H-E-B is weighing a major expansion at its Foster Road property on the East Side of San Antonio, near Loop 410 and Rigsby Avenue, that could reshape local manufacturing and distribution. The company has floated a roughly $700 million plan that could start construction later this year and bring new facilities online as soon as 2028, with leadership and local officials watching closely.
The site, more than 870 acres east of Loop 410 and north of Rigsby Avenue, was purchased by H-E-B in 2018 and already hosts a sizable warehouse and manufacturing footprint. Company records show prior investments topping $445 million, and the proposed project would build on that existing presence rather than start from scratch. That deep-pocketed commitment is part of why the plan has drawn attention from business and city leaders alike.
Early outlines for the expansion point to a mix of manufacturing and logistics assets, including a modern bakery, a refrigerated storage facility, a new transportation building, and an enlargement of the current plant. Those elements are designed to boost H-E-B’s capacity for temperature-controlled items and tighten the flow from production to store shelves. Faster, closer distribution is the point: cutting transit time for perishable goods matters in grocery operations.
The financial and job numbers being discussed are significant. H-E-B has signaled the potential for about 720 jobs by 2028 and more than 1,200 full-time positions across the next decade if the full scope moves forward, a scale-up that would affect hiring, training and local payroll tax revenues. Construction would also create a wave of temporary jobs during the build phase, while long-term roles would land in baking, refrigeration ops, transportation logistics and plant management.
H-E-B called the possible work “The project will be the company’s largest investment in its manufacturing and supply-chain division and, if the retailer moves forward with developing its plans at the Foster Road location, it will be among the largest industrial investments in the San Antonio area.” That phrasing underscores how the company views the Foster Road site as more than just another facility; it’s a strategic anchor for its Texas operations.
Leadership framed the effort as both economic and customer-focused. “While we are still developing our plans, this will be a major investment for H-E-B that will create jobs and better position us to serve even more Texans,” H-E-B Chief Supply Chain Officer Carson Landsgard said in a news release, signaling that the project aims to tighten the retailer’s regional supply chain while supporting growth across its store network. The company also emphasized the site’s room for a phased buildout rather than cramming into a smaller urban parcel.
Local planners and employers are likely to monitor permitting and timelines closely because of the potential tax base and steady payroll the complex could bring. The existing footprint at Foster Road already includes a warehouse and a manufacturing plant that together exceed two million square feet, so the new project would be an expansion of a major industrial campus rather than an isolated new build. That scale makes coordination with city infrastructure, roads and utility planning part of the calculus.
H-E-B stressed that decisions on exact facilities, phasing and final design remain unsettled, describing the Foster Road location as a potential site rather than a finished commitment. If the retailer advances the plan, phased openings beginning in 2028 could change how some products are produced and distributed around San Antonio and beyond, bringing more control over production and faster distribution closer to customers.
