Government Funded Grocery Store set to close after 5 years
Posted by Chrisc46@reddit | Libertarian | View on Reddit | 27 comments
In 2018, the government of Kansas City, Kansas paid roughly $7 million to build and furnish a grocery store operated by a co-op store from a community roughly 30 miles away. The store opened in 2020 with a goal of creating a welcoming, multi-cultural urban market that offers a hybrid variety of affordable, conventional, local and organic products. Of course, this was coupled with the goal to get WIC and EBT approval from the State.
Unsurprisingly, the store is now set to close after just five years citing financial difficulties.
The original store was founded privately and built through voluntary means in a community with a fair bit of excess private resources. This new one was founded through government market distortions in a low-income community with assumptions that it could operate largely the same as the original store.
In the end, this is just another example of government's inability to obtain a desired outcome through economic control.
Merc to close KC location; Lawrence store won’t be impacted – The Lawrence Times https://lawrencekstimes.com/2025/07/01/merc-to-close-kc/
Disastrous-Sale-5308@reddit
It sounds like this was a community run project and the local community just didn't step up? The seed money was back by the city, but the running of the project was grassroots according to other articles. How is this an argument for government inabilty to control economics?
Chrisc46@reddit (OP)
This location was operated by an employee/customer owned business. Only those who purchase a share are owners. The vast majority of owners do not live in the second location's community.
The issue is that this business would not have opened a second location without the $7 million public investment. The business model simply isn't viable for that location.
However, their existence within the market (although temporary) made the market less viable for alternatives that could actually have long-term success.
In other words, the local government attempted to pick an economic winner but really just spread the loss to their taxpayers.
Disastrous-Sale-5308@reddit
This argument assumes there was competition waiting in the wings—but in many cases, there isn’t. The co-op likely entered a market that other businesses had already assessed and rejected.
In principle, I agree that government shouldn’t prop up businesses just for the sake of it. But this wasn’t about giving a handout to a failing business—it was about addressing a public need the market wasn’t meeting. In many lower-income or low-density areas, traditional grocery chains won’t enter because the margins aren’t attractive enough.
spankymacgruder@reddit
You're the one making assumptions. There are 5+ multinational chain grocery stores within a mile of this location.
Semirahl@reddit
please stop making valid points, sir. this is the reddit libertarian sub and that is not allowed.
Mk1fish@reddit
This guy wants to build grocery stores in the desert.
wp-ak@reddit
The whole point of a govt operated grocery store is that if doesn’t need to be profitable. The goods it sells are already paid for by taxes and there is no profit incentive due to not having shareholders. The concept of any “owners” seems contradictory to the whole point.
The article doesn’t give much information other than the location wasn’t great.
Exciting_Vast7739@reddit
So if it's not sustainable to run a grocery store there, it's not sustainable to run a grocery store there.
End of story, right?
If it was sustainable to run a grocery store there, enterprising folks would have done it without state intervention.
If the only way they can run it is by appropriating funding by force through taxation, it will always need money appropriated by force through taxation.
RedditThrowaway-1984@reddit
It’s not just the margin - it’s the demand. Many of these people don’t want healthy food from a grocery store. Their preferred food comes from McDonalds and 7-11. That’s why those stores are there and a grocery store isn’t.
brettferrell@reddit
If there is a true, viable need a business will fill it. Many communities are losing their grocery stores due to rising costs (largely theft), not because the companies would not like to serve those communities.
T_minus_V@reddit
So it was not actually government run…
Chrisc46@reddit (OP)
That's correct. I never stated it was..
wp-ak@reddit
The concept of any “owners” seems contradictory to the whole point.
wp-ak@reddit
The whole point of a govt operated grocery store is that if doesn’t need to be profitable. The goods it sells are already paid for by taxes and there is no profit incentive due to not having shareholders. The concept of any “owners” seems contradictory to the whole point.
The article doesn’t give much information other than the location wasn’t great.
RedditThrowaway-1984@reddit
Sometimes the economic winner is no one. What people fail to understand is that food deserts don’t exist. What exists are food demand deserts - places where there isn’t enough demand to support a grocery store.
Rustee_Shacklefart@reddit
They will end up giving out debt cards to supplement food stamps.
Tough_Exercise_5242@reddit
To add a possible reason for closure. The property tax bill for that property was $22,822 in 2020 when it started.
The tax bill for 2025 ---- $76,246
ohoneup@reddit
Huh. Maybe raising that number will help.
FuzzyPickLE530@reddit
Yeah, think about all the complex socioeconomic problems we've solved with higher taxes. This is a no-brainer.
Good-Ad-9978@reddit
Live in rochester ny. County had a taxpayer funded restaurant in Charlotte. Went under in 5 years because the private management didn't have to worry about competition or profits. They made out fine and the county taxpayer took the hit. Government sucks at being efficient and productive
Expensive_Tailor_293@reddit
Are you talking about Lakeside Haven accepting SNAP?
77rtcups@reddit
That just seems short sighted. They still lost their jobs. Sounds like the wrong people for that particular job and vision.
Chrisc46@reddit (OP)
Government has zero incentive to be efficient or productive. Largely, both failure and success are excuses for increased Government spending, so why would they spend the effort being successful when they don't need to?
libertarianinus@reddit
Those who dont study history are doomed to repeat it. Thats why Marxists keep targeting the youth because after they grow up and see the real world and how socialism and communism fails every time.
Hench999@reddit
They use flowery language and play a role of being "compassionate." They try to dress up these policies as brand new progressive ideas when they are really just the same failed communist crap practices repackaged with a different color bow. Socialism has proven not work, and this idea of "libertarian" communism where everyone just freely gives up their property to the community pool and lives in houses made of gingerbread where the clouds rain gum drops is a fantasy. That last part is actually far more believable than "libertarian Socialism" though.
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This means they deny the ownership of self, and someone who does not own themselves is a slave.
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wp-ak@reddit
The whole point of a govt operated grocery store is that if doesn’t need to be profitable. The goods it sells are already paid for by taxes and there is no profit incentive due to not having shareholders.
The article doesn’t give much information other than the location wasn’t great.