Santa Barbara’s Federal Drug Pharmacy Now Owned by Its Employees

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.”…

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