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.
The hot-dog chain offers a vanilla soft-serve flavor served in either a sugar cone or cup. It will also use the soft serve in its vanilla, salty caramel and Dutch chocolate milkshakes.
Dog Haus operates two company-owned restaurants in Pasadena and has eight franchised stores in California and Colorado, with plans to open more than 100 franchised locations.
Revolving Doors
Dick’s Sporting Goods will be opening a store in Glendale next month. … Italian luxury brand Salvatore Ferragamo reopened its Beverly Hills flagship this month with a new design by architect William Sofield. … Vietnamese and French fusion restaurant chain 9021Pho in Los Angeles completed raising $3 million from John Morgan, chief executive of Winmark Corp., who plans to help the company develop a franchise model. … Online shoe company Sole Society in Culver City this month opened its first brick-and-mortar store, at Santa Monica Place. … Luxury hotel Peninsula Beverly Hills closed its fine-dining restaurant Belvedere this month for a complete remodel. It will reopen in December with a new interior and menu, and an expanded outdoor terrace. … Los Angeles International Airport will be adding four dining destinations to Terminal 1: Reilly’s Irish Pub, Coffee Bean & Tea Leaf, California Pizza Kitchen and Deli & Co. Locations are expected to open progressively, starting later this year. … Sushi restaurant Sugarfish opened its Hollywood location last month at the redeveloped Columbia Square building.
At Your Service
International Coffee & Tea, the Miracle Mile parent of Coffee Bean & Tea Leaf, has named John Fuller chief executive. Fuller previously served as chief executive of Johnny Rockets Group Inc. Coffee Bean also announced that it will be opening more than 700 locations in China through a partnership with South Korean retail company E-Land.
Staff reporter Subrina Hudson can be reached at [email protected] or (323) 549-5225, ext. 251.
