Almost too good to be true’: Katz’s Deli is coming back to Austin after nearly 14 years

KUT NEWS Article: https://www.kut.org/business/2024-09-04/austin-tx-katzs-deli-reopening-coming-back

When Katz’s Deli opened in 1979, it became the perfect place for those partaking in late-night Sixth Street adventures to get a bite to eat. Its 24-hour operating schedule led to the creation of its slogan, “Katz’s Never Kloses.” But unfortunately, Katz’s did close in 2011.

Now, nearly 14 years later, the restaurant is staging a comeback to its original location, along with its New York-style pastrami and Reuben sandwiches, signature crispy fried pickles and its cheesecake shake.

The spot on West Sixth Street and Rio Grande Street shut its doors after 32 years in business. Owner Marc Katz had filed for bankruptcy twice in six years, though the company’s presence in Houston remained after the Austin location shuttered.

But last month, Barry Katz, Marc’s son, bought the building with his wife, Lisa, during an auction at the U.S. Bankruptcy Court in Austin as a step in their plan to bring the restaurant back to the capital city.

“I was eight years old when my parents opened the restaurant,” he said. “I remember opening day… it’s where my dad taught me the foundation of being a restauranteur.”

Katz’s is where Chris Walker fell in love with corned beef.

“I had never heard of it. I always thought it had to do with actual corn,” he said, adding that he was also fond of the matzo ball soup. “There are so many good memories hanging out with my friends.”

Walker said he and his high school friends would drive down from Round Rock to swing dance at Steamboat 1874 club in the ’90s. After a long night, they’d stop by Katz’s for a bite and to people-watch.

“It was very unique for a bunch of kids from the suburbs,” he said. “To be in the middle of the nightlife… Katz’s gave us that taste of being in a big city.”

He said he’s excited for the chain’s return.

“I’m back in the suburbs now, so I don’t see much of a nightlife anymore,” he said. “But I’d drive in for a corned beef sandwich and matzo ball soup.”

The new owners are planning to renovate the building and restore some of the look and design of the original deli in the ’80s and ’90s.

The building is currently home to the bar Play on West 6th. Katz’s plan is to lease out the second and third floors of the building, according to a company spokesperson.

Barry and Lisa currently own the company and its four locations in Houston. Barry said they were already planning to open a new location in Austin when, by chance, the original building came up for sale.

“To get the original location is beyond our wildest dreams,” he said. “Almost seems too good to be true, but it is true.”

Barry said it will be a nostalgic return to a place he once called home.

The company doesn’t have an estimated timeline for the reopening at this time.