City Council shot down a request from Torchy's Tacos to allow alcohol sales at its South Congress Avenue location—although the eatery may end up allowing patrons to bring their own beverages or offer free alcohol instead.

The setup

Austin code blocks businesses from selling alcohol within 300 feet of churches, schools and hospitals without specific approval. The South Congress Torchy's is located across an intersection from Lively Middle School less than 150 feet away, which led restaurant representatives to seek a waiver for the city restriction.

Success Foods Management Group LLC, which does business as Torchy's, sought to allow alcohol sales with a limit during school hours and around after-school activities. The company said the plan wouldn't negatively impact the school or student safety.

Torchy's latest waiver request received pushback from community stakeholders including Austin ISD, Lively's parent-teacher association, Central Texas Interfaith, and South River City and Bouldin Creek neighborhood groups. AISD Trustee Lynn Boswell said district officials opposed the proposal given concern about children's access to alcohol, safety for walking and biking to school, and given the "commonsense" city rule.

“We can’t give them special treatment because their queso is good. We need to oppose these waivers consistently to avoid setting a precedent for future waivers," Gretchen Otto, a parent of a Lively student, told council.

The proposal was supported by Phoenix House Texas, a substance abuse organization the company supports.

"What sets Torchy's Tacos apart is their genuine compassion and commitment to making a difference in the lives of others," President and CEO Drew Dutton wrote in a letter. "They prioritize access to care and recovery efforts not just as a corporate responsibility but as a deeply held value ingrained in their culture. Their dedication to our organization and the patients we serve is evident in their consistent support and unwavering advocacy.

What happened

After a brief review Oct. 10, officials unanimously rejected Torchy's request. However, alcohol may still end up at the establishment under what council members called a "loophole" in Austin's rules.

Jessica Kirker, Torchy's vice president of legal, said rising rents along South Congress led Torchy's to consider new options like alcohol sales to avoid shutting down. She noted the chain's plans to close its Guadalupe Street location this fall as an example of what could happen to the south location without more revenue.

Now, Kirker said the business may start allowing customers to bring their own drinks or potentially offer alcohol for free to encourage more visits. Those options would be permitted without further city approval, although Kirker noted it'd be more difficult to control onsite consumption.

“If not granted a waiver, Torchy’s will have to explore other alternatives," Kirker said. "A likely alternative is Torchy’s becoming a bring-your-own-beverage establishment. As such, there would be virtually no restrictions on hours alcohol could be consumed on the property, thus defeating the safety concerns of the opposition, which are otherwise addressed by appropriate restrictions outlined in our request.”

Kirker also said the request should've been granted as other nearby businesses already sell or give away alcohol under previously-approved waivers, or with operations that were grandfathered in before current rules went into place.

What they're saying

Mayor Kirk Watson was skeptical of Torchy's claims, and its plans to turn the business into what he called the "wild, wild West of BYOB," under an approach he said "flies in the face" of city rules.

“It was good to have a public hearing on this so we get to see what Torchy’s is really about," he said.

Council member Mackenzie Kelly said she hopes to avoid similar situations in the future.

“It’s absolutely tragic that we’ve found ourselves with a loophole that we want to avoid people taking advantage of, especially to protect our children," she said. "I would be interested in closing that loophole.”

In a statement, Torchy's spokesperson Morgan Hendrix said the business was "very disappointed" in council's decision following community engagement on the topic and a proposal to limit alcohol offerings during school hours.

"When Torchy’s first opened the South Congress location in 2016, our original alcohol waiver request was withdrawn based on concerns raised by the community. With this waiver submission, we carefully considered those concerns and resubmitted a plan that incorporated safety measures, which were ignored and not addressed within the City Council meeting today," she said.

Torchy's is now exploring its options at the location, Hendrix said.

Also of note

A separate alcohol sales request from Wheatsville Food Co-op for its South Lamar Boulevard location, also situated near a school, was postponed until later this month. The proposal is also opposed by AISD