Scanning aerials on East Main Street in Alhambra, there are several possible candidates for this building, but they all have a different look on the front so there's no telling if any of them is the one from the old photo.
EDIT: I located another mention of McDaniel's Midnight Market from a 1931 newspaper ad, which places it at 110 East Main Street. Now the site of a shopping center with clearly much newer buildings.
