After nearly 40 years of family ownership, Santa Barbara’s Federal Drug pharmacy has officially transitioned into the hands of its own employees.
Located in upper State Street’s Loreto Plaza, the mom-and-pop shop was founded in 1985 by Bill and Alice MacDonald. For decades, the pharmacy served not just as a place to pick up prescriptions but as a cornerstone of community care. When Bill MacDonald died during the COVID-19 pandemic, his daughter, Heather MacDonald, continued running the pharmacy in his place. But as time went on, the business became increasingly difficult to manage.
“We really wanted to carry on for him,” MacDonald said. “He always considered the employees part of his family. This place meant everything to him.”
In early 2024, as the family explored their options, a group of veteran employees came forward with a proposal: They would form a corporation and buy the business themselves. The MacDonalds said yes.
As of April 1, 2025, Federal Drug is officially employee-owned, led by a team of five longtime staffers: Robert Crocker, Cindy Johnson, Martine Perez, Ferdy Sosa, and Maggie Sosa.
“Bill always dreamed of this being a community pharmacy,” said Crocker. “His wife really didn’t want it to go to a big chain. She wanted to see it stay in the hands of people who care — and that’s what we’re doing.”
The pharmacy now employs 24 people and remains committed to its hallmark: deeply personal, one-on-one service. While many businesses have gone digital, Federal Drug remains proudly analog in spirit. The team recently upgraded the decades-old registers for compliance reasons, but the approach to customer care hasn’t changed.
“We still answer every phone call,” said MacDonald. “No automated system. Just a real person on the other end.”
For many longtime customers, that human touch is what keeps them coming back. According to Crocker, only a handful of patrons communicate via email — most still prefer the phone. “We’re doing our best to grow and adapt,” he said. “But service is still our number one priority.”
Inside the pharmacy, memories of Bill MacDonald live on. A photo board featuring him in nearly every image hangs on display alongside old-school pharmacy tools and scales. “We hear him in our heads all the time,” his daughter said with a smile. “So we might as well keep his picture up.”
As large chain pharmacies continue to push out small businesses, Federal Drug’s new chapter is refreshing. It’s a story of legacy, loyalty, and a team that chose to preserve something meaningful — by literally buying into it.
