News Summary

Z’Tejas has officially closed its last remaining location in Kyle, concluding a 36-year journey for the Tex-Mex chain that was beloved in Austin. The decision to close follows years of financial struggles, including bankruptcies and competitive challenges within the restaurant industry. Originally established in 1989, Z’Tejas witnessed significant expansion but faced difficulties that led to its decline. The closure is felt deeply within the community, underlining the evolving landscape of dining in Austin.

Austin

Z’Tejas has officially closed its last location, marking the end of a 36-year journey for the Southwestern-style Tex-Mex chain. The final dinner service at the Kyle restaurant, the last remaining Z’Tejas, took place on June 29, 2025.

Closure Highlights

The closure of Z’Tejas comes after a series of financial struggles that impacted the company significantly, including bankruptcies in 2015 and 2017 that led to the shutdown of several locations primarily in Arizona. As of early 2025, Z’Tejas operated four restaurants. However, shortly after, management made the decision not to renew their lease amid challenges in the current market, leading to the closure of all remaining locations.

Historical Significance

The chain first opened its doors in Austin in 1989 on West Sixth Street, establishing itself as a beloved Tex-Mex dining option for locals and tourists alike. Over the decades, Z’Tejas experienced considerable growth, expanding to numerous locations across Texas and Arizona. However, it faced difficulties maintaining its foothold in recent years, reflected in the closure of its original Sixth Street restaurant in 2023 due to a redevelopment initiative in the area.

Ownership Transition

In 2017, investor Randy Cohen became involved with the company and ultimately became the sole owner in 2020. He was aware of the redevelopment plans affecting the Sixth Street location prior to his full acquisition of the company. The recent closures represent more than just the end of a restaurant; they signify a broader shift within the dining landscape of downtown Austin, where many longstanding establishments have made way for newer developments.

Community Impact

Z’Tejas management expressed gratitude towards their loyal customers, neighbors, and friends for the support they received over the years. The closure resonates deeply within the community, reflecting changing consumer habits and increased competition in the restaurant industry. The end of Z’Tejas’ operations emphasizes the challenges many dining establishments face in enduring economic circumstances.

Future Considerations

The closing of Z’Tejas serves as a reminder of the evolving dynamics in the restaurant sector, especially in a vibrant market like Austin. As businesses adapt to new consumer demands and preferences, former giants in the industry are facing tough decisions that can lead to their closure. The legacy of Z’Tejas will remain a part of Austin’s culinary history as the area continues to transform.

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Additional Resources

• Austin American-Statesman
• Wikipedia: Z’Tejas
• KXAN News
• Google Search: Z’Tejas
• CultureMap Austin
• Google Scholar: Z’Tejas
• CBS Austin
• Encyclopedia Britannica: Z’Tejas
• Community Impact
• Google News: Z’Tejas