El Paso/ Food & Drinks

69-Year-Old Las Cruces Diner Wins Beer-and-Wine Nod to Survive Under New Owner

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Published on August 19, 2026
69-Year-Old Las Cruces Diner Wins Beer-and-Wine Nod to Survive Under New OwnerSource: Google Street View

The Las Cruces City Council voted 6-0 to approve a beer-and-wine liquor license for La Nueva Casita Cafe, clearing a key local hurdle for the 69-year-old Mesquite Street restaurant under its new owner, civil rights attorney Israel Chávez. City staff told the council that no reviewing agencies had identified problems with the request, and Mayor Eric Enriquez was absent from the vote on Resolution 27-031.

Chávez, who owns the restaurant and also runs a law practice just blocks away on Mesquite Street, said the goal behind adding alcohol service is straightforward: keeping the historic business running. As reported by Organ Mountain News, Chávez said the state licensing process was already underway before the council hearing, which he described as the likely final local step before state review. “We've maintained something that has been there for a very long time,” Chávez said, according to the same account.

La Nueva Casita Cafe opened in 1957 as La Casita Cafe and was renamed in 1990, according to the newspaper's report. It describes itself as the oldest restaurant in Las Cruces still operating in the same location, having served the community from 195 N. Mesquite St. for nearly seven decades. The diner sits at the corner of Mesquite Street and Organ Avenue, directly across from Klein Park, and employs about 18 people, some of whom have worked there for five to 10 years, per the same outlet's reporting.

What the New License Actually Allows

The approval covers a Restaurant A license, permitting beer and wine for on-premise consumption and patio service. Under New Mexico's administrative rules, that license type restricts sales to beer and wine only, requires that at least 60% of gross receipts come from food, and bars alcohol service after food service ends or past 11 p.m., according to the N.M. Administrative Code. The license is also non-transferable between owners or locations, meaning Chávez had to file a fresh application rather than inherit any prior permit, per the N.M. Alcoholic Beverage Control Division.

That license category exists because of a 2021 legislative overhaul. New Mexico created the Restaurant A and Restaurant B classifications under House Bill 255 specifically to reform the state's costly quota system and make beer-and-wine permits more attainable for food-focused restaurants, according to the New Mexico Restaurant Association. The New Mexico Alcoholic Beverage Control Division gave preliminary approval to La Nueva Casita's application on July 6, and the City of Las Cruces will now notify the state of its own vote so the remaining review process can continue.

A Diner Rooted in Mesquite Street History

Chávez's practice, the Law Offices of Israel Chávez, sits at 646 N. Mesquite St., placing him within the same historic corridor as the restaurant he now owns. According to Justia, his professional footprint in the neighborhood predates his ownership of the cafe. In a December 2025 commentary, Chávez publicly pushed for greater municipal funding and remediation in the Mesquite District, arguing the neighborhood's Hispanic and Indigenous communities have faced long-standing neglect, according to Organ Mountain News.

The Mesquite Historic District marks the original 1849 townsite of Las Cruces, laid out in 84 blocks along El Camino Real de Tierra Adentro before 43 of those blocks were demolished during a 1968 urban renewal project, leaving 22 original blocks intact, per the National Park Service. Klein Park, facing the restaurant, holds its own place in that history: in 1849, 112 original settler families camped under a large cottonwood tree there to draw lots establishing land ownership for the newly surveyed townsite, according to the City of Las Cruces. The park was formally deeded to the city in June 1939, named for four-term mayor Samuel Klein, and continues to host traditional gatherings like the Diez y Seis de Septiembre fiesta.

Council Members Weigh In

Mayor Pro Tem John Muñoz welcomed the move as continued investment in one of Las Cruces' oldest neighborhoods. Muñoz also noted a personal favorite on the menu, saying the restaurant's Estrella tacos are his pick. La Nueva Casita is known locally for southern New Mexico staples including red and green Hatch chile enchiladas and tostadas compuestas, served in a space that still carries interior touches from its 1950s origins, according to Travelmag.

The council's action fits a broader pattern of Las Cruces officials backing commercial beverage expansions in recent months. Earlier in August, the city cleared municipal hurdles for Santa Fe Brewing Co. to open a taproom with patio service near New Mexico State University, according to Organ Mountain News. For Chávez, though, the stakes at La Nueva Casita are framed less around growth than continuity — keeping a nearly seven-decade-old kitchen and the neighborhood around it intact.