From the Super Mario Wiki
Gramma's Place was a shop located in Toad Town during the events of Mario & Luigi: Partners in Time. After the Shroobs attack Town Toad, they managed to abduct many of the citizens and destroy most of the buildings in town. However, Gramma Red and Gramma Green managed to avoid the aliens by hiding behind the counter of their store. Later on in the game, Mario, Luigi, Baby Mario, and Baby Luigi find the two Toads hiding. Gramma Red and Gramma Green will then sell their wares to Mario and company. Despite their shop being heavily damaged, Gramma Red and Gramma Green have many goods, including badges and regular items.
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