BREAKING: Austin’s beloved Tex-Mex restaurant, El Mercado, will serve its final dinner on December 17. The restaurant, a local fixture for over 40 years, announced its closure via social media, marking an end of an era for the community.
This decision comes as the Villegas family, longtime owners, retire and transfer ownership to Stephen Shallcross of 2 Dine 4 Hospitality Group. The family expressed heartfelt gratitude to their loyal customers, stating, “Thank you to all for being customers but also for being my friends. I will miss you all so much!”
El Mercado, located at 302 South 1st Street, is renowned for its vibrant atmosphere and authentic Tex-Mex fare, including hot fajitas and cheese enchiladas. The restaurant will close its doors to undergo significant renovations, promising to retain its neighborhood charm. Shallcross plans to rebrand the venue as De Nada Taco, with a reopening anticipated in mid-January.
In a Facebook post, the team shared, “El Mercado will close its doors for much-needed TLC and deferred maintenance.” The renovations will include aesthetic upgrades, from new tables and chairs to a plethora of plants and traditional Mexican decor. COO Eric de Valpine assured the community, “De Nada Taco will reopen with its beloved salsa and staff.”
While El Mercado South will be temporarily closed, the north location at 7414 Burnet Road will remain operational under the ownership of Gerald Stone. The Villegas family emphasized the importance of preserving the memories associated with the restaurant, stating, “Selling the property to De Nada Taco will allow us to preserve some of our cherished memories.”
As the community prepares for this transition, the emotional impact is palpable. El Mercado has been more than just a restaurant; it has been a gathering place for friends and families. The team expressed their deep appreciation for the support they received over the decades.
WHAT’S NEXT: The transition is set to unfold over the coming weeks, with renovations aiming for a mid-January reopening of the new establishment. For now, customers are encouraged to visit the north location and enjoy the familiar vibes and flavors they have come to love.
Stay tuned for more updates on this developing story as the Austin community bids farewell to a cherished culinary landmark.


































