The setup
The historic Zilker Café has been shuttered for nearly a decade and currently serves as a ticket window for Barton Springs Pool. Multiple attempts to revive the concession stand have stalled out due to factors like building renovations, the COVID-19 pandemic and a nearby construction project, leaving the facility empty since 2016.
Austin moved to restart operations in 2019 and a vendor was selected, but that deal eventually fell through. The city again solicited concession operators in 2023 but no selection was made.
Additionally, the Parks and Recreation Department sought to permit the sale of alcohol at the cafe in 2021. However, public pushback and safety concerns led the Parks and Recreation Board to reject that plan twice and the proposal was eventually voted down.
The city opened yet another solicitation to run the cafe earlier this year, drawing just one formal response. City staff recommended working with that vendor, Legacy Hospitality and Entertainment Group LLC, and City Council is scheduled to authorize a contract Aug. 28. However, officials questioned why the opportunity didn't attract more local interest and may now restart the process with the intent of allowing beer and wine sales in the park.
A closer look
The ban on alcohol sales at the concession stand has been repeatedly referenced as a barrier that's stopped local businesses from running the cafe and kept the city from bringing in more revenue.
The impact of major Zilker Park events like Austin City Limits Music Festival or the Trail of Lights and required profit-sharing with the city were also cited as top issues by staff.
More than 420 potential vendors including local options were initially notified about this year's Zilker Café solicitation. In the end, only three businesses participated in a city informational meeting and none ended up seeking the contract. Financial worries, including some related to the alcohol prohibition, caused many not to apply, according to staff.
Zilker Café operations have been expected to bring in about $100,000 in annual revenue, meaning the facility's closure for nearly a decade has cost Austin about $1 million. The previous vendor chosen in 2019 projected beer and wine sales could generate $150,000-$200,000 in additional annual revenue, according to staff, totals that would likely be even higher today.
The outlook
Despite past resident opposition to beer and wine sales near the pool, that idea now has some support at City Hall. It remains to be seen whether the change will be implemented or if area concessionaires would be more responsive with that allowance.
Council member Krista Laine said local vendors have signaled Austin's current plan for the Zilker Café isn't workable and that the city could revise its approach. Council member Ryan Alter noted alcohol is already sold near to public swimming spots, like Deep Eddy Cabaret and Pool Burger steps away from Deep Eddy Pool. And council member Chito Vela said he'd "absolutely" vote for a change given the difficult margins in food service without alcohol, and with consumption already taking place around the springs and Zilker Park.
"We are strapped for revenues. ... We don’t have a bunch of opportunities, but whenever that appears we have to take that revenue-generating opportunity and maximize those revenue-generating operating opportunities," he said. "And this idea that there’s no drinking at Barton Springs, I mean, there’s plenty of drinking at Barton Springs.”
The existing alcohol ban also drew some skepticism when the Parks and Recreation Board reviewed the vendor contract this spring, although it was still recommended. Several members pointed to food service challenges without alcohol sales and the negative impacts of the cafe's extended closure for the city.
"We have empty concessions, and then a world that I think has a business model that may make it difficult to fill them," Vice Chair Kathryn Flowers said in June. "Nothing on this specific vendor, but I’m just more concerned about the broader picture of, will we be having this conversation again in two years because this vendor decides, ‘OK, this business model isn’t functioning?'"
Quote of note
“My belief is there’s lots of alcohol consumption happening in and around the pool. I think when we are able to control and bring in a licensed provider that’s able to really monitor what’s happening, I think we’re going to be in a better space," Parks Director Jesús Aguirre said. "Certainly our concern when folks go into the pool is going to be life safety. ... If this were to change and we actually had alcohol sales, we’d want to make sure that we had a plan to monitor that more closely.”
What's next
The contract Zilker Café vendor contract could be advanced this week. However, City Manager T.C. Broadnax said staff may withdraw the item with consideration for a possible new solicitation and alcohol permit process. That decision could be made Aug. 27, according to the city.
Chief Financial Officer Ed Van Eenoo also noted Austin has recently filled some of its vacant spaces with area businesses, like Café Crème at the Central Library or The Austinite Market now coming to City Hall. Looking ahead, he said council could promote more local opportunities if they adjust policy for future leases.
"There is flexibility that would be provided to us if we treated these as a real estate transaction in terms of bringing in a local business," he said. "There is a whole litany of state law we have to follow when we treat these as a contractual solicitation, but we don’t need to do that.”
