Grocers like Haggen Inc. might have had a tough time expanding into Los Angeles, but Emeryville chain Grocery Outlet Bargain Market hopes to be a mainstay.

The retailer announced last week that it will be opening 14 stores in Los Angeles and Orange counties starting in December.

Scott Burns, Chris Wilson, Shauna Mattis and Kien Tsoi of Jones Lang LaSalle’s retail real estate team in Los Angeles brokered the deal.

Grocery Outlet negotiates with manufacturers to purchase overstock and surplus products, and it sells those items at a discount of up to 60 percent compared with traditional supermarkets. It sells name brands such as Kraft, Tide, Tyson, Amy’s Kitchen and Naked Juice.

Shoppers can expect items such as frozen foods, produce, beer and wine, health and beauty products as well as household goods.

Even with bargain prices, Grocery Outlet is entering a grocery market that’s among the most competitive in the country. Haggen, a Washington state chain, bought dozens of Southern California Vons and Albertsons locations only to file for bankruptcy months later. Another recent entrant, Fresh & Easy, has seen only limited success in the area, announcing in March that it would close 30 Southern California stores.

Of course, that competitive environment is also a potential opportunity for Grocery Outlet: At least nine of its 14 Southern California locations will be in former Fresh & Easy stores, and a JLL spokesman said other locations are likely to be in former grocery stores.

Cool Dog

Things are getting cooler for Pasadena fast-causal chain Dog Haus.

The gourmet hot-dog concept linked up with Fosselman’s Ice Cream Co. of Alhambra this month to offer diners the latter’s soft-serve ice cream.

It’s the first time Fosselman’s has made a soft-serve version of its premium ice cream since the company’s founding in 1919.

The new treat will be available at all 10 Dog Haus locations.

Hagop Giragossian, who oversees menu operations for Dog Haus, said the company first served Fosselman’s at its original Hill Street location when it opened in 2010.

“This will be a first for us in terms of introducing a whole new product from our hometown to all our restaurants,” he said. “It’s exciting to be able to bring something that’s so specific to Los Angeles to communities beyond our county’s border – particularly as we continue to franchise and expand throughout the U.S.”

John Fosselman, co-owner of Fosselman’s, said the dessert shop is looking forward to introducing its ice cream in a new form as well as expanding its relationship with Dog Haus.


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