El Mercado, a longtime Tex-Mex staple, will serve its final dinner on December 17. The owner of the restaurant shared the news of closure and retirement on social media. Ownership has transferred to Stephen Shallcross, who plans to renovate the restaurant and reopen it in mid-January.
El Mercado South to Temporarily Close Following Sale
El Mercado South has been a fixture at 302 South 1st Street for more than 40 years. The eatery is a local favorite and is known for its authentic Tex-Mex bold flavors and vibrant atmosphere. The restaurant serves hot fajitas, Cheese Enchiladas, Beef Enchiladas, and Tex-Mex smoked brisket tacos. After decades in business, the Villegas family has decided to retire and has sold the restaurant to Stephen Shallcross of 2 Dine 4 Hospitality Group.
Through a Facebook post, the restaurant shared, “El Mercado Restaurant & Cantina South will close its doors on December 17th, during the holidays, to undergo much-needed TLC and deferred maintenance.”
The team behind the restaurant said the place will retain its neighborhood character. “2 Dine 4 is also investing in aesthetic upgrades, including new tables and chairs, a De Nada-sized number of plants, and Mexican decor to complement the historic property and existing trees,” added the team.
El Mercado’s second location in North, 7414 Burnet Road, will remain operational under the ownership of Gerald Stone. The restaurant team extended a warm appreciation to the community and shared, “Once again, thank you to all, not only for being customers but also for being my friends. I will miss you all so much!”
Space To Reopen As De Nada Taco
The Villegas family, longtime owners and operators of El Mercado South, sold the restaurant to Stephen Shallcross, who plans to rebrand and renovate the property. Under new ownership, the restaurant will undergo renovations while preserving the spirit of the original space.
“Selling the property to De Nada Taco will allow us to preserve some of our cherished memories within the building. It will also give my neighbors a place to call home, rather than see high-priced condos or apartments built on the property,” the team stated.
“COO Eric de Valpine assured our customers that De Nada Taco will reopen with its beloved salsa and staff in mid-January, as soon as they can obtain enough new pink cups to serve the South Side of Austin,” they added.
“The buyer assured me that they will retain the employees, some of whom have been with me for 20 to 30 years, which is a blessing,” The restaurant owner said.
As El Mercado South’s final chapter comes to a close, the team expressed gratitude for 40 years of community support. Customers can still enjoy El Mercado’s vibe and food at its second location in North Austin.
