NYC approves $75 million Mercato grocery contract despite $1 million in unpaid store bills

New York City’s Department of Health and Mental Hygiene awarded Mercato a six-year, $75 million contract to expand the “Groceries to Go” program that supplies low-income residents with discounted produce. Over the past four and a half years Mercato received $30.4 million from the city, yet independent supermarkets claim the company has failed to pay more than $1 million for deliveries, leaving stores such as C-Town, Bravo and Key Food with unpaid balances ranging from $4,500 to $36,000.

Owners Anthony Diaz and Jorge Guillen say the shortfall has forced them to seek additional financing and incur debt. Mercato CEO Bobby Brannigan attributes the delay to the city’s slow reimbursements, while a health department spokesperson says all Mercato invoices for fiscal 2026 were paid on time. The city comptroller’s office, headed by Mark Levine, is holding up final approval pending answers to outstanding questions. Meanwhile, the “Groceries to Go” program remains paused, and critics warn the new contract could further strain already struggling independent grocers.