Mollie Stone's Closing San Mateo Grocery After 25 Years

Second gourmet grocer to shutter in San Mateo since 2025 amid 'changing market dynamics'.

Jan. 28, 2026 at 12:55pm

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Mollie Stone's Markets, a Bay Area specialty grocery chain, announced plans to close its San Mateo location after 25 years of operation, citing 'changing market dynamics and infrastructure limitations' at the 49 42nd Ave. store. The closure comes just a year after another longtime gourmet grocer, Draeger's Market, shuttered its San Mateo outpost.

Why it matters

The closure of Mollie Stone's San Mateo store is the latest sign of the challenges facing independent and specialty grocers in the region, as they contend with competition from larger chains, shifting consumer preferences, and rising costs. The loss of these longtime community anchors could impact access to natural, organic, and locally-sourced foods for San Mateo residents.

The details

Mollie Stone's, a family-owned grocery chain known for its focus on natural and organic products, said employees at the San Mateo store will be transferred to other locations, including its Burlingame store around 5 miles away. The San Mateo store began discounting items on Tuesday and is expected to close within the next two weeks, according to the company. In early 2025, San Mateo also lost another decades-old gourmet grocer, Draeger's Market, which closed to make way for a new mixed-use development. However, another grocer, Woodlands Market, plans to open on the ground floor of the upcoming downtown San Mateo development, expected to break ground in early 2026.

  • Mollie Stone's San Mateo store began discounting items on Tuesday.
  • Mollie Stone's San Mateo store is expected to close within the next two weeks.
  • Draeger's Market closed in San Mateo in early 2025 to make way for a new mixed-use development.
  • Woodlands Market plans to open in the upcoming downtown San Mateo development, expected to break ground in early 2026.

The players

Mollie Stone's Markets

A Bay Area specialty grocery chain known for its natural and organic products, with a focus on local growers and producers.

Mike Stone

The owner and CEO of Mollie Stone's Markets.

Elliott Stone

The chief operating officer of Mollie Stone's Markets.

Draeger's Market

A decades-old gourmet grocery store that closed its San Mateo location in early 2025 to make way for a new mixed-use development.

Woodlands Market

A grocer based in Marin County that announced plans to open a new location on the ground floor of the upcoming downtown San Mateo development.

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What they’re saying

“We are incredibly grateful to the San Mateo community and to our loyal customers who have shopped with us week after week. Unfortunately, as our lease ends, we reached the difficult conclusion that we could no longer sustain operations at this location.”

— Mike Stone, Owner and CEO of Mollie Stone's Markets

“The San Mateo store began discounting items on Tuesday. While the store does not have an exact closing date, it will most likely close within two weeks.”

— Elliott Stone, Chief Operating Officer of Mollie Stone's Markets

What’s next

Woodlands Market is expected to break ground on its new location in downtown San Mateo in early 2026, potentially providing a new gourmet grocery option for the community.

The takeaway

The closure of Mollie Stone's San Mateo store, along with the previous shuttering of Draeger's Market, highlights the challenges facing independent and specialty grocers in the region as they compete with larger chains and adapt to changing consumer preferences. However, the planned opening of Woodlands Market in the upcoming downtown development offers hope that San Mateo residents will continue to have access to natural, organic, and locally-sourced foods.