• by Sarah Mahoney  @mahoney_sarah, April 24, 2025

Whole Foods Market is expanding its smaller-format concept in New York City, adding two new Daily Shop locations as it continues to experiment with compact, convenience-focused stores. But even as it leans into growth in urban markets, the grocer is dealing with a very different kind of attention on the West Coast. A California store has been closed by health officials due to a rat and cockroach infestation.

The new New York City locations include a 10,000-square-foot store in the East Village’s StuyTown development and an 8,500-square-foot unit in Hell’s Kitchen. Both offer a full range of fresh produce, meat and seafood, prepared foods, and local specialties, along with Whole Foods’ 365 private-label items. The StuyTown store will also feature a Juice & Java café, with coffee, smoothies, sandwiches, and desserts.

These openings mark the latest expansion of Whole Foods Market Daily Shop, first launched on Manhattan’s Upper East Side last fall. The concept is designed to bring the grocer’s premium positioning — organic, fresh, and local — into smaller, more accessible spaces for everyday convenience.

That premium promise made the news from California all the more jarring. The Santa Clara County Department of Environmental Health recently shut down the company’s Cupertino location, one of the largest in the state and just a few miles from Apple headquarters. According to the San Francisco Chronicle, the closure followed multiple violations. Inspectors found fresh rodent droppings in food prep areas, live cockroaches near kitchen equipment, and unsanitary conditions throughout several departments.

“Earlier this month, the deli and bakery were shut down twice after health officials discovered vermin activity,” the paper reports. Health authorities labeled the infestation “an imminent threat to health and safety.”

The incident underscores the reputational risk brands face when local operations fall short of corporate standards — especially for a chain that’s built its identity around food purity and quality.