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That makes sense. Two questions though:
I would say one of the main benefits would probably be the better access in less profitable areas that the other commenter mentioned.
Run as a public service without the motivation of profit, the funding would come from the city or state taxing residents.
More than likely, if the service does turn a profit, it would likely be split between the service ans a slush fund for the city. This can be a negative though, as it is likely the city given budget would be cut since profits would make up the gap.
I don’t think profit works like we think it does… if king soopers, or farm fresh or some other giant grocery store does not make more and more sales every year, they consider this unprofitable even if the store is making money…
Profits are excess money that go back to the executives and shareholders…
With no shareholders all of that money goes or would go back to the community.
A city run grocery store could prioritize locally grown produce and local meat for example, and since they aren’t worried about constantly making more and more money in the short term, i assume it could boost the local economy in the exact opposite way that large corporate chains leech money out of communities. The better pay and benefits that city workers make alone would contribute to that.