Grocery Outlet operates a network of small-format retail stores across multiple U.S. states that deliver extreme value through a "treasure hunt" shopping experience, offering name-brand consumables and fresh products at prices 40–70% below conventional retailers. The company sources excess inventory at steep discounts through long-standing supplier relationships while maintaining flexibility to pursue opportunistic deals, supplemented by private-label staples. Most stores are operated by independent entrepreneurs who serve as small business owners managing local merchandising and community marketing in exchange for approximately 50% of store-level gross profit, a model that aligns incentives, reduces corporate overhead, and enables local decision-making backed by national purchasing scale. Grocery Outlet retains full ownership of merchandise and receives 100% of sales proceeds, creating a recurring revenue stream from both retail sales and commissions paid by store operators across grocery, produce, fresh items, general merchandise and other categories.