San Jose: End of the line for Zanotto’s transit-village grocery store

It seemed like a perfect idea for one of San Jose’s transit villages.

A venerable, locally owned grocery chain would open a small store geared to commuters and the hundreds of residents within walking distance. It would be just the right size for nearby condo and apartment residents — the deli, grab-and-go items, coffee bar and chilled beer would be located just steps inside the front door. No massive square-footage for customers to navigate, no long checkout lines.

Zanotto’s gave it a whirl, opening four years ago near the VTA’s Fruitdale Light Rail Station, close to Meridian Avenue and Interstate 280, and the large Fruitdale Station Apartments complex.

On Thursday, Dec. 22, the experiment will end.

“We gave it our best effort,” said Fred Zanotto, semi-retired co-owner of the chain that’s been family owned and operated since 1976. “It just didn’t work out for us.”

Fruitdale manager and co-owner Hanna Tibbils said it was worthwhile for the company to experiment with a small-store format, and she appreciated the neighborhood regulars.

Outside issues might have ultimately doomed the store, said David Taxin, a partner with Meacham/Oppenheimer, a commercial real estate firm.

“Zanotto’s has proven itself as an experienced and successful grocery store operator for decades,” Taxin said. “They know what they are doing.”

A pair of primary culprits may have been behind the store’s demise, in Taxin’s view. “The pandemic and the location were probably big factors in what happened here,” he said.

Insufficient housing also might have hobbled the store’s performance, Taxin said.

“With a grab-and-go format, you have to be supported by a lot of residential nearby,” Taxin said. “They probably needed a lot more foot traffic than they got.”

Tibbils noted that all of her employees who want to transfer to Zanotto’s other, larger stores — the Foxworthy and Rose Garden ones in San Jose and the Sunnyvale location — will be able to do so.