"I didn't sell it because I had to; I sold it because I wanted to," Tony Villegas told the Austin American-Statesman in December, as his family handed El Mercado at 1302 S. First St. to a new restaurant group. He also said he wanted the property to stay a restaurant instead of becoming condos or apartments.
Bouldin Creek's restaurant year followed from that decision. On South First Street, the people who owned the old buildings chose what came next. Three of the four buildings have reopened as places to eat or drink, and the fourth is leased to a restaurant franchise operator. On the stretch of South Congress Avenue the neighborhood shares, the changes this year came from a fire, an expiring lease and a hotel rebrand.
Four Addresses on South First, Four Owners' Decisions
The changes on South First this year are easiest to follow address by address.
| Address | Before | After | How it changed hands |
|---|---|---|---|
| 1302 S. First St. | El Mercado, 1985 to Dec. 17, 2025 | De Nada Cantina, opened Feb. 22 | The Villegas family sold the business and property to 2 Dine 4 Hospitality Group |
| 1805 S. First St. | A 1934 house next to Lenoir | Boni's, opened March 6 | Lenoir's owners bought it with the restaurant property in 2024 after leasing for more than a decade |
| 2304 S. First St. | Little Mexico, which closed Feb. 28 | Leased to F&P Group, which has said it plans an original concept | Rosa Martinez kept the land and rented it out |
| 1417 S. First St. | 1417 French Bistro | Neighborhood Sushi, relocated from South Congress | MML Hospitality moved its sushi restaurant here |
When 1417 French Bistro closed in 2024, Eater Austin reported that the space was being redeveloped. It reopened as a restaurant too.
El Mercado's Room, Now Serving Margaritas in Pink Cups
De Nada Cantina is the second location for Stephen Shallcross's 2 Dine 4 Hospitality Group, which also runs Sawyer & Co., Lil Easy and the original De Nada on East Cesar Chavez Street. The group closed the building for about a month to update the interior. According to the Statesman, the goal was to keep the building's character while adding vintage design touches.
The menu keeps several links to El Mercado. De Nada still serves El Mercado's salsa, and the enchiladas and nachos nod to the old restaurant. The new parts are handmade tortillas pressed and cooked on a comal, a fully gluten-free menu and a larger mezcal list. The restaurant's South Austin menu currently lists weekday breakfast and lunch from 11 a.m. to 2:30 p.m. and weekend brunch from 11 a.m. to 2 p.m.
El Mercado opened in 1985, and the Villegas family has owned the land since 1971. The family owned the land long enough to choose who would come next.
A 1934 House Becomes the Bar Lenoir Never Had
Boni's started with the same kind of ownership. Todd Duplechan and Jessica Maher leased the Lenoir property for more than a decade, then bought it in 2024 along with the 1934 house next door. They turned that house into Boni's at 1805 S. First St. and opened it March 6.
"It's what has been missing at the restaurant, that feels like we have been apologizing for forever," Maher told the Statesman. She meant cocktails, coffee and a bar where diners can have a drink before or after a meal at Lenoir.
The bar is named for Maher's great-grandfather Bonaficio, who was born in Spain. Jessica Sanders of DrinkWell designed the drinks list, which includes a Carajillo made with reposado tequila, chicory coffee liqueur, Licor 43 and mole bitters. The interior uses reclaimed wood from the original house, and there is a TV at the end of the bar for sports. "It's a cool old building, and we're just gonna let it be that," Duplechan said.
Little Mexico's Land Stayed in the Family
At 2304 S. First St., the owner also kept the land. Rosa Martinez opened her first restaurant, a seven-table spot in North Austin, in 1986. She later bought the South First property in 1992 through a lease-to-own deal with its previous owner. Over the years, Little Mexico grew to 50 tables and room for more than 200 guests. It also hosted Tejano Music Coalition meetings and twice-monthly tardeadas, afternoon live-music dances, with groups like Conjunto Los Pinky's.
When the restaurant closed on Feb. 28, Martinez kept the property instead of selling it. The Statesman reported that the land is assessed at about $3 million by the Travis County Appraisal District. Martinez has rented it to Bob Lozano, whose F&P Group operates Dairy Queen, Schlotzky's and Cinnabon franchises. Lozano's group, which includes two Austin restaurant veterans, has said it plans an original concept for the site. The food also continues elsewhere. Chef Jose Tomas Esquivel, who started cooking for Martinez at 19, runs Tex-Mex Banquettes catering, and Martinez said he'll use the restaurant's recipes.
The Statesman described the street as "Austin's Mexican Mile," once home to Jovita's and La Mexicana Bakery. This year, both of those properties went to restaurant operators, one as a sale and one as a lease.
South Congress Had a Harder Year
The neighborhood's eastern edge had a different year. In February, Vespaio closed at 1610 S. Congress Ave. It had been there since 1998, and its sister restaurant Chapulín Cantina closed with it.
On Sept. 6, a fire started in the vent hood system at Perla's Seafood & Oyster Bar at 1400 S. Congress Ave., spread up through the roof and affected every floor of the building. The Statesman reported that the restaurant will stay closed until repairs are made, and its spokesperson said it hopes to reopen promptly. Perla's is an MML Hospitality restaurant, as is Neighborhood Sushi, which had already moved from South Congress to the larger space at 1417 S. First. The new location has more seating, a bigger bar and outdoor space. Executive Chef Jorge Garcia now adds Wagyu, grilled king trumpet mushrooms and chicken oysters to the yakitori menu.
Taste of Ethiopia's South Congress location closed at the end of September after nearly a decade. Owners Woinee Mariam and Solomon Hailu said rising grocery and operating costs, along with the higher rent that would come with a new lease, led to the decision. They continue to run their Pflugerville location. This was the one case in the area this year where a lease decided whether a restaurant stayed.
Across the avenue, the South Congress Hotel at 1603 S. Congress is being converted into The Standard, Austin, with reopening planned for 2027. When the conversion was announced, KVUE reported that Mañana, the hotel's coffee shop, was expected to stay open during the renovation. Farther north, at South Congress and Riverside, City Council approved zoning in September 2025 to redevelop the six-acre Ego's site. The developer told the Statesman that Ego's has a deal to return in the new project.
Through the End of the Year
The rest of the season's calendar is close to home:
- Zach Theatre Holiday Market. The free outdoor market at The People's Plaza runs Nov. 21, Nov. 28, Dec. 12 and Dec. 19 from 3 to 7 p.m. A Kids' Market is set for Dec. 5 from noon to 3:30 p.m. Details are on Zach's market page.
- Bouldin Creek Neighborhood Association. The steering committee meets Dec. 1 at 1307 Newton St., and the general meeting is Dec. 8 at 1120 S. Congress Ave., according to the association's calendar.
- Armadillo Christmas Bazaar. The bazaar runs Dec. 12 through 21 at Palmer Events Center, 900 Barton Springs Road.
- Ann and Roy Butler Trail. TxDOT work at the I-35 end of the trail limits access along part of the south shore through early 2027, according to the city's parks closure page.
For more on the neighborhood's streets and housing, see our Bouldin Creek neighborhood page and our earlier guide to Bouldin Creek's cafés, trails and bungalows. For the Travis Heights side of South Congress, see our story on the warm well under Big Stacy Pool.
Choosing the next use for a long-held property in Bouldin Creek, and the right buyer or tenant for it, takes discretion and a clear view of the options. To talk through that decision for your own property, request a private consultation with Robin Banister.
