A beloved Texas-born restaurant chain that helped popularize Southwestern Tex-Mex cuisine has shut its doors after an impressive 36-year run. Z’Tejas, the Austin-based eatery known for its sizzling fajitas and scratch-made recipes, closed its final location on June 30, marking the end of an era for diners across Texas and Arizona.
The abrupt closure of this iconic chain, once a staple of Sixth Street in Austin, has left longtime fans stunned and wondering how a local culinary institution could vanish virtually overnight.
Why the Chain Closed
The company cites a perfect storm of challenges as the reason for its demise. “With our lease coming to an end and the challenges of today’s market, we’ve made the very difficult decision to close [Z’Tejas]—our last remaining outpost,” a note on the restaurant’s website announced. In recent years, Z’Tejas struggled to stay profitable amid rising costs and fierce competition.
Owners even tried to sell the business earlier this year, but when no buyer emerged, they had little choice but to shutter all remaining locations. As Z’Tejas’ owner Randy Cohen admitted, “Restaurants are in a pickle right now,” facing a tough climate for survival.
Customers Mourn the Loss
Loyal customers are lamenting the news on social media and beyond. Many say the closure marks “the end of an era” for the local Tex-Mex scene. “So sad,” one longtime patron wrote on Reddit, noting that their family “loved the restaurant…always took family and friends there when they were visiting”.
For countless Austinites, Z’Tejas wasn’t just a place to eat – it was a tradition. Its demise has left a void in the community, with fans swapping memories of margaritas on the patio and fondly recalling favorite dishes now lost to history.
Austin’s Changing Dining Landscape
The fall of Z’Tejas highlights a rapidly changing landscape in Austin’s dining scene. The chain’s flagship location on West Sixth Street – a fixture for 33 years – was forced to close in 2023 when the property was slated for redevelopment.
That closure signaled how even famed local institutions can be pushed out by rising rents and new developments. Now, with Z’Tejas gone entirely, dozens of its employees across Texas and Arizona are out of work. The disappearance of this long-running eatery underscores the economic ripple of a restaurant closure: suppliers lose a client, workers lose jobs, and the city loses a bit of its character.
A Southwestern Culinary Legacy
For nearly four decades, Z’Tejas helped define and popularize Southwestern cuisine far beyond Austin. When it first opened in 1989, its founders – including renowned chef Jack Gilmore – served up bold new flavors like cast-iron skillet cornbread and street corn risotto at a time when Tex-Mex fusion was just starting to catch fire nationally.
The original Austin location became a hotspot in the 1990s, earning acclaim for its made-from-scratch dishes and lively Texas ambiance. Z’Tejas’ success blazed a trail for Southwestern-style menus across the country. Its closure now leaves food lovers reflecting on the culinary legacy it leaves behind.
From Boom to Bankruptcy
At its peak, Z’Tejas grew from a single café into a regional powerhouse with 14 locations across Texas, Arizona and even California. But rapid expansion eventually gave way to financial strain. By 2015, the chain was struggling amid heavy competition and changing dining trends, leading to a Chapter 11 bankruptcy filing.
A second bankruptcy hit in 2017, wiping out more stores and prompting yet another change in ownership. The once-thriving brand had retrenched to just a handful of outlets in recent years. Z’Tejas’ dramatic rise and fall serves as a cautionary tale of how quickly fortunes can change in the cutthroat casual dining industry.
Failed Revival Efforts
Despite its troubles, determined owners fought to revive Z’Tejas until the very end. Austin entrepreneur Randy Cohen acquired the chain in 2018 and invested $1 million in renovations, adding fresh murals, new decor and other upgrades to recapture the restaurant’s former spark. “We’ve got so much love and spirit at Z’Tejas, and I just want to see it bounce back to the magic it used to be,” Cohen said optimistically in 2023.
Co-owner Robby Nethercut insisted as recently as this spring that the remaining restaurants were performing “really well” and that a buyer could help the brand grow. But those hopes were dashed when no bidder came forward, forcing the bittersweet decision to finally pull the plug.
Part of a Bigger Shake-Up
The demise of Z’Tejas is part of a larger shake-up hitting chain restaurants nationwide. This year alone, several other once-popular eateries have met similar fates. Fellow Tex-Mex chain On The Border filed for bankruptcy in March and is closing 76 locations across 24 states.
In April, Florida-based EVOS Burgers shut down after 31 years, and New York’s Sticky’s Finger Joint announced it would close all stores following a bankruptcy filing. Even well-established brands like Bar Louie and Noodles & Company are shuttering underperforming units. The end of Z’Tejas underscores how inflation, labor shortages, and shifting consumer tastes are buffeting legacy restaurant chains everywhere.
Where Fans Can Get Their Tex-Mex Fix
For heartbroken fans craving the flavors of Z’Tejas, all is not lost. Diners can turn to other beloved Tex-Mex spots and up-and-coming eateries that carry on the same Southwestern spirit. In fact, many veterans of the Z’Tejas kitchen have gone on to launch new restaurants around Austin, ensuring the chain’s influence lives on.
Longtime customers might recognize touches of Z’Tejas’ magic – a familiar spice blend here, a famous cornbread recipe there – at these successor establishments. Foodies can also try recreating some of Z’Tejas’ classic dishes at home, keeping its memory alive one skillet at a time.
A Final Goodbye and What’s Next
What began as a single Austin café in 1989 grew into a dining dynasty, and its final chapter reflects an industry in flux. Z’Tejas’ closure after 36 years is a poignant reminder that even the most iconic restaurants must adapt or face closure in changing times.
Its absence will be felt by the communities it served, but the spirit of innovation it championed remains. As new restaurants emerge and tastes evolve, the legacy of Z’Tejas endures in the Tex-Mex flavors now beloved nationwide. In an ever-shifting culinary landscape, every end also sparks a new beginning for hungry diners and aspiring restaurateurs alike.