In July, nearly all Save A Lot stores in Chicago closed their doors after being supported by municipal millions as part of a response to food deserts in the city’s south and west sides. The operator, Yellow Banana, was left with no option to continue operations following the termination of its franchise agreement, while seven locations ceased functioning altogether. The closures mark another failure in the city's attempt to address food insecurity through public funding. The city had invested approximately $13.5 million in tax dollars, part of a broader $26 million package, to renovate and reopen the stores in neighborhoods with limited access to fresh food. Despite these efforts, the stores shut down within just a few years of operation. Officials cited several factors contributing to the closure, including a sharp decline in purchases via the Supplemental Nutrition Assistance Program (SNAP), financial difficulties faced by the operator, and the unexpected death of the company’s executive director in April. Similar outcomes have been observed in other parts of the country. For instance, a Whole Foods store in Englewood, Illinois, also closed despite receiving an estimated $11 million in city assistance through the Tax Increment Financing (TIF) system. The project proved economically unsustainable, leading to its eventual shutdown. Critics argue that such results were predictable. Bryce Hill of the Illinois Policy Institute noted that while these projects aimed to improve food security, they rarely achieve the promised outcomes when funded by public money. Business association representatives warn that artificially lowering prices through taxpayer funds ignores basic market principles and that similar approaches elsewhere have not yielded positive results. Instead of direct government involvement in retail, critics suggest removing obstacles that hinder private businesses. These include high property taxes, complex licensing requirements, labor regulations, and an overall unfriendly business environment. In Chicago and Illinois, property tax burdens on commercial spaces rank among the highest in the United States. This situation occurs amid ongoing debates over the role of municipal grocery stores in addressing food deserts. New York City Mayor Eric Adams continues to advocate for the introduction of city-run grocery stores, proposing a model where the city would provide ownership and financial support while private operators would manage them under conditions that include lower prices for essential goods. Critics caution that Chicago’s experience demonstrates how quickly such initiatives can fail, even when backed by substantial public investment. Currently, Chicago officials are seeking new operators for the closed locations and are exploring alternative models, including potential public markets. For now, however, the reality remains that stores intended to solve food insecurity have closed, and taxpayer money has been spent.
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