Austin-based restaurants expanding to Kyle with nudge from incentive program


AUSTIN (KXAN) — Several Austin-based restaurants have recently announced they’ll be expanding south to Kyle.

The City of Kyle is in for a taste of new flavor with places like Torchy’s Tacos, P. Terry’s, Z Tejas and more moving to the area.

“There’s not enough sit-down places out there [in Kyle],”Chief Energizing Officer and Co-Owner of Z Tejas Randy Cohen said. “We need to have some places to park our booty-shakers out there.”

While it was the corridor that caught the attention of P. Terry’s, it was Kyle’s business incentive program that attracted Z Tejas. The city program helps businesses with up to 100% of its sales and property taxes.

“It’s kind of a natural part of our growth strategy, that’s been going on for the last 18 months or so…and it’s really a part of that I-35 corridor that’s between Austin and San Antonio,” P. Terry’s CEO Todd Coerver said.

“The restaurant business is not easy, so some of the tax paying incentives were a big factor in us saying, ‘Yeah, let’s come into the Kyle loop of love,'” Cohen said.

Kyle’s incentive program has been established for about a year and a half now.

“We sat down and said how can we make the city more attractive to the restaurant groups because we knew we were growing in population to the point where it was about to be time to land some of those restaurants,” Kyle Mayor Travis Mitchell said.

The incentives are capped at three years for each business.

“It’s designed to provide that nudge that some of these restaurants need,” Mitchell said.

For Z Tejas, recovering from pandemic losses, the timing couldn’t feel more perfect.

“People want to get out, they’ve been cooped up for a couple of years now,” Chief Operating Officer and Co-Owner of P. Terry’s Robert Nethercut said.

Cohen is excited.

“I think if you grow in the right places, where people are hungry for you to come out … like Kyle. You’re going to do really well,” Cohen said.

According to the City of Kyle, there are roughly six businesses that are making expansion plans to Kyle, with an interest in taking advantage of its incentive.

P. Terry’s and Z Tejas are expected to open in the spring and fall of 2022.

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