Not Zo cheap.

Mayor Zohran Mamdani’s signature municipal owned grocery store plan could cost $206 million in its first few years, according to an analysis from GOP State Comptroller candidate Joseph Hernandez.

Hernandez’s analysis breaks the cost down into three major categories: $70 million for construction costs, a $106 million project in operating costs and an estimated $30 million in lost revenue from nearby bodegas and grocery stores over the next three years.

“We know City Hall is spending $70 million just to build these stores. What happens in year one, year two and year three? Who keeps paying for the subsidies? And what happens to the small businesses forced to compete against their own government?,” Hernandez said at a press conference outside a Manhattan bodega.

Hernandez was joined by the Multicultural Business Coalition, who recently filed a lawsuit challenging Hizzoner’s grocery store program over fears it would pose unfair competition to local stores.

“We don’t want the same thing to happen to the community as when Costco opened here and [shops] went out of business,” store owner Diana Larrazabal said at the Wednesday press conference. 

The city has already acknowledged that the stores will cost $70 million to build. The report, meanwhile, did not explore how much revenue the city stores might bring in or if it would be enough to cover construction and operating costs. Mamdani’s camp has also not made any estimates on what returns the stores might see.

The report also didn’t look into how much savings might come to local consumers who don’t have to play bodega or grocery store prices, and how that might affect the local economy. Neither has the city.

The report did find, however, that roughly 450 local bodegas and grocery stores could face an average loss of around $22,250, eating into an already slim annual profit margin of around $30,000 to $40,000.

Hernandez, a former Wall Street exec, also warned that up to 67 local stores could face closure due to the subsidized competition.

“My family experienced communism first hand. I know where the belief that the government can run businesses better than entrepreneurs leads,” the son of Cuban refugees said.

The analysis utilized industry benchmarks to estimate the cost but due to variables still unknown about how the program will fully function, ranging from $116 million on the lowest and $279 million at the highest estimates. 

A rep for City Hall did not immediately respond to a request for comment. 

One expert said Hernandez’s estimates of the new store’s costs looked accurate, and might even been on the conservative side.

“Based on my experience in the NYC supermarket industry, his underlying operating assumptions are generally within a reasonable range. Some assumptions are on the low side – with the expected harm to private operators even greater,” said Avi Kaner, former co-owner of Morton Williams supermarket chain who is now a consultant.

Only two out of the five promised stores offering 30% discounts on core goods have specific locations finalized so far with the first Hunt’s Point location not opening until at least 2027.

$30 million of the $70 million fund for building the locations has already been burned through on constructing the Manhattan location — which isn’t slated to open until 2029. 

“Now government wants them to keep paying those taxes while using their own money to subsidize their competition,” he said. “That is an irresponsible use of taxpayer dollars.”

Hernandez is challenging longtime Democratic Comptroller Thomas DiNapoli in the Nov. 3 general election.