San Mateo Draeger’s closing

“We recognize the important role this store has played in San Mateo, and we are thankful for our loyal customers and dedicated employees who have supported us over the years. Our priority during this transition is to provide support to our employees, offering opportunities within other locations where possible,” Draeger’s Market owner John Draeger said in a statement. 

The B Street South mixed-use project was initially approved in 2022, but construction has yet to begin, and an entitlement extension was granted to the developer Lane Partners until December 2026. The new structure is slated to have about 100,000 square feet of office space and 10 below-market-rate units. About 17,000 square feet will also be dedicated for grocery store use, although neither the developer nor city staff have confirmed what store will replace Draeger’s Market. 

The first Draeger’s Market first opened more than 100 years ago in San Francisco and eventually extended throughout the Bay Area.  

“I’m obviously saddened to hear about the closing. It’s been a longtime presence. We did lose Trag’s Market a few years ago, so we are definitely concerned about not having a big market presence downtown,” Mayor Rob Newsom said. “Especially because part of our long-term strategy is … trying to have more people live and work downtown.”

In addition to the Trag’s Market closure a few years ago, Kathy’s Creative Kakes announced its closure more recently. Heidi’s Pies will also be shutting down, Newsom said, noting the closures are not just impacting grocery stores but also mom-and-pop establishments. 

Newsom said the city hopes to support more legacy businesses, especially local grocery and food establishments.

“We hope these businesses reach out to the city before they close to see if we can partner with them or help in some way,” he said.