Co-owner of shuttered Shady Grove opening spinoff restaurant

rendering-of-a-little-shady.png
News
Jul 23, 2025
Sahar Chmais

An evolution of the shuttered Shady Grove is being brought to life in Kyle by a co-owner of the iconic Austin restaurant and hangout. 

The new restaurant and tavern, called A Little Shady, is opening at 5172 S. Farm to Market Road 1626. Rusty Zagst, who co-owns the project with David Ryan, said it will be a Shady Grove concept but didn't provide full details. Zagst previously worked his way up from busboy to managing partner of Shady Grove, which closed in 2020 after almost 30 years of margaritas and live music performances.

A Little Shady will provide another restaurant option in Kyle, a city that has seen a boom in chain eateries in recent years. The city recently lost Z'Tejas after it shuttered in late June, but it has been seeking out other local operators, previously providing incentives for Hays Co Bar-B-Que, for instance.

A Little Shady won approval for a conditional use permit during a June 24 meeting of Kyle's Planning and Zoning Commission. It also submitted a filing to the Texas Department of Licensing and Regulation on July 17 regarding the project.

The restaurant and tavern will sit on a roughly 1.3-acre property and have 5,600 square feet of indoor space and an approximately 4,200-square-foot covered patio with outdoor ambient music, according to a presentation during the June meeting.

Zagst said more information will be forthcoming. He confirmed the timeline in the TDLR filing, which lists a start date of Aug. 1 and completion by mid-February next year. But A Little Shady will cost more than the estimated $2.5 million figure cited in the filing, he said.

In addition to being a restaurant, A Little Shady is intended to be a place for people to socialize — some plans made available during the June meeting include a three-sided bar, fireside lounge seating, private group seating and the Shady Grove Airstream trailer retrofitted as a retail hub.

Shady Grove operated at 1624 Barton Springs Road in Austin. It was opened in 1992 by former owners of Tex-Mex chain Chuy's and closed five years ago. The restaurant was quintessentially Austin, with its proximity to Zilker Park, its strong margaritas and live music performances.

Read Original Article