That giant grocery chain?: It was founded by a woman in 1905

H-E-B. An amazing Texas story when one considers that the grocery business was originally started in 1905 by a woman, Florence Butt, who opened her first store in Kerrville with a stake of only $60.

Her husband was too ill to work, and the couple had three children to feed, ages 10, 12, and 14.

Down, but not yet defeated, Florence Butt knew that if the store didn’t make it, there was little to no economic government safety net 120 years ago in 1905.

Make it or break it. In a story that Florence Butt penned in 1936, published in the Kerrville Times, she wrote: “The first month we sold $56 worth. One day, not a penny’s worth was sold. Several days, only 5 and 10 cents worth of merchandise was sold. But the responsibility was there, and it had to make good.” In 1936, Florence Butt and one of her sons, Howard E. Butt, the son credited with growing the store like few others, were set to open a new store in Central Texas when she wrote her story for the Kerrville Times.

At that time, the company already had a chain of 36 stores, but she could still recall those days from 1905 with what reads like a good dose of fondness: “Our first delivery was a baby buggy with top taken off, and a box placed on the wheels. Then it was run over by a wagon, and we had to get a child’s play wagon, costing $3.00, which was much for our limited capital. Then the rains came in the winter, the little wagon wheels would fill with mud and it could not be pulled any longer. So we bought a horse that cost $20, a wagon costing $5, a harness $2.50 — $27.50 total cost for the first delivery wagon.”

So hard to believe when one walks into an HEB store today.

What one woman could accomplish initially with enough drive, determination, and faith.

Interesting side note: For years, as staunch Baptists, HEB wouldn’t sell beer or wine, and they closed for Sundays.

That changed when the company’s current chairman, Charles E. Butt, took over store operations as company CEO in 1971.

With annual revenues last year of approximately $47 billion last year, the Butt family still owns 90 percent of the business, while the employees own 10 percent. (Source: Forbes.)

H-E-B Announcement
The company announced its new president, Roxanne Orsak, last Tuesday.

From HEB’s press release:

“Orsak graduated with honors from Texas A&M in agricultural economics and attended Harvard Business School’s Advanced Management Program and the University of Southern California’s Food Industry Management Program. She is deeply involved in supporting rural schools and communities with a focus on education, youth development, and small business growth. Orsak and her husband support the South Texas Multiple Sclerosis Society which is dedicated to helping individuals impacted by the disease and funding research to find a cure.”

She began her career with the food giant as a trainee. Again, from the company’s press release: “Orsak began her career at the company in 1988 as a store management trainee and rose through the ranks of store operations, merchandising, procurement, format design, and more. She has held leadership positions in almost every area of H-E-B’s business before being named Chief Operating Officer in 2022. She will be the first woman to serve as President of H-E-B, an especially meaningful milestone for the company, which was founded 120 years ago in 1905 by Florence Butt, a pioneering female entrepreneur.”

Best of luck.