A policy idea that first gained traction in New York City is now finding support in San Francisco.

As New York City Mayor Zohran Mamdani moves forward with plans for city-owned grocery stores — a key campaign promise aimed at lowering food costs — Supervisor Bilal Mahmood is proposing a broader effort in San Francisco.

“Mayor Mamdani definitely led the way in showing comprehensive solutions and innovative, bold ideas for addressing food insecurity,”  Mahmood said. “I’m definitely inspired by his leadership.”

Mahmood on Tuesday is expected to announce two ballot measures for November. One would create a fund that could receive city dollars and private philanthropic contributions to subsidize grocery stores and keep food prices affordable. The other would impose taxes on chain corporations that leave grocery stores and pharmacies intentionally vacant — so-called “zombie stores (opens in new tab).”

San Francisco has struggled with the closure of grocery stores and pharmacies in recent years, leaving some neighborhoods as “food deserts” without easy access to fresh food and essential goods. Meanwhile,grocery prices are rising amid the city’s broader affordability crisis. The city opened a free grocery store in Bayview in 2024 for low-income residents.

“Everyone deserves access to fresh food, prescription medications, and everyday essentials close to home,” Mahmood said.

The cost of the proposal remains unclear. Mahmood, who said a report from the city controller is expected soon, estimated that tax revenue generated by the measure would amount to several million dollars annually.

Mamdani has gradually rolled out (opens in new tab) details of his grocery-store proposal in New York, though the concept has drawn criticism from those who question whether a handful of government-backed stores can meaningfully affect food affordability in a big city.

Mahmood’s proposal goes beyond city-backed grocery stores. The fund could also help corner stores convert into full-service grocery stores with fresh food and allow the city to purchase vacant buildings and lease them at below-market rates to grocers willing to keep prices low.

In addition to the two ballot measures, Mahmood plans to introduce two related ordinances at the Board of Supervisors. One would establish tax credits for pharmacies and grocery stores to encourage them to open for business; the other would create a task force to determine how the money from the fund would be allocated.

To place the ballot measures before voters, Mahmood needs support from three other supervisors. He said he has commitments from Supervisors Myrna Melgar, Stephen Sherrill, Danny Sauter, and Chyanne Chen. He needs another vote to pass the ordinances.

The business community may have concerns.

“Everyone agrees San Francisco needs more grocery stores and pharmacies,” said Chris Wright, senior VP of Advance SF, a group representing major corporations (opens in new tab). (opens in new tab) “The question is about whether a new tax will bring them back, or whether we should focus more on addressing the underlying reasons those businesses left in the first place.”

But Ademola Oyefeso, an international VP with the United Food and Commercial Workers, a group that advised on New York City’s policy, said the measures would boost both food access and employment.

“San Francisco has an opportunity to bring affordable groceries back to neighborhoods and create good-paying, union jobs for communities,” he said.