Story by Sam Judy
Contributing writer Marlissa Collier
South Dallas’ food insecurity issue is about to get a lot worse.
In a press release last Monday, Urban Harvest Food Co. and Shekinah Legacy Holdings announced that Moran Foods LLC. has ended talks of a partnership and has decided to close the MLK Save-A-Lot store on Feb. 16. The store has been a community staple for affordable groceries for over two decades, but its operation has been rendered unstable since 2020 when Moran made the decision to transition to a wholesale business model. Employees were reportedly told by Moran Foods that the “landlord wanted them out” despite the business voluntarily leaving the lot.
“The store has never been doing ‘that great,’ but it was an option,” Nicki, a resident of South Dallas said of the closure. “Now you go up the street, things are double, triple the price at Fiesta. Where am I supposed to get food? Closest other stores are in Pleasant Grove.”
Scottie Smith of Shekinah Legacy Holdings was quick to voice his disapproval, stating that previous dealings with Moran Foods suggested there was more time to prove the viability of the store.
“The abrupt announcement of the closure by Moran Foods is a blow to South Dallas. For half a year, we were in active negotiations to take over the store’s operations, intending to ensure the area’s sustained access to essential food supplies[…] Their sudden decision to shut down, bypassing a community-inclusive solution, demonstrates a blatant disregard for the wellbeing of South Dallas residents.”
Scottie Smith, founder of Shekinah Holdings
Prior to talks with Smith, Moran Foods had established its standard contract agreement with independent owner, Yellow Banana LLC., a DC-based company focusing on making low-cost groceries accessible in food deserts across the country. As Yellow Banana reportedly did not meet contractual obligations in operating the store, with residents and employees citing extremely low stock of products, Moran Foods terminated the partnership.
Now, despite previous promises of a gradual closure, Moran Foods is shutting down grocery operations at the building on Martin Luther King Jr. Blvd. on Feb. 16.
“I mean, [if the economy] keeps getting worse, then the city is going to have to do something right?” South Dallas local Darrien says. “People can’t live without food, and one grocery store for this neighborhood isn’t gonna cut it.”
While Yellow Banana’s handling of the MLK Save-A-Lot was just another flop on the LLC’s already lackluster record of providing viable options to inner-city residents, the company’s poor management contributed to the location’s mounting economic failures. Now, as the company prepares to close its doors permanently, residents of the neighborhood are now forced to rely on the Fiesta Food Mart of Fair Park as the sole low-cost grocer in the area.
Residents have called for the city to provide greater food options to the area. But as the office of District 7 Councilmember Adam Bazaldua has previously stated, the commission of additional grocers “would be based on the income levels of an area and the viability of the stores.”
Food pantries have similarly become less common in South Dallas, with operations steadily decreasing since 2020.
Like all lower-income Texans, poorer residents living in areas like South Dallas pay a higher percentage of taxes than higher-income Texans. As sales tax has been found as the most regressive tax policy, taking higher percentages of smaller incomes, residents of South Dallas pay proportionally more while having less access to adequate resources.
Food insecurity has been rampant in South Dallas for years, however, the city has not been successful in implementing a significant improvement regarding grocery options in the area. As we interviewed the City of Dallas last year in covering this issue previously, the city does not consider an area for the commission of grocers if the investment can not be proven to be economically viable. However, efforts have been taken on to make grocery items more accessible further south, closer to Red Bird and Cedar Crest.
South Dallas/Fair Park’s employed population accounts for over 22,000 workers in Dallas. Likewise, 35% of the labor force of Southern Dallas County are in the blue collar sector and a separate 28.7% work in an industry working with the public, such as education, health, and social sectors.
Additionally, South Dallas/Fair Park holds a child population of around 8,000, raising concerns of poor diets for students in the area. Adults are also worried about the disillusionment youth of the neighborhood feel about their living standards.
“We have high school students across the street come and ask me for a job… As someone in this community, a manager of a business in South Dallas, I try to play a positive role. Now this business is shutting down and it doesn’t do a lot for these kids.”
Eric Patt, Manager of Save-A-Lot on MLK
While the loss of local Save-A-Lot stores deals a blow to the community, the MLK store’s poor performance over the last year has already offered the first bitter taste of its absence. South Dallas’ increasingly rampant food insecurity has a direct correlation with various other statistics, such as poor educational performance and poor health.
As South Dallas residents have among the lowest median income in the city, food and housing infrastructure will continue to crumble until the city provides greater support.