San Francisco Supervisor Bilal Mahmood yesterday rolled out the Affordable Groceries Act, a local plan aimed at slowing supermarket closures and easing food costs for residents. The proposal would set up a public fund to subsidize grocery operators or launch city-backed stores, levy new taxes on corporations that shut down outlets while hanging on to their leases, and speed approvals so new grocers and pharmacies can open more quickly. Mahmood is pitching the package as a nuts-and-bolts answer to rising food insecurity in neighborhoods that have watched their full-service markets disappear.
Inside Mahmood's Grocery Rescue Playbook
At Tuesday's Board of Supervisors meeting, Mahmood described a plan that would tax companies that close stores but keep the leases, then use that money to seed a fund that could support grocery operations or buy and lease vacant sites to new operators, according to NBC Bay Area. "It could be partnering with a food bank to take over one of these vacant lots," Mahmood said, casting the act as both an immediate subsidy and a longer-term way to clear hurdles for neighborhood stores. Supporters also say the measure would speed up permits and offer tax credits meant to lure grocers and pharmacy operators into underserved pockets of the city.
Borrowing A Page From New York City
Mahmood told reporters he took inspiration from policies now rolling out in New York City and wants a San Francisco version tailored to local conditions, according to The San Francisco Standard. The proposal would place two questions on the ballot, one to create the grocery fund using city dollars and philanthropic contributions, and another to slap penalties on so-called "zombie" storefronts that sit empty under long leases. Related ordinances would establish new tax credits and a task force to steer how the money is used. The Standard notes that the city controller is expected to estimate potential revenue, yet the overall price tag and precise funding mix are still uncertain.
Fillmore And Bayview Left Holding Empty Carts
Backers say the idea follows a series of bruising closures. Safeway's Fillmore store shut its doors in February 2025, according to Mission Local, and Lucky's Bayview Plaza location closed last November, according to Mission Local. Residents and service providers say those exits have deepened food access gaps for seniors, families without cars and households that rely on CalFresh. Supporters picture the fund helping corner stores add fresh produce, backing grocery co-ops or using vacant parcels to bring in full-service markets.
Wallet Watchers And Skeptics Weigh In
Some economists and business groups are questioning how far a handful of city-backed stores can really move prices across San Francisco, and whether a vacancy tax alone can tackle deeper pressures like theft, labor costs and sky-high commercial rents. Enrico Moretti, a UC Berkeley economist, told The San Francisco Standard that many low-income residents already receive CalFresh benefits, and that any city program would need to be tightly targeted to reach those who are most in need. Local business organizations have urged officials to pair any new incentives with broader changes that make operating a store in the city more sustainable in the long run.
SNAP Squeeze Raises The Stakes
City officials and food-bank leaders also point to recent federal changes to SNAP rules and waiver standards that have tightened work and exemption requirements this year. They warn that those shifts could shrink the number of people eligible for benefits and make local affordability efforts even trickier, according to reporting in Newsweek and analysis from the Center on Budget and Policy Priorities. Local leaders argue that federal tightening is putting more pressure on neighborhood-level fixes like Mahmood's plan.
Sticker Shock In The Aisles
Recent data backs up what shoppers are seeing on their receipts. Nationally, the U.S. food-at-home index has risen by roughly 2.7 percent year over year in recent months, according to the Bureau of Labor Statistics, meaning basic groceries are eating up a little more of every paycheck. In the Bay Area, a San Francisco Chronicle price survey found wide swings between stores and products, with some pantry staples spiking while others dipped, a reminder that any serious attempt at grocery affordability will have to contend with a messy and uneven price landscape.
Ballot Battle On The Horizon
If the Board of Supervisors agrees to move Mahmood's proposals forward, the measures will land on the November general election ballot for voters to decide, NBC Bay Area reports. Mahmood will need support from additional supervisors to push the ordinances through City Hall before they can be certified, and the details of the plan, including its cost and design, are expected to draw plenty of debate in the weeks ahead. For now, the Affordable Groceries Act has forced a concrete policy proposal into a growing citywide debate over how to keep food affordable and grocery stores open in San Francisco's hardest-hit neighborhoods.
