Don Carlos Restaurant was founded on January 18, 1986. Gerry and Christos Stathatos purchased the assets of a struggling restaurant at 416 N. 76th street in Houston, Texas. They liked the Harrisburg/Wayside neighborhood very much , a mixture of hard working people and small business. This they thought would be a great area for their new business. The restaurant , renamed Don Carlos Mexican Restaurant and Cantina opened with a new look, and an enhanced menu.
Their business was so successful, that in 1991, they added 1,000 square feet of dining area, increasing seating capacity to 170, while adding 1,500 square feet for a larger kitchen. They then added parking across the street from the restaurant to accommodate the additional business.