Foodarama, previously known as Cox's Foodarama, is a supermarket chain in Texas, with its headquarters in Foodarama Store #1 in Brays Oaks, Houston. In Greater Houston, as of 2004 Foodarama operates nine stores.[1] For a period, Carrol Cox was the owner of Foodarama.[2] As of 2011, 1,000 people work for Foodarama.[3]
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The first Foodarama location opened in 1973.[4]
In 1993, after AppleTree Markets put many of its stores up for sale, Cox's Foodarama acquired one.[5] Foodarama acquired the 1805 Ella Appletree,[6] currently Foodarama #4.[7] On February 28, 1999, Cox's Foodarama had seven locations. It had $74.4 million in annual sales and 1.4% of the grocery market. It also had 814 Houston-area employees. In the period starting a year from February 28, 1999, Foodarama opened two locations and remodeled two locations.[2] In 1999 Cox's Foodarama had 1.5% of the Houston grocery market.[8] Foodarama occupied a Randall's location that was closed in 2006.[9]
In Greater San Antonio it operates the La Fiesta chain, a subsidiary.[1] La Fiesta is headquartered in La Fiesta Supermarket #10 in San Antonio.[10][11]
In 2002 80% of the customer base was Hispanic. To cater to Hispanics, the chain devoted large portions of their stores to meat and fresh produce. Ronnie Catlett, the vice president of Foodarama and general manager of the San Antonio division, said that the stores were intended to cater to groceries.[12] Elizabeth Allen of the San Antonio Express-News said that the company's niche was "modest but profitable".[12]
In order to cope with small profit margins, La Fiesta tries to reduce its overhead as much as possible.[12] To reduce its overhead, La Fiesta uses bulk buying, requires store managers to work on the shop floor instead of in offices, and, as of 2004, has low labor costs. As of 2004 most of its locations are in western San Antonio, serving Hispanic populations there.[1] La Fiesta's designated wholesaler, Grocers Supply, has a buying coalition which allows its customers to get goods at lower prices. Individual locations are permitted to make pricing and scheduling decisions.[12]
Prior to 1998 La Fiesta operated a 16,000-square-foot (1,500 m2) location in Eagle Pass, Texas, a community along the Mexico-United States border. It was across the street from an H-E-B location that was, as of 1998, being remodeled. In addition the future of the Mexican peso as a currency as uncertain. Also the Government of Mexico enforced a $50 import limit among Mexicans returning into Mexico, affecting La Fiesta's business among Mexican national shoppers. Because of the issues involving Mexico and competition from H-E-B, the Eagle Pass La Fiesta closed.[12] As of 2004 it was the only location ever closed in the history of La Fiesta.[1]
The chain's first store opened in 1981.[10] In 2002 the chain had six locations.[12] As of 2004 it was planning to open two additional locations. As of the same year the largest location is a 43,000-square-foot (4,000 m2) former Handy Andy at Callaghan and Ingram, which includes a bakery and restaurant.[1] The store had replaced a smaller location that was across the street.[13]
After a La Fiesta fired a pregnant employee, the United States Equal Employment Opportunity Commission filed a lawsuit against Foodarama, saying that the termination was wrongful because the store did not accept a full medical release from a doctor that was intended to allow her to work without restrictions. Foodarama settled witht he EEOC; it gave the employee $10,000 and posted notices saying that it is making a discrimination-free workplace.[14]
Foodarama's headquarters are in Foodarama Store #1 in Brays Oaks, Houston.[4][15][16] In February 1989, Carrol Cox, the owner of that Foodarama location, opposed the plan of a Metropolitan Transit Authority of Harris County (METRO)-implemented grade separation at Willowbend and South Post Oak since he believed it would reduce the number of parking spaces at the store.[17] On September 10, 1989, a woman was murdered in a robbery in the store parking lot.[18]
