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How Armandos Became a Tex-Mex Destination

Posted on August 23, 2024   |   Updated on September 30, 2025

City Cast Houston Staff

Armando Palacios, founder of Armandos. (Joseph West)

Armando Palacios, founder of Armandos. (Joseph West)

Armando Palacios opened his iconic Tex-Mex restaurant in 1978 with only $100 in his bank account. But he took a leap of faith into the restaurant industry. And since then, Armandos has become a fine dining legend in Houston, known for its tasty dishes and Thursday night dance parties that draw Houstonians of all ages.

How did Armandos begin?

“I had a little part-time gig waiting tables at lunch. I was in between success. I saw this sign [at a building] two blocks from my house, next door to Taco Bell. Three weeks later, the [owner] answered the phone. He said, ‘Okay, you can lease this building for $400 a month and $100 deposit.’ I had $75 in my pocket and that was it. The next day I made $26. I went to the local bank down the street and got a brand new $100 bill. I met my new landlord and gave him this $100 bill and he gave me the key. I went inside what was going to be the restaurant, sat at the bar, and lit a cigarette and said, “Oh shit, I’m in the restaurant business.”

How did the Thursday night dance parties at Armandos start?

“I read an article in The New York Times about the very wealthy in Manhattan, [that] their Friday night was Thursday because Thursday they went out to all the restaurants. Friday morning they flew out – to the Hamptons, to Florida, Colorado, wherever that may be. Little by little, we started playing better music. We got a DJ. It has grown organically. Now, we’re very fortunate to be serving the third generation. Now, you see the third generation telling their parents, ‘What are you doing here? Go home!’”

What is one of your favorite memories at Armandos?

“I remember at the original Armandos, we had two dining [sections]. The smoking section and the non-smoking section. Billy Gibbons (of ZZ Top) was in the non-smoking section, and Lionel Richie was in the smoking section. I said, ‘I want a photo with both of them.’ I got them both. We got the photo."

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