If you see Frisco mayor Jeff Cheney this week, check his socks. They might be emblazoned with the logo of H-E-B, the privately held, San Antonio–based grocery chain that sells foodstuffs, housewares, and sundries with a Texas bent. Cheney, a 47-year-old Houston native, counts himself as one of H-E-B’s many fans, but until this week, he had to travel south if he had a hankering for H-E-B’s Texas-shaped white-corn tortilla chips or its Texas Heritage brand of smoked sausage. Way south.
Although the grocery chain has more than 420 stores and is ubiquitous in South, Central, and West Texas, there have been no stores bearing the H-E-B name in the megalopolis that is Dallas, Fort Worth, and their many booming northern suburbs. That changed on the morning of Wednesday, September 21, when a 118,000-square-foot H-E-B slid open its doors at the corner of Legacy Drive and Main Street in Frisco. The store is the first of several planned to open in Dallas’s northern suburbs over the next year, and Cheney said it answers the pleas of many Frisconians who are his fellow H-E-B fans. “For the longest time,” Cheney told me, “the number one question I got from residents was ‘When is H-E-B going to finally come to town?’ ”
That question is now answered, but a new one may emerge for North Texans. With more than a million new residents added in the past decade alone, it’s reasonable to believe a lot of people north of Interstate 20 are about to get their first taste of H-E-B’s Texas Heat trail mix and Cowboy Cookie packs, and, especially as H-E-B opens planned stores in Plano, McKinney, and Allen, they may then begin to discover why the food site Eater once declared H-E-B to be “the cultiest cult grocer in America.” The question, then, for those of us who haven’t already been inducted into that cult is: what’s the big deal with H-E-B, anyway?
To try to figure that out, I headed 55 miles west of downtown Dallas to the small community of Hudson Oaks, outside Weatherford. The H-E-B store there, close to I-20, was the northernmost of all the company’s H-E-B stores in this region until the Frisco location opened this week. (Technically the H-E-B in Lubbock is farther north.) The Dallas area has several Central Market stores, a swanky H-E-B subsidiary chain where I’ve shopped, but, perhaps like many North Texans, I’d never been inside an H-E-B until arriving in Hudson Oaks. When I walked through the doors, the store struck me less as a traditional grocery store and more as a warehouse club. It had exposed ceilings that were maybe 25 feet high, with metal beams painted in gleaming white. Some aisles looked wide enough to park a small pickup truck. Placards proclaiming “Low Prices” were plastered above many shelves. The H-E-B brand was stamped on everything—cashews, doughnuts, mineral water, Texas toast, salsa, and even cleaning supplies, such as scouring pads and toilet brushes.
As I wandered the wide aisles, I noticed many signs roughly the size of the flag that flies over the Texas state capitol jutting out from the walls. Each paid homage to the store’s Texas connections. One read: “It’s a Local Thing! We have more Texas-grown produce than any other retailer.” Another sign trumpeted that “H-E-B Corn Chips are made in San Antonio from corn grown in Hondo, Texas.” Yet another, in the produce aisles, declared: “Fresh from Cora’s Farm to Your Table.” That sign featured a photo of one Cora Lamar, who supplies H-E-B with cauliflower, peas, spinach, and other vegetables from her farm in Poteet, which is about thirty miles south of San Antonio.
In Hudson Oaks I met Rachel McCamley, an Austin native who routinely drives fifteen miles from her home in Fort Worth to shop at H-E-B. She told me all that Texas branding helps lure her back to the store. I found much the same sentiment an hour southeast of Hudson Oaks in Waxahachie—some thirty miles south of Dallas—where Bevin Shaw shops at the town’s lone H-E-B . Shaw said that since 2005, she’s regularly made the twenty-minute drive to the Waxahachie store, passing other big grocery stores on the way from her home near Red Oak. “It is neat to go in and find more local brands,” Shaw said. “They do try to support small Texas businesses.” One of her favorite buys: beef patties partly made with brisket.
Those same kinds of offerings will be available at the new Frisco store, too. So will a drive-through pharmacy and an in-store eatery called True Texas BBQ. The Frisco store, with its 750 employees, will also be different from other H-E-B locations in more subtle ways. Mabrie Jackson, H-E-B’s senior director of public affairs, told me that every new H-E-B store will reflect the “demographics, culture, eating habits, and shopping patterns” of its customers. In a nod to Frisco’s large Asian Indian population, for example, the store there will sell South Asian yogurt as well as chapati and roti whole-wheat flatbread, Jackson said.
Tweaking stores to meet individual communities’ needs, as well as a commitment to low prices, has helped H-E-B grow from a single location in 1905 to more than 420 stores today—77 in Mexico and all the rest in Texas. In addition to its H-E-B outlets, the company operates several other formats in the Lone Star State, including ten upscale Central Market stores; nine locations of Joe V’s Smart Shop, a discount grocer; two grocery stores geared toward Latino shoppers called Mi Tienda; and eleven convenience stores as well as five specialty pharmacies.
That’s a far piece from the single store Florence T. Butt operated in 1905 in Kerrville, in the Texas Hill Country. Florence handed that store off to her son, Howard E. Butt Sr., who began the expansion that finally reached Frisco. Today H-E-B has 145,000 workers, making it the biggest private employer in Texas. H-E-B says its annual sales are $34 billion. That’s about one fourth of what Cincinnati-based, publicly traded Kroger pulls in annually, but it’s still enough to make H-E-B the nation’s fifth-largest private company, according to Forbes.
Branding experts say the company’s growth has been driven, in no small part, by H-E-B’s focus on its Texas heritage. While grocers based outside Texas—Publix in Florida, Wegmans in New York, and Harris Teeter in the Carolinas—have earned their own cult followings by offering regional products and produce and by appealing to local pride, Curt Munk, chief strategy officer at Irving-based Tracy-Locke, a global commerce marketing agency, told me that he believes H-E-B intertwines its region with its offerings more than any other grocer. Indeed, scanning the aisles in Hudson Oaks, I saw labels touting “Quest for Texas Best” and “To Texas, With Love,” as well as Whataburger ketchup and Whataburger pork sausage, wrapped in that Texas chain’s orange-and-white branding.
Munk said the biggest thing that sets H-E-B apart, though, is that its stores don’t just sell meat and produce, “they provide experiences.” That might mean roasting Hatch chile peppers on-site from August through September or passing out samples of new recipes by H-E-B chefs—grilled tuna–and–feta tacos, say—at the stores’ so-called Cooking Connection stations. Or even handing out free, freshly made tortillas from H-E-B’s in-store tortillerias. H-E-B has “an entire theater setup, really, for the performance of food,” Munk said.
That and all those Texas twists in the product offerings have helped H-E-B closely connect to customers. In January 2022, Chicago-based Dunnhumby, a customer data science firm, said H-E-B ranked second, behind Amazon, in an annual consumer-preference study of U.S. grocery companies. Then, in June 2022, another Dunnhumby survey of online grocery shoppers crowned H-E-B the country’s top e-commerce grocer.
H-E-B hopes it can parlay those kinds of rankings into a bigger presence in the booming Dallas–Fort Worth area. After buying properties and biding its time in the area for years, it is now poised for further expansion. H-E-B “owns at least thirty-five sites here,” said Herb Weitzman, whose eponymous, Dallas-based retail real estate–services company has helped H-E-B secure at least a dozen sites throughout the state. “And they’re continuing to buy sites.”
Still, H-E-B faces serious challenges as it expands in North Texas. The Dallas market is dominated by Kroger, Target, Tom Thumb, Sam’s Club, and Walmart, and those deep-pocketed competitors are ramping up to meet H-E-B’s arrival. Kroger recently opened a massive fulfillment center south of I-20 in Dallas that can reportedly process 18,000 orders a day, dropping food and other goods at curbside pickup spots or store sites. And Walmart is remodeling fifty of its stores in the Dallas–Fort Worth area this year.
Beyond that, H-E-B’s Texas twang may sound unfamiliar to the almost 100,000 people who just started calling the Dallas and Fort Worth areas home in the past year. Chris Smith, cofounder of the Dallas advertising and marketing agency Plot Twist Creativity, which works closely with H-E-B’s in-house marketing department, says the company is working on appealing to shoppers who didn’t grow up with the brand. But, one wonders, will Californians from Fresno who now live in Frisco choose the familiarity of Kroger over H-E-B? Or will they shop at H-E-B as a means of cementing their new Texanness?
David Coats, vice president of strategy at Slingshot, a Dallas-based marketing and advertising firm, took a guess at the answer. “Once the H-E-B brand hits North Texas,” Coats said, “I think you’re going to see a lot of people who are going to be very, very loyal to it as shoppers. Much more so than they would be to Kroger or Tom Thumb or places like that.”
What does H-E-B stands for? ›
The initials of Howard E. Butt became the name of the store. Charles, the younger son of Howard E. Butt, became president of H-E-B in 1971.Will H-E-B come to North Texas? ›
The chain's first Dallas-Fort Worth store opens Wednesday in Frisco.What is the big deal about H-E-B? ›
H-E-B sees $34 billion in annual sales and is the largest food retailer and private employer in Texas. The company also operates 10 Central Market gourmet grocery stores in each of the state's four largest metros, and two Mi Tienda Mexican grocery stores in Houston.Who owns H-E-B now? ›
Butt Grocery Company in 1928. In 2021, H-E-B has more 340 stores in Texas and Mexico and more than a 100,000 employees, according to the grocery chain. Charles Butt, who is the company CEO and the founder's grandson, owns a majority stake in the company. His two siblings and two nephews also own stakes.Why do the Texans love H-E-B? ›
It becomes known among its fans for its wildly dedicated employees (many have worked there for 30-plus years), top-notch customer service (only at H-E-B will someone hand you a freshly baked tortilla to snack on while you shop), and unique food products (hatch chile cookies!).Where is the largest H-E-B? ›
At a whopping 182,000 square feet, the new H-E-B Plus is more than twice the size of the adjacent H-E-B, which was scheduled to shut its doors for good Thursday night. The company will lease out the old store. The new store is in the San Antonio area's busiest market for new-home building.Where is H-E-B building new stores in Texas? ›
HEB Austin 33 Store.
|Grocery Opening Date:||Q2/2023|
H-E-B has made a bold move into North Texas. The San Antonio-based supermarket chain just picked up nearly 20 acres of property in Prosper, about 30 miles north of Dallas, the Star-Telegram reports. The lot, on the southeast corner of Dallas North Tollway and Frontier Parkway, is less than 2 miles from a Kroger.Is Dallas Getting an H-E-B? ›
H-E-B, already a powerhouse throughout Texas, will open its first supermarket in the Dallas-Fort Worth metroplex later this month. Sep. 6, 2022 Updated: Sep. 9, 2022 6:30 p.m.What is the number one grocery store in America? ›
The largest grocery store in the U.S. is Walmart, with a year-end sales of $573 billion and a market share of 26%. As of 2021, the U.S. grocery store industry has a market size of $811.5 billion.
What is the biggest grocery chain in Texas? ›
Family Dollar, Family Dollar and Dollar Tree are the largest grocery chains in Texas in 2022 based on the number of locations. Family Dollar has the most number of locations with 1,126 locations across 461 cities. Family Dollar has 1,126 and Dollar Tree has 663 locations in Texas.Are there H-E-B stores outside of Texas? ›
H-E-B is an international chain
While Texas is currently the only state in the U.S. where you can find an H-E-B store, there are locations in Mexico too. The first international location opened in Monterrey, Mexico in 1997.
|Residence:||San Antonio, Texas, USA|
|Private Jet:||Bombardier Challenger 300 (N797CB)|
All of this has turned four members of the Butt family into billionaires worth $14 billion combined. The extended Butt family owns approximately 90% of the San Antonio-based firm, which Forbes currently values H-E-B at just over $17 billion.Do you tip H-E-B baggers? ›
By company policy, employees are not allowed to accept tips.What is the most expensive grocery store in the US? ›
According to a survey conducted by Business Insider, Whole Foods is 15% more expensive than general grocery stores such as Walmart and Kroger.What cities in Texas is H-E-B in? ›
- Austin Area. Austin Anderson Mill / 11521 North FM620, Building A, Austin, TX 78726. ...
- Border Area. Brownsville / 2155 Paredes Line Rd., Brownsville, TX 78521. ...
- Central Texas Area. Belton / 2509 N. ...
- Gulf Coast Area. ...
- Houston Area. ...
- San Antonio Area. ...
- Waco Area.
H-E-B is an international chain
While Texas is currently the only state in the U.S. where you can find an H-E-B store, there are locations in Mexico too.
abbreviation. Hebrew. Bible. Hebrews. Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc.
Who founded H-E-B? ›
The Butt family owns the Texas-based H.E.B. grocery store chain, which started in 1905 when Florence Butt opened a small grocery store with just $60. Her son Howard Butt took over in the 1920s and expanded it across Texas, renaming it the H.E. Butt Grocery Company in 1928.Where is H-E-B headquarters? ›