The Texas Department of Transportation’s ongoing Interstate 35 expansion project in Central Texas has spurred a dramatic transformation in the state’s capital city. More than 100 properties along the I-35 corridor have been forced to close or relocate over the past few years as they were in the path of demolition.
From a popular Austin-based burger chain to a Latina-owned day care, Austin has lost several beloved spots in the downtown area of the city. TxDOT began working on widening an eight mile stretch of I-35 from U.S. 290 East to Ben White Boulevard and SH 71 back in 2024.
Here are some of the businesses that have closed from the I-35 Capital Express Central Project:
P. Terry’s guests hold up complimentary T-shirts with a sign saying goodbye to the chain’s Capital Plaza location off Interstate 35 in Austin on Friday, June 26. (Devon Messinger/Courtesy of P. Terry’s)
P. Terry’s
Austin-born burger chain P. Terry’s announced earlier this month that it would be closing its Capital Plaza location off I-35. The company held a farewell celebration for the restaurant located at 5701 N. I-35 before closing it for good on Sunday, June 28.
Escuelita del Alma day care in Austin, Texas. (Cristela Jones/MySA)
Escuelita del Alma
After 24 years, Spanish-immersion day care Escuelita del Alma was forced to close its 32nd Street and I-35 location. The center ended up relocating to a new space in East Austin at 3613 Bluestein Drive.
Progress Coffee
In late June 2025, Progress Coffee closed its doors to vacate in time for the project to demolish its building.
Worley Printing Company in Austin, Texas. (Cristela Jones/MySA)
Worley Printing Company
After 53 years in business, Worley Printing closed back in 2025 after receiving a notice from the state about the I-35 expansion project. Co-owner Gayle Worley told MySA then that she and her brother who run the business decided to retire and close instead of relocating.
Taquerias Arandina
Austin Mexican restaurant Taquerias Arandinas had to close its location at 5725 N. I-35. However, KVUE reports that the restaurant has three other locations that will remain open throughout the city.
Taqueria Los Altos relocation sign in 2025. (Cristela Jones/Cristela Jones/MySA)
Taqueria Los Altos
Taqueria Los Altos, which once stood near Worley Printing Company and Escuelita del Alma, was also impacted by TxDOT’s I-35 expansion project. The restaurant relocated to 6700 Middle Fiskville Road in Austin.
Stars Cafe is set to close Sunday, November 10 due to the ongoing I-35 expansion project in Austin, Texas. (Emily Hernandez/MySA)
Stars Cafe
In 2024, Stars Cafe announced it would be closing its 24/7 restaurant off I-35 after 58 years in operation. Its last day at 3101 N. I-35 Frontage Road was in 2025.
This article originally published at Texas businesses forced to close in Austin from I-35 expansion project.