So Mandani wants to have city run grocery stores.
\nLet\u2019s say he gets his wish.
\nGrocery stores run about a 3% profit margin. This is for the big boys: Kroger, Safeway, HEB, etc.
\nThe smaller chains have less buying power and can\u2019t get the gross margins the big guys can so they run 1 to 2% profits. I don\u2019t think NYC is going to get the same gross margin as Kroger.
\nChain grocery stores employ a lot of younger, minimum wage people.
\nNYC stores will have to employ NYC city civil servants with all the benefits attached to being a city employee: Higher wages, gold plated health care, pensions, etc.
\nPretty sure the 1% profit margin just left the building right there.
\nThen there is spoilage \u2013 because those folks living in the \u201cFood deserts\u201d aren\u2019t going to be buying fresh stuff no matter how much the mayor says it is good for them.
\nFinally, as with anything related to NYC, there will also be a ton of graft and outright theft.
\nI predict the stores will run 20-30% in the red
\nThis will be a HUGE debacle. But it might be fun to watch.<\/p>\n","protected":false},"excerpt":{"rendered":"
So Mandani wants to have city run grocery stores. Let\u2019s say he gets his wish. Grocery stores run about a 3% profit margin. This is<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[3210,5,1489],"tags":[1788,1596,1437],"class_list":["post-33887","post","type-post","status-publish","format-standard","hentry","category-chemist","category-current-events","category-guest-contributors","tag-chemist","tag-guest-contributors","tag-socialism"],"yoast_head":"\n