds in the coming months, it will serve as a microcosm of larger national debates about the role of government in the economy, the challenges of urban affordability, and the changing relationship between progressive politics and traditional business interests. For now, both the billionaire grocer and the socialist mayor are staking out their positions in what promises to be one of New York City’s most consequential policy battles.