By Genoa Barrow | OBSERVER Senior Staff Writer

At a time when many other stores are closing their doors, Grocery Outlet locations are popping up all over town. The latest is set to open in Arden-Arcade.

As the Thursday, Aug. 28 opening date approaches, independent owners and operators Keith and Phyllis McDonald Johnson are busy crossing items off their task list.

“It’s been an adventure,” said Phyllis Johnson, who with her husband is juggling merchandise orders, deliveries, on-site crew coordination, and strategizing with corporate marketing strategists.

“We’re going to continue working hard to get this thing done until we can open on the 28th and welcome everyone in.”

Located at 1309 Fulton Ave. in a space previously occupied by a Rite-Aid, the Johnsons said their franchise will bring fresh produce, competitive pricing and new job opportunities to the community.

The couple welcomes people to shop at their new store, offering coupons good for a year. Louis Bryant III, OBSERVER
The couple welcomes people to shop at their new store, offering coupons good for a year. Louis Bryant III, OBSERVER

In preparation for their franchise opening, the Johnsons participated in a yearlong training program with Grocery Outlet, including spending time at stores in Gold River and Citrus Heights, learning the aspects of running a store from other independent operators.

The Johnsons’ previous leadership and well-established commitment to the community helped them stand out among potential franchisees, said Alejandro Garibaldo, Grocery Outlet’s vice president of aspiring operator training and new store growth.

The Johnsons moved to Folsom in January 2006, upon Keith’s transfer from the Walmart Supercenter in Lake Charles, Louisiana, after Hurricane Rita. He served as general store manager for the Folsom Supercenter from 2006-2014. After leaving Walmart, Keith worked for Ross department stores until he left in 2024 for the Grocery Outlet opportunity. Phyllis was just as busy, serving as a financial advisor for a Fortune 500 company and opening and operating several insurance agency franchises before starting her own, the Bay Area Mac Insurance Agency. (The company was named after the reporter’s late parents, Retta and Charles McDonald.)

The couple met and started dating as teens working together at a Southern fast food chain, Bojangles Chicken and Biscuits. The dream of owning a grocery store was planted later, when both worked for a Black-owned grocery store, Chism Trail, in Memphis, Tennessee, observing and learning from the boss, Ray Chism Jr. He also was watching them.

“Keith was a grocery bagger, then promoted to the produce manager,” Phyllis Johnson recalled. “The owner there once told him, ‘You know, one day I may work in your grocery store.’ Thirty-five years later and here we are.”

The new owners aim to directly address the area being a food desert by offering a full-fledged grocery store with a wide selection of healthy and organic products.

“We’re not only bringing in fresh fruit and great products to [a place] that didn’t have that in the area, but we’re also bringing economic prosperity into this,” Phyllis Johnson said. “Most of our people that we hired here at the store come from this neighborhood.”

The store, a former Rite-Aid location, sits on the corner of Fulton Avenue and Hurley Way. Louis Bryant III, OBSERVER
The store, a former Rite-Aid location, sits on the corner of Fulton Avenue and Hurley Way. Louis Bryant III, OBSERVER

Recent job fairs at the Greater Sacramento Urban League and the community-based organization Pivot Sacramento helped fill a range of positions and there’s a waiting list filled with more job seekers.

The store also represents a commitment to generational wealth. It’s operating under the corporation JAWS Inc., named after the Johnsons’ first grandson, Jalen Alexander Webb. He’s just a year old, but the couple says the lessons he’ll learn being exposed to them running a business will help set him up for future success.

“We want to bring Jalen up in this atmosphere, in this retail business, and show him the way,” Phyllis Johnson said.

In Stock

As consumers contend with rising food prices, the Johnsons hope local families will frequent their location and see it for the one-stop shop that it is. Store owners are grappling with increased retail theft, but the Johnsons are optimistic that their strong connection to the neighborhood will lead to community support.

“Being in retail for 40 years, that’s part of doing the business,” Keith Johnson said. “We couldn’t come in here being afraid of what the downfall is. We went in with the ‘upfalls’ completely, and we wanted to basically put a store in a community that meets its needs and we felt like nothing was going to keep us from doing that.”

The store will partner with local organizations like Universal Cafe to donate expired food items. It also will link with a nearby school for healthy food demonstrations and a reading incentive program.

“It’s our responsibility to extend our hand and help any way we can,” Phyllis Johnson said.

Her husband echoed that sentiment.

Keith Johnson is exposing his year-old grandson Jalen Alexander Webb to the business from the ground up. The toddler spends time at the Fulton Avenue store as the family prepares to open later this month. Louis Bryant III, OBSERVER
Keith Johnson is exposing his year-old grandson Jalen Alexander Webb to the business from the ground up. The toddler spends time at the Fulton Avenue store as the family prepares to open later this month. Louis Bryant III, OBSERVER

“We’re here to give back to the community and give back to organizations that are helping others do the things that they need to do to get meals on the table,” he said. “We really want to be a part of that process. Teaming up with these organizations is exciting. It’s a wonderful thing to do, and we’re going to love every minute of serving this community.” 

The first Grocery Outlet opened in San Francisco in 1946. For years, many referred to it as the “canned food store,” as it sold military surplus at deep discounts. Today, billing itself as a “bargain market,” the company boasts name brand groceries and farm fresh organic produce for 40%-70% less than conventional grocery stores.

According to the data company Scraphero, Grocery Outlet ranks second on the list of California’s largest grocery chains with 281 locations and counting. The ranking puts it behind Albertsons Companies (584) and ahead of Safeway (243) and Smart & Final (239). 

The Fulton Avenue store is the first Black-owned franchise in the area. 

“We’re excited,” Keith Johnson said.

Festivities are set to begin at 7 a.m. on Thursday, August 28 with early shoppers getting “perks.” The first 100 customers will receive a gift card for amounts ranging from $5 to $500. 

Customers can also enter to win $1,000 in free groceries. A formal ribbon cutting begins at 10 a.m.

EDITOR’S NOTE:Keith and Phyllis Johnson were featured in Senior Staff Writer Genoa Barrow’s award-winning series, “Relationship Goals” in 2024. To read more about the enterprising couple, visit sacobserver.com/2024/02/for-the-love-of-family.