Shady Grove becomes latest longtime Austin restaurant to permanently close

Another longtime staple of the Austin restaurant scene will not reopen.

Shady Grove, located at 1624 Barton Springs Road, announced its permanent closure May 11, an employee confirmed by phone at the restaurant. There was no reason given for the closure.

The closure comes three weeks after the permanent closure announcement of Threadgill’s on North Lamar Boulevard after nearly 40 years and less than a month after the owners of Magnolia Cafe said they would not reopen their original Lake Austin Boulevard location, which opened in 1979. The Magnolia Cafe location on South Congress Avenue remains open.

Mike Young and John Zapp, the founders of Austin-based Tex-Mex chain Chuy’s, opened Shady Grove in 1992. The following year, Shady Grove started hosting its free live concert series, “Live at the Grove,” which continued into 2020.

While Tex-Mex standbys Chuy’s and Baby Acapulco remain open for takeout on Barton Springs Road, the area has seen a fair amount of recent turnover. Zax Restaurant and Bar closed after more than 15 years in December, and in October, Uncle Billy’s Brewery and Smokehouse announced it will relocate to Dripping Springs.

More recently, a longtime local Austin spot relocated to the Barton Springs area. Ski Shores Cafe, which has been an institution along Lake Austin since 1954, opened its Barton Springs Road location May 1.