"We look forward to honoring [El Mercado's] 40-year commitment of keeping it weird and serving up good food & Austin hospitality," said 2 Dine 4 president and managing partner Stephen Shallcross. "We'll continue our tradition of thoughtfully preserving Austin icons that began with Arkie's Grill being transformed into Sawyer & Co. more than twelve years ago."

One longtime Mexican restaurant is closing in Austin and a trusted younger taco joint is taking over. El Mercado Restaurant & Cantina South, known for live music and classic Tex-Mex dishes with some barbecue twists, is closing after 40 years this month, and De Nada Cantina, known for both traditional and slightly dressed-up tacos, will open a second location that keeps some of El Mercado's dishes.

“I wanted to make sure that everybody knows that I’m alright. I didn’t sell it because I had to; I sold it because I wanted to. And I sold it to someone who gives a damn,” Villegas said of Shallcross. “The guy does an incredible job. Everything they do is incredibly great. The name’s gonna change, but they’re going to keep a lot of my food and my employees, and that makes me feel really good."

Exclusive: Beloved South Austin Tex-Mex restaurant to close after 40 years

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