Real Estate Photographer in San Marcos, TX

A popular, locally owned kolache bakery is continuing its Central Texas climb. this time setting its sights on one of the busiest stretches between Austin and San Antonio.

Brothers Chase and Seth Katz, founders of Dos Gatos Kolache Bakery, are planning their second San Marcos outpost, this time along the I-35 corridor, placing the homegrown brand in the middle of a high-traffic commercial hub.

The 1,694-square-foot space will take over a former convenience store, undergoing a $350,000 renovation, with construction expected to begin in July and wrap by November, according to Texas Department of Licensing and Regulation (TDLR) filings. All TDLR filings are subject to change without notice.

The location puts Dos Gatos alongside a cluster of high-volume restaurants like Pluckers Wing Bar, Texas Roadhouse, Olive Garden and Whataburger, all positioned to capture the steady stream of commuters, travelers and residents moving between Austin and San Antonio, or navigating the Texas college town of San Marcos.

"I think that the location that we chose for Dos Gatos there is kind of an underserved area a little bit," Chase Katz said to MySA. "There's some redevelopment that the city wants to happen along that I-35 strip, where some businesses have closed. We're going to be the first over there. Hopefully we're providing some breakfast, some kolaches and coffee for the neighborhood that needs to be there."

For the Katz brothers, that environment represents both an opportunity and a shift. Chase Katz confirmed to MySA that the new location will feature a drive-thru, walk-in ordering and indoor seating.

The menu will remain consistent with other locations, blending Czech-style sweet kolaches with Texas-style savory options, but the setting introduces a more flexible customer experience, from quick coffee runs to longer, sit-down visits.

The expansion builds on a strategy already taking shape in New Braunfels, where Dos Gatos opened along Hunter Road in December 2025. That location, which leans on drive-thru and walk-up traffic, has served as a learning curve for the team outside their original San Marcos footprint.

That growth traces back to 2009, when Dos Gatos first opened near the Texas State University. As first reported in The University Star in 2021, the original LBJ Drive shop helped build a loyal following among students. Five years later, the footprint has expanded, with the Wonder World location remaining in San Marcos, joined by the New Braunfels shop and the upcoming I-35 store.

Chase Katz, a Texas State alum, noted that opening in a new market like New Braunfels in December has come with its own challenges. The company tested a model that combines drive-thru and walk-up service, rather than the traditional walk-in setup. He acknowledged to MySA that there is still work to be done to refine and grow the concept. Even so, early response in New Braunfels has been positive, with strong turnout signaling demand for the brand beyond its hometown base.

Next door to that bakery, construction is ongoing on Hunter Road Country Club, a bar-and-grill concept that will expand the brothers’ presence in the growing New Braunfels market. Chase said the project is now targeting a late spring opening and will center on a patio-driven atmosphere with food and drinks, though details remain limited.

Alongside Dos Gatos, the Katz brothers have expanded into a broader hospitality portfolio that includes Zelick’s Icehouse and other concepts like San Marcos’ Pie Society, steadily building a presence in San Marcos With the upcoming I-35 location, that growing portfolio enters a new phase in one of the most high-traffic audience yet.

Find it: 1004 I-35 N. Frontage Road, San Marcos, TX 78666