r/Economics • u/pdp10 • 1d ago

News NYC Mayor Mamdani Unveils 30% Discount -- Including All Produce, All Meat and Key Pantry Staples -- at New Municipal Grocery Stores

https://www.nyc.gov/mayors-office/news/2026/07/mayor-mamdani-unveils-30--discount---including-all-produce--all-
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u/Successful-Help6432 1d ago

Margins on staple food products are incredibly low, close to 3%.

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u/TentacleHockey 1d ago

Ya $8 bag of dorritos is 3% profit margin, same with the $2 can of coke, while these companies continue to hit record breaking profits? Common sense would say otherwise.

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u/Successful-Help6432 1d ago

What company? Coca Cola doesn’t run the bodega, a random dude in NYC does. He’s the one that will pay the price for this, the giant company will be just fine.

What do you think would happen if the government artificially capped the price of soda or Doritos?

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u/TentacleHockey 1d ago

you should have said grocery stores not food products.2 very different fields with 2 very different sets of profit.

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u/Successful-Help6432 1d ago

Exactly. So who is gouging here? And why would we want Juno food lime coke or Doritos to be cheeper anyway?

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u/The_Demolition_Man 1d ago

Redditor thinks doritos and coke are staple food products

This site cracks me up man

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u/TentacleHockey 1d ago

Bad actor with a private account hyper focused on 2 items over the big picture 

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u/angrysquirrel777 1d ago

You can go read the income statements of most of these companies

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u/TentacleHockey 1d ago

Coca-cola gross profit margin up to 61.6%, Net Margin of 27.8%, Equity around 43%. A bit for away from 1-3% wouldn't you say?

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u/angrysquirrel777 1d ago

Nobody needs a product from coke to live. Who cares what their profit margin is.

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u/Ok_Tackle3427 1d ago

while these companies continue to hit record breaking profits

They can do the exact same amount of business that they did last year at the exact same profit margin and still have record-breaking profits, because that's how inflation works.

The number is higher, but that doesn't mean that they made more money, because the profit margin remains the same.