A South Austin Tex-Mex institution is entering its final days, but the restaurant will be brought back to life under a new name and management in the New Year.
Tony Villegas will close El Mercado (1302 S. First St.) after service on December 17, ending a 40-year run at the restaurant his family has owned and operated since 1985. El Mercado on Burnet Road, in which Villegas is a partner, will continue to operate.
Villegas, who sold the downtown location of his restaurant in 2022 after almost 30 years of operation, says he is happily stepping off the stage and handing the reins of the south location to Stephen Shallcross and his 2 Dine 4 Hospitality Group (Sawyer & Co., Lil Easy), who will transform El Mercado into a second location of De Nada Taco…