James Beard award-winning chef Mashama Bailey closing her two Austin restaurants

The Thompson hotel in downtown Austin brought in some heavy hitters to establish its food and beverage operations in the Austin market when it opened in 2022 at 506 San Jacinto Blvd. But two years later, those names are vanishing.

Savannah chef Mashama Bailey, who has won James Beard awards for Best Chef Southeast and Best Chef in the country, is closing her two restaurants (Diner Bar and Grey Market) at the hotel on July 15, Bailey and her partner, John Morisano, confirmed to the American-Statesman via email. The news was first reported by Eater Austin.

2022 Interview:Chef Mashama Bailey brings famous Savannah touch to Austin’s new Diner Bar and Grey Market

The news comes after just over two years of operation for the concepts and on the heels of the shutter of Wax Myrtle's the poolside bar on the fourth floor that was run by the esteemed Land and Sea Dept. out of Chicago.

"The Thompson Hotel’s ownership is continuing to internalize all F&B operations, a process they began in January of this year," Bailey and Morisano wrote. "Our Grey Spaces team has loved our time in Austin, the great folks with whom we have worked, and our collaboration with Thompson."

Need a break? Play the USA TODAY Daily Crossword Puzzle.

Well-reviewed Diner Bar struggled to find a local following

Big name outside chefs have not had great success opening restaurants in Austin, and Bailey's fine dining restaurant that served the Southern port food inspired by her Georgia roots never seemed to gain a strong local following. I mentioned my concern that Bailey may have trouble drawing locals to her downtown spaces when I reviewed Diner Bar very positively in 2022.

I ended that review with the following words: "It would be a shame if the restaurant is siloed in the “hotel restaurant” or “celebrity restaurant” categories. The Austin dining scene, like the city itself, will continue to attract outsiders, so luring and keeping the best of them seems like a smart way to cultivate a richer, more diverse future."

2022 Review:A newcomer any Austinite should welcome: Savannah chef Mashama Bailey's Diner Bar

The restaurant attempted a minor rebrand earlier this year, as it pivoted to emphasize its oyster and sustainable seafood programs, with a new name: Diner Bar: A Seafood Bistro & Lounge.

When asked about the reasoning behind the closure, the partners, who are celebrating the 10th anniversary of the Grey in Savannah and opening a restaurant in Paris this year, only pointed to the hotel's decision to take food-and-beverage operations in house.

Asked about Bailey's departure and reasons behind the move to take things in house, Nate Hardesty, managing director of Thompson Austin, wrote the following to the American-Statesman:

“We are thankful for our collaboration with chef Mashama Bailey and The Grey Group for our restaurant and bar concepts Diner Bar and The Grey Market,” said Nate Hardesty, managing director of Thompson Austin. “At this time, we can confirm ownership and The Grey Group have decided to part ways, and the restaurants will close on July 15. We are grateful for the Austin community and guests who have supported these culinary concepts, and we look forward to sharing more details on our new restaurant and bar concepts soon.”