People wait in line to visit the Paramount+ Lodge on Saturday. With the Austin Convention Center closed for redevelopment, SXSW events are spread across hotels, venues and event spaces throughout downtown. That’s caused a downturn for some convention center-area businesses.
Mikala Compton/Austin American-Statesman
As the South by Southwest Conference and Festival celebrates its 40th anniversary in Austin, this year’s festival looks different.
And while some local businesses say they’re enjoying a 2026 boom, others aren’t so happy.
Article continues below this ad
“I’ve been trying to figure out where everybody is, it’s so different this year,” said Jackie Dunn, manager of Hideout Coffee House on North Congress Avenue. “We are not anywhere near our sales numbers from last year, not even close. And we’re in the thick of it, so I can’t imagine places outside of it.”
With the Austin Convention Center closed for redevelopment, SXSW is no longer tethered to the building that once served as the event’s central hub. Instead, programming is spread across hotels, venues and event spaces throughout downtown.
One of the city’s signature events, SXSW draws crowds from around the globe. Over the decades, it has buoyed many downtown-area businesses — whether they host events or simply welcome additional traffic.
But this year hasn’t been what some expected.
Article continues below this ad
Austin restaurants, stores report less traffic during SXSW
David Dreyfus’ family has long owned Le Café Crêpe, a small cafe and restaurant located at East Second Street and San Jacinto Boulevard.
Less than a block from where the convention center once stood, the cafe typically saw heavy foot traffic from SXSW. It’s always been a big money maker, Dreyfus said, but that stopped this year.
“We have definitely felt the crunch since the convention center’s gone,” said Dreyfus, the establishment’s general manager. “This corner used to be all blocked off for SXSW going straight to the convention center. That foot traffic helped sales, but it’s not here this year.”
Article continues below this ad
Foot traffic is off because attendees are more spread out this year than in years past.
Film and TV badgeholders are still largely dominating North Congress Avenue. Music attendees are also spread across venues downtown, though that’s relatively unchanged from years prior. Innovation track badgeholders, however, are bouncing between several hotels and event spaces for featured sessions and expos.
Gus Baldwin and The Sketch performs Sunday at the Cherries Wheels Mini Ramp Skate Jam at House Park.
Sara Diggins/Austin American-Statesman
SXSW: All the celebrities spotted at SXSW 2026 in Austin: Keke Palmer, Demi Moore and more
Article continues below this ad
Even for businesses along North Congress Avenue, where several big activations and SXSW’s block party are being staged, traffic is still not the same as in previous years.
Hideout Coffee House, located inside The Hideout Theater at 617 N. Congress Ave., has been a heavily-trafficked SXSW location for nearly 30 years, Dunn said.
The space has welcomed attendees looking for a cup of coffee on their way to sessions and movie premiers and served as an event and activation venue for several years.
“This year, it just hasn’t been good, not what it used to be,” Dunn said, adding sales are down more than 30% from last year.
Article continues below this ad
She described the overall feeling of this year’s festival as “weird” and said she had hardly seen anyone from the innovation track inside her coffee shop in the past few days.
“We’re seeing a downtown for us this year, but I really haven’t seen any of the innovation people this year,” Dunn said. “Those people are the ones that are missing. And they’d have the money to spend at the front part of SXSW compared to the younger spring break or music crowds later in the week. This year is just, it’s so weird.”
Some Austin businesses still see SXSW bump
Victoria Newton, a sales associate at South Congress gift and souvenir shop Prima Dora, described a “stream of people coming in,” though customers tend to pack the store even on non-SXSW weekends.
Article continues below this ad
“Sometimes a typical weekend is a little bit busier,” Newton said. “I think there was just a lot going on downtown, like so much other stuff going on that they just didn’t really come out as much because we usually get a lot of people every weekend. But, you can see down in the street, if you look farther down on Congress, it’s totally crowded.”
“I guess we were just expecting just a little bit more,” Newton added, but noted the store still observed people from all over the country stopping by.
MORE: Here are the best SXSW 2026 free events still happening in Austin this week
But the event hasn’t been all doom and gloom for businesses downtown.
Article continues below this ad
Vico Puentes’ new store, TOMO mags, opened about three months ago, and he said SXSW has helped get his store into the public eye.
Puentes said he’s seen a lot of locals popping into this store off East Fifth Street, which is located next door to major SXSW music venue Antone’s Nightclub and on a street that features several activations.
“Having that extra exposure as people are having to move from point A to point B, has been beneficial for us,” Puentes said. “We keep seeing return customers within the week, so in my perspective SXSW has positively helped us.”
A Zoox fully autonomous robotaxi is displayed Saturday at the Line Hotel. /Some downtown businesses say the more dispersed festival crowds have affected foot traffic this year, but hotels are seeing strong occupancy.
Jay Janner/Austin American-Statesman
SXSW still fills Austin hotels
Arrive Austin, a boutique hotel on East Sixth Street, said this year’s shorter festival seems to have coincided with boosted occupancy. Jim Zito, vice president of sales and marketing for Palisociety, the hotel’s operator, said the team reported busier activity at the hotel this year.
Article continues below this ad
“Overall they felt that the city was a little slower than previous years. It wasn’t as busy,” Zito said. “However, for us, for our particular hotel, I think the reduced number of days — we actually performed. We were busier than we have been in previous years.”
Beverly Magee, regional vice president and general manager at the Four Seasons, said the luxury hotel tends to see a “significant increase” in hotel occupancy and patrons visiting its restaurant and bar during SXSW.
“Our lawn — overlooking Lady Bird Lake —has become a favorite watering hole over the years for conference goers to soak up the Austin sunshine, grab a cocktail and hear a bit of live music in between sessions,” Magee said.
The hotel on San Jacinto Boulevard opened in 1986, a year before the premiere SXSW, which focused on music as a way to support venues while students left town during spring break.
Article continues below this ad
“We are honored to have such a longstanding history in Austin and have had the great privilege of growing alongside the various evolutions of SXSW,” Magee said.
Hotel Van Zandt on Rainey Street also reported strong activity during the festival.
“SXSW continues to be an important week for Hotel Van Zandt, and we saw great engagement across the property this year,” Nick Yezierski, general manager of Hotel Van Zandt for Sage Hospitality Group, said in a statement. “While SXSW continues to evolve, it still brings an incredible creative energy to Austin and the Rainey Street neighborhood.”
Like the city of Austin itself, SXSW has been evolving for years.
Article continues below this ad
Many attendees, both visitors and locals, have said on social media and around town that this year’s festival, despite the changes, is one of the best since the COVID-19 pandemic forced its cancellation in 2020.
Still, many businesses relying on March revenue to carry them through the slower summer months are entering a difficult season.
“A lot of the businesses over here are struggling, and we’re feeling the loss of the convention center big time,” says Dreyfus. “We’re just trying to weather the storm, and hopefully SXSW comes back over here soon.”
Article continues below this ad