NEW YORK (AP) — New York City Mayor Zohran Mamdani announced Monday that the city’s planned municipal grocery stores will sell fresh produce, meat, seafood and other essential grocery items at prices 30% below traditional retailers, a cornerstone of his affordability agenda aimed at lowering food costs for residents.

The administration said the discount will apply to all shoppers regardless of income and cover all fresh produce, meat and seafood, along with about 20 additional categories of pantry staples, dairy products and refrigerated goods. Officials said the lower prices are expected to reduce the average household’s grocery bill by about 15%, saving New Yorkers an estimated $90 per month, or roughly $1,000 a year. Prices for core grocery items will be locked in monthly rather than fluctuating week to week.

City officials also issued a request for proposals seeking private grocery operators to manage one or more of the five planned stores. Selected operators will oversee daily operations, including merchandising, staffing, product sourcing, inventory management, food safety and security, while complying with city standards for pricing, operations and labor practices.

The first municipal grocery store is scheduled to open by the end of 2027 in the Hunts Point section of the Bronx, where the administration said 77% of households struggle to afford basic necessities. A second confirmed location is La Marqueta in East Harlem. One store is planned for each of the city’s five boroughs by the end of Mamdani’s first term.

The city has allocated $70 million in capital funding for the initiative, which officials described as a key part of Mamdani’s affordability agenda. The stores will operate through public-private partnerships, with the city setting pricing policies, store design and operating standards while experienced private grocery companies manage day-to-day operations.

According to the administration, grocery prices nationwide have increased 33% since 2019, and nearly 80% of New Yorkers report concerns about rising food costs. Officials said more than 40% of city families struggle to afford food, prompting the city to target neighborhoods with the greatest need for affordable grocery options.

Operators will be required to stock a full range of grocery departments, maintain reliable supply chains and food quality standards, and explore development of an N.Y.C. Groceries private-label brand. They also must provide family-sustaining wages and benefits and agree to labor peace agreements that allow workers to organize without employer interference.

The request for proposals is the latest step in launching the municipal grocery network after the city previously announced the first store locations and sought public input and design proposals for the new grocery brand. Proposals from prospective operators are due Oct. 16, with the city aiming to have the first store open before the end of 2027.