After a decade of slinging tequila and tacos on East Colfax, Machete Tequila + Tacos is closing its Colfax outpost this weekend, owner John Wallrath has confirmed. The shop will pour its last margaritas on Saturday, as its lease expires and the corridor around it is reshaped by heavy construction. For regulars, the shutdown is another gut punch in a stretch of Colfax that seems to reinvent itself every few years.
As reported by BusinessDen, Wallrath and partner Dan Ohlson opened the Colfax location in 2016 at 3570 E. Colfax Ave. He told the outlet that "there's just no upside right now" after talks with the landlord stalled and construction crews rolled onto the block.
How the Colfax BRT Changed the Street
The City of Denver's East Colfax Bus Rapid Transit project kicked off construction in October 2024 and is working east in multi-block segments, with work scheduled to continue into 2026 and beyond, according to the City of Denver. The project brings center-running bus lanes, new station platforms, and streetscape upgrades that have shifted parking and access up and down the corridor.
Wallrath told BusinessDen the Colfax restaurant saw about 10% annual growth in its early years. After sales spikes in 2022 and 2023, he said business has since dropped roughly 70% in recent years. He tried to negotiate a better lease and pushed for clearer construction timelines, but ultimately decided not to renew.
What Stays Open
Machete's footprint in Denver is not disappearing entirely. The owners will keep their Cherry Creek and Union Station locations open, as reflected on the company website. Machete Tequila + Tacos lists hours and menu details for those remaining outposts.
Relief for Impacted Businesses
The City of Denver operates a Business Impact Opportunity (BIO) Fund that provides one-time grants of $7,500 or $15,000 to small businesses affected by major city-funded construction projects such as the Colfax BRT. Materials from the City of Denver outline eligibility rules and how storefronts can apply.
The closure of Machete on Colfax is another reminder that large-scale infrastructure work can knock long-standing neighborhood businesses off balance even as it promises long-term benefits. For Machete's owners, the focus now is on supporting staff and keeping the remaining locations humming while the Colfax space goes dark.
