Iconic Tex Mex restaurant shutters location, down to one store

Trudy's
Trudy's North Austin location on Burnet Road is now the only Trudy's location.
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Sahar Chmais
By Sahar Chmais – Staff Writer, Austin Business Journal

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A nearly 50-year-old Tex Mex restaurant chain is down to its last location. But a new CEO plans to revive the iconic business.

Trudy's, a longtime local Tex-Mex chain, is down to one restaurant, although its new CEO is aiming for a revival.

The company announced May 6 on social media the permanent shuttering of its "south star" location in South Austin at 901 Little Texas Lane near the intersection of I-35 and Stassney Lane. The only remaining restaurant is Trudy’s North Star on Burnet Road. In 2022, UpStreet Trudys LLC purchased the 4.7-acre South Austin property, valued at more than $3 million, according to Travis County records.

Scott Taylor, Trudy's newly minted CEO who took the reins at the end of March, said the company has offered to employ all of the south location's employees at the north location. He said many are taking him up on the offer.

"It is terrible to close a restaurant, especially one with such a rich history in the market," Scott said in an email. "I knew of this plan at that time but was excited to come aboard anyhow. I experienced Trudy's as a guest for the first time in 1995 at the Texas Star location [formerly on 30th Street] and have been a couple of other times after that. Trudy's is an amazing brand and I want to bring it back to its glory in Austin and beyond." 

The iconic Tex Mex chain that opened in 1977 has defied the odds with its longstanding business. Statistics find that only 16% of the roughly 46,000 food service and accommodation businesses in the United States that have opened since March 1994 are still operating, according to data from the Bureau of Labor Statistics.

Trudy’s filed for Chapter 11 bankruptcy protection in 2020 after sinking $4 million into debt, and it was purchased by North Carolina-based private equity firm Hargett Hunter Capital Management LLC.

When Trudy's was purchased out of bankruptcy, it owned three restaurants: Trudy's North Star, Trudy's South Star and South Congress Cafe.

“Plans for the future growth of Trudy’s is in the works, and we are looking to re-engage with the local artists and re-energize some of the cool elements in the iconic North Star location while we look to bring new locations to the Austin market,” according to Trudy's social media post.

In 2021 the company revamped its South Congress location — South Congress Cafe — into a seafood spot called Trudy’s Del Mar. The restaurant closed about one year after it opened.

Deadline: Monday, June 10, 2024

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