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A young woman is a witch or has witch-like abilities.

When her grandmother goes missing she must step in to run the shop and realizes that granny also protected the lesser supernaturals in the area.

A group of men who change into dragons (lords or princes), all handsome and arrogant, are going to raze the city, but one becomes the witch's ally (and love interest) in the end.

Granny turns up at the end. I want to say the story is set in a city in Canada, but it could also be another north-midwestern urban setting.

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That's The Enchantment Emporium by Tanya Huff. It's set in Calgary. There's also a sequel, The Wild Ways, focusing on Charlie (a cousin of Allie, who's the main character of the first book). It's set primarily in Cape Breton.

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