John Catsimatidis, billionaire owner of Red Apple Group and a dominant force in New York City’s grocery market, in an interview with Forbes threatened to move his business out of New York following the election of Zohran Mamdani as mayor.
Catsimatidis, whose estimated net worth is $4.8 billion, cited the mayor-elect’s plans to introduce city-run grocery stores as a key reason for reconsidering his longstanding commitment to New York.
The billionaire warned of potential workforce reductions and named Florida as a likely new base for his operations if economic pressures persist under the incoming administration, he told Forbes.
Newsweek has reached out to Catsimatidis by email Saturday morning for comment.
Why It Matters
Catsimatidis’s statements highlight deep tensions between New York’s private sector leaders and the city’s new political direction.
Mamdani’s proposed city-sponsored grocery stores—which would operate without paying rent or taxes—could fundamentally reshape competition, potentially threatening the viability of private enterprises like Gristedes and D’Agostino’s, both owned by Catsimatidis.
Business leaders say that such policies risk accelerating an exodus of companies, diminishing the city’s commercial tax base, and ultimately affecting services and jobs essential to millions of New Yorkers.
What To Know
Mamdani, 34, became New York City’s mayor after running as a democratic socialist on a platform that promoted city-run grocery stores as a remedy for food deserts and high grocery costs. These stores would operate without rent or property tax obligations and aim to sell at wholesale prices, passing on savings to customers.
The mayor-elect also pledged broader public service investments supported by proposed tax surcharges on high earners and corporations.
Throughout the campaign and after the election, Catsimatidis has lambasted Mamdani’s agenda.
He said that city-operated, tax-exempt grocery stores would create unfair competition—signaling that unless conditions improve, he might relocate operations to states with a “friendly” business climate, flagging the Sunshine State as a prospective destination, according to Forbes.
Catsimatidis previously threatened to move Red Apple Group’s headquarters to New Jersey but reconsidered after Democrat Mikie Sherrill was elected as its governor this week.
The billionaire is now considering moving to Florida because of its lower tax burden.
Facing declining sales and increased shoplifting—which he attributed to current city policies—Catsimatidis said profitability has suffered for two years, making layoffs and changes to operational scale more likely, the New York Post reported.
Other New York business leaders share Catsimatidis’s apprehensions, with several reportedly considering curtailing investments or shifting out of the city. Bill Ackman, a notable New York businessman, warned that “it only takes a handful of successful people to leave to decimate the city’s tax base.”
Mamdani’s earlier advocacy for defunding the NYPD in 2020 was a focus of Catsimatidis’ criticism, although the mayor-elect later clarified that his comments were made in response to the murder of George Floyd and has since promised to keep police staffing and budgets intact.
Mamdani’s fiscal policy includes an extra 2 percent income tax on individuals earning more than $1 million and a corporate tax increase to match New Jersey’s rate, expected to raise $9-10 billion annually for expanded public services.
What People Are Saying
John Catsimatidis, Red Apple Group founder, told Forbes: “We don’t have any profit margins…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.”
President Donald Trump previously said, per Forbes: “[Mamdani] actually wants to take over the grocery stores of John Catsimatidis, who’s a great guy, a rich guy. He actually called me the other day, he’s concerned his stores are going to be taken from him, and they won’t be run like John runs them, believe me, he runs a good operation.”
A spokesperson for the National Grocers Association said in a statement on Wednesday, per Fox Business: “We urge public officials at all levels of government to direct resources toward enforcing the Robinson-Patman Act, cracking down on price discrimination and monopolistic leverage…to empower independent grocers and strengthen food ecosystems more sustainably than launching government-run stores.”
New York City Mayor-elect Zohran Mamdani said in his victory speech on Tuesday: “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.”
What Happens Next?
Catsimatidis has not announced any definite timeline or steps for relocation or layoffs but indicated ongoing evaluation of business operations in light of the new administration’s policies.
The Mamdani administration is expected to move forward with its pilot program for city-run grocery stores, reallocating support and budget decisions through 2026.
As both sides weigh their options, the possibility of court challenges or legislative pushes from business coalitions remains. Stakeholders will closely monitor effects on private grocery chains, jobs, and the overall cost of living in the city.