Torchy's Tacos seeks city waiver to sell alcohol near Austin middle school

Torchy's Tacos is once again asking city officials for special permission to sell alcohol at its prominent South Congress location.

Why it matters: The homegrown taco chain has been unable to serve alcohol there since it opened in 2016 because of its proximity to Lively Middle School.

• The restaurant, which was built with an indoor and outdoor bar, sits kitty-corner to the school grounds.

Zoom in: City of Austin rules require at least 300 feet between a business selling alcoholic beverages and a school.

• But the City Council can waive the requirement for a business if it determines it's not in the best interest of the public, is not effective or necessary or for any other reason after the consideration of the community's health, safety and welfare.

Driving the news: On Sept. 12, the City Council is due to hear a request from Success Foods Management Group, doing business as Torchy's, for a waiver from the requirement.

Yes, but: Austin ISD and neighborhood groups opposed Torchy's previous efforts to get a waiver in 2014, when the company was planning the restaurant, and in 2016 — and opposition is forming again.

• The powerful, politically engaged South River City Citizens Neighborhood Association , which includes nearby Travis Heights, is opposed, as is the school district and the PTA board of Travis Heights Elementary.
• "We do not believe that alcohol sales near schools are conducive to a positive and safe learning environment," Jacob Reach, chief of governmental relations and board services for the school district, tells Axios, citing the district's blanket policy on such matters.

Of note: Other nearby businesses, such as C-Boy's Heart & Soul and Magnolia Cafe, sell alcoholic beverages, but they are grandfathered into compliance or were long ago granted waivers.

• The Torchy's site was previously occupied by Fran's Hamburgers , which didn't serve alcohol.

What they're saying: " For nearly a decade, we have been grateful to be a part of the South Congress community and neighborhood," Morgan Hendrix, a spokesperson for Torchy's, tells Axios. "As the city has grown, South Congress has become a hub for families, locals and visitors to shop, eat, and enjoy Austin's iconic neighborhood and businesses. Our SoCo location has been a must-stop for many and we would love to give our guests the full Torchy's experience, which offers our full beverage menu with hand-shaken margaritas and fresh innovative drinks."

• "When we first opened, in 2016, we heard our new neighbor's concerns about alcohol service and pulled our waiver request," she said. "We have used that time to learn from the other restaurants in the SoCo neighborhood how we can all provide a full bar experience while remaining safe and family friendly."

By the numbers: Alcoholic beverages make up as much as 15.7% of revenue at Torchy's restaurants, Torchy's officials tell Axios — and the South Congress location is the only one of the company's 126 outlets that can't serve alcoholic beverages.

The other side: "Adding yet another alcohol outlet right by the school (with an outside bar literally in view of students at recess) will have a cumulatively detrimental effect on the area around the school," a letter circulated by former Lively Middle School PTSA president Gretchen Otto to other PTA board members said.

• "We can't give them special treatment because their queso is good," Otto wrote.

Of note: The PTA has been a recipient of donations from Torchy's, which has hosted profit-sharing events at its restaurant.

• Despite its inability to serve alcohol, Torchy's has "continued to thrive and serve myriad taco options to thousands of happy customers," reads a Sept. 4 letter from South River City Citizens president Noah Balch to Mayor Kirk Watson and City Council members. "As such, Torchy's will not experience any disruption or hardship if the Council denies its application for a waiver."

Zoom out: Launched out of a food trailer on South First Street by Mike Rypka in 2006 , the company in 2020 sold a roughly $400 million stake to a private equity firm.

The bottom line: "Community members from both Lively Middle School and the neighborhood have reached out to our office in opposition to this waiver," Austin Council Member Zohaib Qadri, who represents the area occupied by Torchy's, tells Axios. "I will respect their wishes and vote no on this item."

Editor's note: This story has been corrected with Gretchen Otto's correct title.