When James Rios secured another piece of Center Street real estate, many people assumed he was going to open a bar.

Rios owns Centerfield Sports Bar and Grill and Desperados, a dance hall, on downtown Kyle’s main thoroughfare. But Rios, an area entrepreneur who also owns the restaurant Cleveland’s in Buda, said with every new business he opens he listens carefully to what the community wants. The response this time was coffee, he said.

“I’m not looking to turn this into a nightlife scene,” he said. “What I’m looking to do is provide a district for folks in the downtown area that allows them to have everything they need without leaving this area.”

Rios opened Grind House Coffee & Cocktails on May 15 in Kyle. The coffeehouse offers fair trade, organic coffee; espresso drinks; smoothies; juices; and soft drinks. Grind House also serves breakfast tacos, sandwiches and sweets, such as muffins and—on the weekends—Round Rock Donuts.

Grind House’s signature sandwiches contain ingredients such as hummus, peanut butter and jelly, roast beef and cheese, but customers can also build their own sandwich with their choice of bread, meat, cheese and toppings.

On Aug. 27 the business obtained a liquor license. One can order wine, beer and spirits at Grind House’s bar.

Now equipped with a full bar the coffeehouse marries coffee with alcohol in cocktails such as Irish coffee and coffee martinis. Rios said the sale of alcohol at Grind House has been slower than expected as people learn about the business’s new bar. Even so, the coffeehouse’s 25 wines are among its highest-selling items, he said.

Downtown Kyle lacks establishments that offer a varied wine selection, and Grind House meets that market demand while providing a comfortable atmosphere in which to work, study or wind down, Rios said.

Rios’ plans for the future include the completion of a 700-square-foot patio area. The outdoor seating area will have room for 23 patrons and is expected to be done by the end of October, he said.

A drive-thru window is in the works but would likely require City Council approval, Rios said. In the meantime he is aiming to bring curbside pickup to customers who place their orders online via an app that is currently being developed.

Mayor Todd Webster said Rios’ investment in downtown Kyle has added value to a once-sleepy district. With Grind House, Rios has brought balance to Center Street’s growing roster of nightlife establishments, Webster said.

“He invested in the area,” he said. “It’s hard to argue that what he did with that coffeehouse wasn’t an improvement. It takes a lot of money to do what he did there. That’s good for the community.”