H-E-B's largest San Marcos location brings 400 jobs and a new BBQ option

San Marcos city officials and H-E-B executives face a growing demand for grocery access in a rapidly expanding part of the city. To meet this need, the retailer opened its third local store on Oct. 7 at 1074 E. McCarty Lane. The new facility serves residents on the east side of Interstate 35 and the city’s south side, areas where access to affordable food has been a persistent concern for local leaders.

The 114,000-square-foot building represents an estimated $53 million capital investment in the city. The construction process began with a groundbreaking ceremony on Nov. 4, 2025. The new location created more than 400 jobs, with approximately 212 full-time positions and 238 part-time roles filled for the store’s opening.

Jeff Martinez, the general manager of the new location, stated that the store is designed to reflect the community it serves. He said the company brought together fresh food, quality products, and convenient services for the residents. The store is the largest H-E-B in San Marcos and features the city’s first True Texas BBQ restaurant. This dining option offers all-natural meats smoked in-house over Texas oak wood, along with sides such as brisket beans and creamed corn.

Kathy Ham, a senior vice president for H-E-B’s Central Texas region, described the new store as a thank you to customers for their loyalty over the company’s 71 years of operation. She noted that the store helps deepen the company’s roots in San Marcos. H-E-B plans to open a Fresh Bites convenience store at this location in spring 2027. That addition will include a fuel station and a car wash.

City Council members have advocated for more grocery options for several years. On May 7, 2024, the council adopted a resolution to support tax incentives for grocery store development. According to the Central Texas Food Bank, 20.3% of children in Hays County were identified as food insecure, while 17.8% of the overall population faced the same issue. Residents living more than a mile from a SNAP-authorized retailer often experience larger barriers to accessing affordable food.

H-E-B applied to the city’s incentive program before developing the McCarty Lane site. The city will provide the company 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 are expected to collect an estimated $5.5 million in sales and property taxes generated by the business.

Mayor Jane Hughson said the city could use several more grocery stores and that the incentive offer remains open. She emphasized that the store is located in a growing area where grocery services are needed. A traffic impact analysis for the area proposes mitigation measures, including new turn lanes and re-striped roads at the intersection to handle increased traffic from new developments.

Other major retail openings are planned for the vicinity. A Home Depot is slated to open in 2027, and Rooms To Go is projected to open in late 2027. During the ribbon-cutting ceremony on Oct. 6, H-E-B made $10,000 donations 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.