The third San Marcos H-E-B location opened its doors on Oct. 7, expanding food access for residents on the east side of I-35 and the city’s south side.
The 114,000-square-foot full-service grocery store broke ground on Nov. 4, 2025. The H-E-B represents an estimated $53 million capital investment in the city and created over 400 jobs: approximately 212 full-time and 238 part-time.
“H-E-B is built to reflect the community it serves, and this store is no exception,” said Jeff Martinez, general manager of the new H-E-B location. “We've gone all out for you, bringing together fresh food, quality products and convenient services you know and love from H-E-B.”
The overview
The new San Marcos H-E-B grocery store, located at 1074 E. McCarty Lane, provides customers with a selection of services, including:
In addition to being San Marcos’s largest H-E-B, the new location features the city’s first True Texas BBQ restaurant.
True Texas BBQ offers customers all-natural meats, smoked in-house over Texas oak wood, and a variety of classic sides, such as brisket beans, creamed corn, homestyle potato salad and more, according to the release.
“This new store represents our way of saying thank you for your years of trust, your years of loyalty and the great support that you have shown H-E-B for 71 years,” said Kathy Ham, H-E-B senior vice president for the Central Texas region. “We have been proud to serve the city of San Marcos, and this store is another way for us to deepen the roots and continue being a part of the city that we feel privileged to call home.”
Additionally, H-E-B will open a Fresh Bites convenience store at the McCarty Lane location in spring 2027, adding a fuel station and car wash.
“While this beautiful building is what everyone sees, what truly makes the store special are all the people that brought it to life, and those that will continue to do so, our amazing partners,” Martinez said.
The impact
San Marcos City Council members have expressed the need for more grocery options in the city for several years. On May 7, 2024, council adopted a resolution to support tax incentives for grocery store development in the city.
Low-income residents living more than a mile from a SNAP-authorized retailer experience larger barriers to accessing affordable food.
In Hays County, 20.3% of children were identified as food insecure and 17.8% of the overall population was identified as food insecure, according to the Central Texas Food Bank.
The new H-E-B helps alleviate the access struggles community members on the east side of I-35 in San Marcos face.
Looking forward
H-E-B applied for the city’s incentive program before developing the newest store location.
Over the next five years, the city will provide H-E-B with a total tax rebate of approximately $2.2 million. The city of San Marcos, Hays County and San Marcos CISD will collect an estimated $5.5 million in sales and property taxes generated by the business.
“We could use several more grocery stores across our city. The incentive offer is still open,” said San Marcos Mayor Jane Hughson.
Diving in deeper
The new H-E-B is located in a rapidly growing area of San Marcos, with several new developments already underway. The Home Depot is slated to open in 2027, according to a company spokesperson. Rooms To Go is projected to open in late 2027, said Vice President Peter Weitzner.
“This new store is located in a growing area of town, and grocery services are very much needed there,” Hughson said.
Residents may face increased traffic and longer travel times as more drivers use the area, according to a traffic impact analysis. The analysis proposes traffic mitigation measures, including new turn lanes and re-striped roads at the intersection.
Also of note
H-E-B made donations to three local organizations during the new store’s ribbon-cutting on Oct. 6, including the San Marcos Education Foundation, Hays County Food Bank and the Meadows Center for Water and the Environment at Texas State University. Each organization received $10,000.
“H-E-B is a strong Texas company with community values,” Hughson said. “They are here with what we need, when we need it, to support a community event or to help us deal with a natural disaster.”
Additionally, the company allocated $20,000 in funding toward planting native trees that provide shade, enhance outdoor learning and benefit students, families and wildlife at San Marcos High School. The planting was part of H-E-B’s Trees for Texans initiative. The trees are scheduled to be planted in spring 2027.
