For 28 years, Austinites and visitors alike flocked to Shady Grove like a moth to light, a beacon of all things margaritas, live music and green chile burgers. It’s been five years since the South Austin institution shuttered its doors in May 2020, one of a series of closures amid Austin’s changing business landscape and rapidly escalating rental rates and costs of living.
Five years on, a new concept from Shady Grove’s owner and proprietor, Rusty Zagst, is emerging just south of the Capital City. A Little Shady Fast Casual Restaurant and Tavern is in development in Kyle, according to new filings with the Texas Department of Licensing and Regulation registered on July 17. The $2.5 million, 12,638-square-foot project is expected to begin construction in August and wrap up work in February 2026, according to the TDLR. All filings are subject to change without notice.
The upcoming restaurant is planned in a burgeoning commercial corridor in Kyle, located near the Kyle Crossing shopping plaza and in the same retail block as the likes of Panera Bread, Nothing Bundt Cakes and Black Rock Coffee Bar. During a June 24 Kyle Planning and Zoning Commission meeting, project heads requested a conditional use permit for A Little Shady in the Kyle Market Place District, with the property set to include an enclosed building, an exterior restroom facility and an outdoor covered patio to host “ambient music.”…