NEW YORK CITY — As Democratic Socialist Zohran Mamdani surges to the front of New York City’s mayoral race following his historic primary victory, prominent figures in business and real estate are sounding the alarm, warning that his radical proposals could cripple the city’s economy and chase away its wealth base.
From government-run grocery stores to punitive housing regulations and higher taxes on corporations and the wealthy, Mamdani’s progressive platform is drawing fierce criticism from two of New York’s most recognizable business leaders: Stew Leonard Jr., CEO of the regional grocery empire Stew Leonard’s, and Dottie Herman, Vice Chair of Douglas Elliman and one of Forbes’ wealthiest self-made women in real estate.
“You’re in a street fight if you get into the food business,” said Leonard in an interview with Fox News Digital. “You gotta be in there with sharp prices, fresher product, friendlier people… Can the government do that? I don’t know.”
Leonard, who operates eight food stores and eight wine and spirit outlets across the Tri-State area, questioned the feasibility of Mamdani’s city-run supermarket proposal, which aims to sell food at wholesale prices. The idea is part of a broader vision that includes a citywide rent freeze, construction of 200,000 affordable units over ten years, and tighter enforcement on “bad landlords.”
“It’s seven days a week. Weekends are the busiest. If you’re paying $200 to $300 per square foot along Second Avenue, you need serious volume to make it work,” Leonard added. “Margins in food are razor-thin. Everyone eats, yes, but it’s still one of the toughest industries in the country.”
For Dottie Herman, the implications go beyond groceries—she sees Mamdani’s economic approach as an existential threat to the city’s future.
“I never talk about politics, but I am talking now because I really don’t want to see New York destroyed,” Herman said. “I believe with every breath of me, that if he gets in, we will be in a socialized country.”
Citing rising fear among developers and property investors, Herman shared that some clients are already reconsidering multimillion-dollar deals out of concern for punitive taxes and hostile business conditions.
“I’ve had people call me asking if they should cancel contracts on development sites in New York City,” she said. “People are scared. You’re going to discourage anyone from investing in rental property, and values will fall. That’s what happens when you tell people, ‘We’ll just take it from the rich.’”
Mamdani, who currently represents Astoria and Long Island City in the State Assembly, gained national attention after winning more votes in the primary than any candidate in the city’s history. His campaign site outlines a platform that includes raising the corporate tax rate to 11.5% and implementing a 2% flat tax on the city’s wealthiest residents—moves that would require state legislative approval and signoff from Gov. Kathy Hochul, who has expressed concern about affordability and capital flight.
Mamdani’s platform also pushes for public control of grocery access, rent freezes, and an aggressive reworking of landlord-tenant laws—all in the name of housing and food equity.
While progressive circles and some younger millionaires have cheered his vision, established business figures worry his policies will bring economic instability, capital outflow, and unintended market disruption.
“The key to this business is freshness,” Leonard added. “Are you going to eliminate dyes, hormones, sugar, and antibiotics from your entire government inventory? That’s what I’ve done. But that drives up costs.”
With New York’s real estate market already facing tight inventory and slowing sales volumes, Herman warned that Mamdani’s proposed crackdown on landlords and tax hikes could lead to a broader investment freeze.
“If people can’t make money here, what business will come to New York?” she asked. “America is about the ability to grow and succeed, no matter where you start. That dream dies if the rules become punish-the-successful.”
Herman also revealed that a number of business owners are organizing political fundraisers to counter Mamdani’s momentum, signaling growing concern in the city’s economic elite.
The crowded mayoral race now pits Mamdani against rivals like former Governor Andrew Cuomo and incumbent Mayor Eric Adams, raising speculation about whether the two centrist contenders might team up to create a unified front against the socialist frontrunner.
“I think one of them has to step aside for the other,” Herman said. “Because if not, the vote splits, and we hand this city to someone who doesn’t understand how it actually runs.”
Leonard, for his part, said that Mamdani’s victory would make him rethink expanding in New York City.
“I’d struggle to open five new stores here right now,” he said. “It’s a real challenge—and this would only make it harder.”
Despite the controversy, Mamdani’s campaign did not respond to a request for comment.
