Davis Food City

Davis Food City was an independent grocery chain that helped form much of our current independent grocery scene. The tale of A. L. Davis began in 1918, when Albert Leo Davis was born in South Carolina. Davis, who would join the Army Air Force during World War II, met and married a native of Fort Worth, where he would reside after the war. Davis would establish his first store in 1947, near the “temporary community” of Liberator Village, which had been built to support the nearby Air Force Manufacturing Plant. Davis’s prominence in the military community and his push towards hometown service helped him grow the chain quickly. By 1953, there were already six A. L. Davis Food Stores operated throughout the Fort Worth area, and by 1962, there were 50. The chain’s rapid expansion was primarily driven by the acquisition of leases at locations vacated by other chains. However, Davis also developed a small-format neighborhood store, Handymarkets, to expand into smaller communities. In all this expansion, the chain had grown far outside the confines of Fort Worth. Going far West to Odessa, North to Amarillo, and East to Mesquite. This growth had made Davis Food Stores one of the largest independent operators in Texas at the time. However, the expansion was financed by debt, and the company ended up owing more than $2 million in excess of its value. In a moment of desperation, Davis’ wife, Neva, sold her stock in the publicly traded company and gave the resulting $138,000 to her husband, who took it to Vegas and lost it all. Davis would have to acknowledge this fact before his creditors, the largest of whom was Kimbell Grocery Co. In late 1963, A. L. Davis stores would file for bankruptcy. Despite Davis undertaking equipment liquidations and months of reorganization, he ultimately sold his chain to Kimbell Grocery Co. in early 1964. Kay Kimbell, the company’s owner, would pass away only weeks after the sale. By 1965, the Davis Food Store brand had been retired in favor of Buddie’s, a company Kimbell had acquired several years earlier.

In 1965, the Davis family relocated to Houston, and, using some of his savings, Albert purchased the lease on a Minimax in the enclave of South Houston. His selection was impeccable, as the store was, and remains, the area’s primary grocery store as of 2023. The following location would not open until 1966, in South Park. It was a former Super Valu, which had merged with Minimax at this point. While Davis’ relationship with his supplier had soured in DFW, Fleming appeared to favor Food City. The stores that Davis was taking over had been franchised but were returned to the supplier when their operators failed. The third he received was in Brenham, Texas, where thousands of dollars were spent on renovations, which easily competed with the new HEB. By 1970, Food City was up to five locations in Houston and six overall. All of these locations had been acquired through Minimax, and, while profitable, were, on average, smaller and older than competitors’. In the 1970s, Food City began building new stores. They would also purchase a former Henke-Kroger to expand to nine locations by 1977. In 1978, Davis infamously won a court case against the IRS. The agency had sued Albert for writing off losses that he had incurred before his bankruptcy; however, the courts ruled in his favor. In 1981, Davis reached a high of 8 locations after purchasing a former Gerland’s in West U. The store, which was technically the 10th (counting Brenham), would actually be numbered #20, as if to set a goal. The reality, however, is that at this point, growth would slow dramatically for Food City. As mentioned many times before, the early 80s were uncertain times in Texas. Davis had weathered the ’70s oil crisis, but by this point he was either unable or unwilling to address deteriorating economic conditions.

During this time, the existing Food City stores began to show their age. As previously noted, many were older and smaller than most competitors, and during his ownership, Davis’s maintenance approach was lax in favor of lower prices. While stores weren’t left untouched, they weren’t particularly pretty. Food City developed an austere reputation. They were known for having hand-written advertisements, painted windows, and low prices. After closing a few underperforming locations, Food City opened two new stores in 1988. However, this would be their only movement for years. In the 90s, the chain would pivot to become a bit more Hispanic-focused. While not a traditional Hispanic grocery by any means, Food City’s selection was tailored to appeal to as many Houstonians as possible, which involved adding more international products. In 1998, Food City opened two new stores and relocated one, marking its final moves. By this point, Davis was in his 80s, and while other family members were helping, his expertise was needed. Albert died in 2003, and the breakup of Food City began. By that point, there were eight locations; two were sold to the upstart Hispanic grocer Mi Rancho that year. Other stores started closing in 2005 and 2006, seeking alternative tenants. In 2006, Rafael Ortega, owner of La Michoacana and El Ahorro, submitted a bid for the remainder of Davis Food City. While most locations were converted to El Ahorro or La Michoacana, the Aldine Mail Route store was converted to the updated “Food City” banner. This banner has been tested on two new stores, both of which have since closed.

Location List