Austin360 blogs > Dale's Table > Archives > 2008 > June > 19 > Entry
Castle Hill to close
Castle Hill Cafe, the restaurant that became famous as Austin’s affordable fine-dining spot, is closing at the end of this month after more than two decades in business because it has become too expensive to operate a fine-dining venue.
“It’s too hard, to be honest, way too hard for us,” owner Cathe Dailey said Thursday. With food and gas prices soaring, it seems like each day brings another cost increase in one or more items, she said.
Plus, the downtown dining scene has changed dramatically in recent years.
“The demographic has changed so much around us,” Dailey said. “Eighteen years ago when we moved into this building, we were considered on the edge of town. Now downtown is surrounding us with condominiums.”
Those new residents, motivated by DWI laws that encourage people to avoid drinking and driving, “are looking for neighborhood restaurants they can call their own,” she said.
So Daily is closing Castle Hill on June 28 and taking at least a month for a major makeover of the place before reopening the space at 1101 W. Fifth St. as Corazon, an interior Mexican restaurant with a full-service bar and lounge.
“It’s been the greatest ride,” Dailey said. “I’m not horribly sentimenal about it. It’s another side of the coin for me. We sort of returning to our roots as a place that’s more afforadable, more available to more people.”
See more details in the story in Friday’s American-Statesman Business section.
Comments
Click here to report comment abuse.
By Former Austinite
July 29, 2008 5:33 PM | Link to this
Castle Hill has always been a favorite of mine and I am sad to hear it closing, but the reasoning makes no sense whatsoever as many people have already stated. Some of the best restaurants in any city are the unique, quaint places, commonly situated in converted houses and such. It’s a shame that these places are mysteriously disappearing while PF Chang’s and Chili’s seem to be popping up all over the place. But seriously, a Mexican restaurant?!?! Does anyone but native Mexicans actually eat this everyday? Are these sophisticated condo dwellers actually going to “call this their own”? Cheese, rice, beans and some kind of meat - I guess it’s at least easy and cheap to make. But just so you know, you’re providing nothing other than an alternative to a clientele currently content to refer to Kraft macaroni & cheese and Ramen noodles as dinner.
By Nancie
July 12, 2008 1:31 PM | Link to this
Hmmmmmmmmm…same place, walking distance from a lot of condos, yet another Mexican restaurant????? Tooo Bad…
By Priya
July 11, 2008 9:07 PM | Link to this
How sad. Castle Hill has been our favorite restaurant since we moved here 12 years ago. Good luck on the new restaurant, we’ll be in to check it out.
By jolie
July 2, 2008 10:48 PM | Link to this
Actually a good thing. This place should have shut down a long while back, due to their mouse and roach infestation. Hopefully new place won’t exhibit that kind of carelessness.
By MWH
July 2, 2008 9:30 PM | Link to this
Dale,
There has to be more to this story than this. It makes no sense.
What gives?
By Kir
July 2, 2008 6:44 PM | Link to this
Agree that the rationale doesn’t seem too sound - however, I noted in my last two visits to CH, I felt the quality of service and cleanliness had gone downhill. I still really love the food and am sad that another mexican will take it’s place. We don’t need more of those.
By Jennifer Dillon
July 2, 2008 5:20 PM | Link to this
This makes me very sad. Castle Hill was my favorite restaurant in Austin! It was a tradition of mine to treat new friends to dinner there. I’m glad I went last month for that reason.
I agree with poster “Mbd”- the reasoning doesn’t make sense as presented. I’m guessing the real reason for the switch is cheaper ingredients.
By jceast
June 29, 2008 11:19 PM | Link to this
I thought this place was a museum, it looked dark and closed when I would drive by. I agree with one of the posts, the owner does not make sense. HE now has a bigger market, with elements of the past and the present…i see a lot of cafe’s around town thriving with business. He needs a better business plan and pulse of the city.
By Brooke
June 29, 2008 7:25 PM | Link to this
NOOOOOOO! This is my favorite place in Austin. My husband and I go every year for our anniversary. What a loss!
By Tim
June 29, 2008 2:15 AM | Link to this
We are looking for a good upscale Chinese resturant in the Austin area. Can’t seem to come up with one???
By calaustinite
June 28, 2008 1:52 PM | Link to this
so let me get this straight…castle hill is going out of business because more people are moving into the area surrounding the restaurant who can afford higher prices and prefer to have a place to eat within walking distance? did I miss the chain of logic or the owners of castle hill graduates of the mccombs school of business?
By Pea
June 27, 2008 7:08 PM | Link to this
Have you seen corn prices? Austin has pegged their Tex-Mex and BBQ already. If the intent is truly to update, then INNOVATE as you have for two decades.
By jen
June 27, 2008 7:57 AM | Link to this
Another Mexican restaurant? Across the street from Z Tejas? What?!#! We would drive down from Northwest Austin to go to Castle Hill, but we have a five mile radius for Mexican food :)
There is no Mexican food worth driving a distance for.
I’m sad and angry at the same time….they could have raised prices (we would have paid more), they could have made it more casual. If you are going to change your restaurant, don’t change it to a Mexican restaurant!! I’m sorry, I’m still in the anger stage!
By Don-ya
June 26, 2008 11:14 PM | Link to this
People don’t understand that even a great restaurant can’t make any profit on just special occasion fine dining in today’s economy. No one likes to work hard for free while delivering a great product that the public only supports you on once or twice a year. I understand where the owners are coming from and I support their decision to make a change! Best of Luck.
By Chuck H W
June 25, 2008 10:01 PM | Link to this
I feel like an old friend has passed. I loved that place and I loved sharing it with others. Interior or border Mexican: this town has too many. What about the sister location, Mirabelle? I hope it stays open. Castle Hill will leave huge shoes to fill. My girlfriend and I called it our restaurant.
By Blinzia
June 25, 2008 2:58 PM | Link to this
Oh no!! Living in L.A. affords me great dining but when I go back home, one of my favorite haunts is Castle Hills Cafe - where am I going to find that wonderful Chopped Chix Salad???
By Denise
June 25, 2008 12:29 PM | Link to this
I can’t believe they are changing to a mexican restaurant. This was my favorite place to eat!! Lunch or dinner and of course special occasions! I will miss it terribly!
By Former Castle-Hill-ite
June 24, 2008 8:13 PM | Link to this
I agree with bella. “I’m not horribly sentimental about it”? Well, I AM! I LOVE Castle Hill! It’s been my favorite restaurant since I moved here as a young pup in 1992 and I’ve always saved it for special occasions such as Valentine’s, B-days, or for out-of-town guests so I would never tire of their fabulous mexican chile-lime salad with the little blue corn empanadas … and omigod, the best melt-in-your-mouth tenderloin I have EVER had (to include all the best steakhouses in Austin) … I don’t plan to patronize the new place, you can find me at Mirabelle in NW Hills. It’s closer to my house anyway.
By CLP
June 24, 2008 6:25 PM | Link to this
As a former employee, I was sad to hear this news. I am a confessed-addict of the Mexican and Mediterranean salads and always looked forward to a return visit. Will Mirabelle still be around??
By Chub512
June 24, 2008 10:41 AM | Link to this
I think this is a sad example of a restaraunt just not keeping up with the times. I remember when I left austin fifteen years ago, Castle Hill was one of the best places in town and certainly could have been called fine dining by local standards. It was always on the list for special occasions when I could scrape up enough of my student income for something nice. Having just moved back nine months ago, I checked out Castle Hill again and have to say for the prices it didn’t come close to what the curent crop of fine dining restaraunts in town are offering in terms of atmosphere, creativity and quality of food. Don’t get me wrong the food was fine and of decent quality, but I would no longer call it fine dining or consider it for a special night out anymore. I agree with Mbd’s observations. People like bella will hide behind the keep austin weird ethos and blame the “newcomers”, but it’s really just a case of bad business.
By JJ
June 21, 2008 5:34 PM | Link to this
Mbd, why so much anger? Sounds like you will miss the place(like the rest of us), otherwise you wouldn’t put so much negative energy into it. Anyway, You missed two obvoius things: 1.Cathe Dailey is a woman, so give her the credit she deserves & don’t assume every business owner is a man. 2.Cathe has a vision of providing great quality food & service at a reasonable price. The concept she has would continue to work..but not at a reasonable price, which means you shrink your potential clientele. Being quick to point out the negative, I’m sure you too are frugle with your money.
Given Castle Hills track record,I feel confident that the new restaurant will be as good or better than any mexican restaurant in town, and affordable, too.
By Ann
June 20, 2008 3:54 PM | Link to this
I am just crushed. Castle Hill has been a constant in the ever changing Austin restaurant scene. We have celebrated many events there. The restaurant may be closing, but our memories of the wonderful food and the great times we had there will remain.
By H
June 20, 2008 3:07 PM | Link to this
Ridiculous! One of the best restaurants in town to be reborn as a Mexican place? I feel ill.
By KLMAW
June 20, 2008 2:59 PM | Link to this
I had been a fan of Castle Hill until today and would have tried Corazon, but my experience at lunch today was inexcusable.
My husband and I were having lunch and from the time we sat down until they brought out our food we had two baby roaches crawling on our table.
Instead of making a scene, we simply moved to the next table (one set up for four instead of two) and discreetly told the hostess who was wondering what we were doing what happened. She then had us pick up all our stuff and move several more tables over to a table for two, which was incredibly annoying.
Meanwhile, two people promptly came over to the table where were sitting with the bugs and began cleaning it. No one, mind you, came over and apologized for what had happened to us or for the inconvenience of having to move.
We proceeded to finish our meal just to get out of there. It also bears noting that they seated another diner at the table we moved from because of bugs.
Finally, instead of offering to give us our meal free because of what we experienced and because we were nice enough not to cause a scene during their busy lunch hour, we were charged for the full amount. Pathetic.
I hope that you readers think twice before giving you hard earned time and money to Castle Hill or their new restaurant lest you be treated to roaches and terrible service.
By Jenny
June 20, 2008 1:35 PM | Link to this
Oh no! Their vegetarian Mediterranean salad is possibly the best salad I have ever had. Instead of converting to yet ANOTHER Mexican restaurant (with Z Tejas literally right around the corner, that doesn’t seem wise), I wish they would look at other options such as a transition to a more casual evironment.
By Dave Wilson
June 20, 2008 1:29 PM | Link to this
This is terrible news. To me, the cuisine, decor and service at Castle Hill made it the quintessential Austin restaurant. I’m sure I’m not the only one who is going to miss it a great deal.
By Charles
June 20, 2008 11:28 AM | Link to this
Any chance of getting some recipes? Even just how they make their Cheddar-Poblano BBQ Burger would do!
By Tom Brayshaw
June 20, 2008 8:19 AM | Link to this
Castle Hill became our anniversary restaurant. It was always worth the drive from Fredericksburg for the creative menu and recipes. We will miss it.
By bella
June 20, 2008 7:10 AM | Link to this
Thats what happens when new owners don’t have the same investment emotionally about a long time Austin establishment. They want to serve the new condo crowd. Sad.
By Mbd
June 19, 2008 9:22 PM | Link to this
The things this guy says make no sense. If neighborhood restaurants are all in vogue, he now has a rapidly growing neighborhood to draw from. If DWI laws make it less desirable for downtowners to leave their area, he should be set. If people in the outskirts really like CH, most will get there, but maybe less often; that I understand. But he has more than enough new d’towners with large disposable incomes to make up for them. As far as opening a new Mexican joint goes, is there any shortage of those ????
If the constant increase in prices of gas and food make him miserable, why open another restaurant in the same space that people aren’t going to ?
No wonder he’s going out of business. He’s run out of common sense.
By southside_observer
June 19, 2008 5:48 PM | Link to this
Sounds like it’s the Johnston High School of restaurants.
By odam
June 19, 2008 4:11 PM | Link to this
What a shame