This is the food situation facing East Austin families. And though food insecurity appears as simply another symptom of poverty, increasing food access depends in large part on addressing the gaps in the food retailing industry as well as on increasing family income. By understanding the precise reasons why large and small stores have trouble doing business in low-income neighborhoods, it is possible to form workable solutions that will improve the food distribution network, end families' dependence on emergency food assistance and make each family food secure. There are reasons for the gaps in service Eastside residents experience when they go to supermarkets and convenience stores in their neighborhood. Both supermarket corporations and convenience store owners face real economic constraints doing business on the Eastside.
Supermarkets represent a major investment in land, buildings, equipment and inventory.
Further more, although a lot of money can be made in supermarkets, the industry is competitive. Even the largest stores operate on just a one or two percent profit margin.49 Supermarket owners think carefully before opening new stores. According to representatives from two regional Texas supermarket companies, there is a standard set of criteria for expanding into a new neighborhood. These basic criteria have a fundamental importance for medium size, low-density neighborhoods like East Austin. Unlike the dense inner-city neighborhoods of Chicago, Detroit or New York, East Austin' s 24,000 residents live spread out over six square miles.