San Marcos Opens Largest H-E-B to Address Food Access Gaps

Residents on the east side of Interstate 35 in San Marcos have long faced limited options for purchasing groceries. The city opened its largest H-E-B location on October 7 to address this gap, providing a full-service store for communities that previously had to travel longer distances for basic food needs.

The 114,000-square-foot facility at 1074 E. McCarty Lane broke ground on November 4, 2025. The project represents an estimated $53 million capital investment in the city. H-E-B has created more than 400 positions, including approximately 212 full-time and 238 part-time jobs.

Jeff Martinez, the general manager for the new location, stated that the store is designed to reflect the community it serves. He noted that the company included fresh food, quality products, and convenient services to meet local expectations. The store also features the city’s first True Texas BBQ restaurant, which serves all-natural meats smoked in-house over Texas oak wood.

Kathy Ham, H-E-B’s senior vice president for the Central Texas region, described the new store as a gesture of gratitude for 71 years of customer loyalty. She said the company aims to deepen its roots in San Marcos and continue serving the city as a home base.

City officials have supported grocery development for several years. On May 7, 2024, the San Marcos City Council adopted a resolution to offer tax incentives to developers. This initiative responded to concerns that low-income residents living more than a mile from a SNAP-authorized retailer face barriers to accessing affordable food.

According to the Central Texas Food Bank, 20.3% of children in Hays County were identified as food insecure. The overall population food insecurity rate in the county stands at 17.8%. The new H-E-B location is intended to alleviate these access struggles for residents in the city's growing eastern sector.

The city agreed to provide H-E-B with a total tax rebate of approximately $2.2 million over the next five years. In return, the city of San Marcos, Hays County, and San Marcos CISD expect to collect an estimated $5.5 million in sales and property taxes generated by the business. Mayor Jane Hughson said the incentive program remains open to other developers.

Traffic impact analysis for the area suggests that increased vehicle volume may lead to longer travel times. The analysis proposes mitigation measures, including new turn lanes and re-striped roads at the intersection. A Home Depot is slated to open in 2027, and Rooms To Go is projected to open in late 2027, adding to the commercial activity in the vicinity.

During the ribbon-cutting ceremony on October 6, H-E-B donated $10,000 each to the San Marcos Education Foundation, Hays County Food Bank, and the Meadows Center for Water and the Environment at Texas State University. The company also allocated $20,000 to plant native trees at San Marcos High School as part of its Trees for Texans initiative, with planting scheduled for spring 2027.