A beloved Austin Tex-Mex landmark is closing its doors, but a new chapter is about to begin. After 40 years of serving up South Austin favorites, El Mercado (1302 S. First St.) will close on December 18th, marking the end of an era for the Villegas family, who have owned and operated the restaurant since 1985. But fear not, food lovers! The space will be reborn as a second location of the popular De Nada Taco, thanks to Stephen Shallcross and his 2 Dine 4 Hospitality Group. And this is the part most people miss: the transition isn't just about a name change; it's about preserving a legacy while injecting new life into a cherished community hub.
Tony Villegas, whose family has owned the land since 1971, could have sold to developers eager to build condos. Instead, he chose to pass the torch to someone who shares his passion for community and quality. “I sold it because I wanted to, and I sold it to someone who gives a damn,” Villegas said, praising Shallcross's commitment to maintaining the spirit of El Mercado. Shallcross, a long-time patron of El Mercado, promises to honor its history while adding a touch of De Nada's signature charm. But here's where it gets controversial: will the new De Nada Taco truly capture the essence of El Mercado, or will it lose the soul that made the original so special? Only time will tell.
The new De Nada will retain much of El Mercado's menu, including fan-favorite dishes like enchiladas and nachos, as well as the iconic salsa. However, in a bold move, the restaurant will go entirely gluten-free, aligning with the original De Nada Cantina's philosophy. The space itself will undergo a transformation, blending El Mercado's funky 80s vibe with vintage design elements to create a unique, timeless atmosphere. “We’re going to sprinkle some De Nada on it and have it feel even older than its 40 years,” Shallcross explained.
And this is the part most people miss: El Mercado wasn't just a restaurant; it was a cultural cornerstone for South Austin's music scene. Since 2009, it has hosted live performances, including the beloved Mystery Monday series. Shallcross assures patrons that De Nada will continue this tradition, keeping the music alive. Villegas, though stepping back from an official role, plans to be a regular visitor, eager to see the new iteration thrive. “I’m really looking forward to seeing what they do with it,” he said with a laugh.
De Nada Taco is set to open for dinner in mid-January, with lunch, and possibly breakfast or weekend brunch, following in the months ahead. But here's the question we leave you with: Can a new establishment truly replace a beloved icon, or will it always be compared to the original? Share your thoughts in the comments below—we want to hear from you!
