From Sixth Street fame to a quiet final service, the Southwestern favorite closes every door across Texas and Arizona.
Z’Tejas, once a go‑to for cast‑iron cornbread and chile‑rubbed meats, served its last plate in Kyle on June 30, bringing a 36‑year story of Southwestern cooking to an abrupt close.
First launched on Austin’s Sixth Street in 1989, the chain rode a wave of national curiosity for Tex‑Mex and Southwestern flavors. Diners loved the bold spices, and by the late 1990s the brand had spread to 14 restaurants in three states. So why did a regional darling fade out?
How a beloved Austin original grew into a regional force before stumbling hard
Paul Fleming teamed with local restaurateurs Guy Villavaso and Larry Foles to open the inaugural location, spotlighting chef Jack Gilmore’s smoky, pepper‑driven menu. Accolades rolled in, expansion followed, and in 2007 new investors hoped to turn Z’Tejas into a national name.
Nevertheless, the late‑2000s recession pinched margins, and the mid‑2010s brought bankruptcies that trimmed stores and strained cash. Cornbread Ventures, an Austin investment group, bought the brand in 2017 aiming for a reboot. Timeline of a rise and retreat:
| Year | Milestone |
|---|---|
| 1989 | First restaurant opens on Sixth Street, Austin |
| Late 1990s | Peak growth: 14 units across TX, AZ, CA |
| 2007 | Fleming and partners sell to new investor group |
| 2014‑2016 | Multiple bankruptcy filings weaken expansion plans |
| 2017 | Cornbread Ventures acquires the chain |
| 2023 | Original Sixth Street flagship shutters; Kyle unit debuts |
| Jan 2025 | Entire portfolio quietly listed for sale |
| Jun 30 2025 | Kyle closes, ending all operations |
Multiple ownership changes and rising costs finally sealed the chain’s fate
Rent hikes on prime urban sites, escalating food costs, and pandemic‑era staffing battles gnawed at profits. “You’re spending all your time putting Band‑Aids on something when I don’t own the property,” owner Randy Cohen lamented during the final months. So, what tipped the balance? Operators cite three decisive pressures:
- Soaring real‑estate costs in booming Texas metros
- Inconsistent execution after frequent leadership turnovers
- Tight venture capital for mid‑scale casual chains in a crowded market
Remember the sizzling skillets carried past your table? Even loyal patrons noticed smaller crowds in the last year.
What happens to the brand now?
No buyer surfaced during the six‑month sales window, and trademarks remain with Cornbread Ventures. While a ghost‑kitchen revival is possible, insiders say the recipes are “on the shelf” for the foreseeable future.
A trailblazing concept that introduced many Texans to Southwestern fare couldn’t outrun high costs and ownership churn. If you’re craving those diablo shrimp, you’ll have to fire up the grill at home—for now, at least.