Phoenix Saloon
New Braunfels, Comal County, Texas
Marker Inscription
Built in 1871, the original Phoenix Saloon building was a two-story brick, rock, and stucco building built by John Sippel located on the corner of west San Antonio Street and Castell Avenue. A saloon operated on the first floor under various names before it finally became the Phoenix Saloon in 1895. The building not only housed a popular saloon but also a back room café where proprietor William Gebhardt served a stew spiced with tampico dust, his own special concoction of herbs and dried chili peppers. His tampico dust is often regarded as the first chili powder. In 1896 Gebhardt moved to San Antonio to manufacture his eagle brand chili powder. Another attraction of the saloon was the beer garden facing San Antonio Ctreet between the saloon and the old Comal County Courthouse. Unusual for the times, ladies were welcome here. John Sippel built a small pool with a fountain that contained fish and alligators. Some legends about the saloon claim it held badger fights and featured a parrot inside the front door that was taught to say, “Have you paid your bill?” in German. The lively nature of the phoenix saloon was temporarily closed down when prohibition was instituted in 1918, even though Comal County voted 100% against prohibition. In 1922 Albert Ludwig owned the building and expanded it by adding the third floor for the local masonic lodge. In 1927 Jacob Schmidt bought the building and changed the name displayed near the top of the front façade from Ludwig to Schmidt. The Schmidts operated a clothing store in the building from 1935-1995. In 2010 the first floor was once again operating as the phoenix saloon.
Erected by Texas Historical Commission
The Story
Built in 1871 and operating under various names before becoming the Phoenix Saloon in 1895, this New Braunfels landmark paired a lively barroom with a back-room café. There proprietor William Gebhardt served a stew seasoned with his own blend of herbs and dried chilies — 'tampico dust,' often credited as the first chili powder — before moving to San Antonio in 1896 to manufacture his Eagle Brand. The saloon, unusually welcoming to ladies, closed under Prohibition in 1918 and reopened as a saloon a century later.
Why it matters
It is the birthplace of commercial chili powder, a small Texas invention that reshaped American and Tex-Mex cooking.
The story behind this marker
AI contextThe era
New Braunfels was born of a bold German experiment. In the 1840s, an association of German noblemen organized the emigration of thousands of their countrymen to the Texas hill country, and the town that took root along the Comal and Guadalupe rivers kept its German character for generations. By 1871, when the building on the corner of West San Antonio Street and Castell Avenue first went up, the young settlement had matured into a working town of brewers, shopkeepers, and craftsmen who brought Old World habits of beer, sociability, and public gathering with them.
The decades that followed — the long stretch after the Civil War that historians call the Gilded Age — were boom years for American saloons. In a German-Texan town, the saloon was not a den of vice but a civic living room: a place to read the newspaper, argue politics in your mother tongue, and drink a beer brewed the way it was back home. The Phoenix, which took that name in 1895 after years operating under other signs, belonged squarely to that world.
This was also an era when the flavors of the American table were still being invented. The cooking of south-central Texas was a meeting ground of German, Mexican, and Anglo traditions, and an enterprising cook working out of a back room could stumble onto something that would outlast his lifetime.
The building's very name captured the spirit of the place — the phoenix, rising and rising again, a fitting emblem for a business that would survive Prohibition, changes of ownership, and more than a century of Texas history.
People & events
The two-story building of brick, rock, and stucco was raised in 1871 by John Sippel, and a saloon poured drinks on its ground floor under a succession of names before it settled on 'Phoenix' in 1895. But the figure who gives this corner its lasting fame worked in the back.
There, proprietor William Gebhardt ran a small café and served a stew seasoned with what he called 'tampico dust' — his own blend of dried chili peppers and herbs, ground fine. It is widely credited as the first chili powder, a way to bottle the flavor of a fresh chili so a cook could reach for it any day of the year. In 1896 Gebhardt carried that idea to San Antonio, where he began manufacturing the Eagle Brand chili powder that would carry his name into kitchens far beyond Texas.
The saloon around him was a genuine character. There was a beer garden facing the street between the bar and the old Comal County Courthouse, and — unusual for the time — ladies were welcome in it. Sippel built a small fountain pool stocked with fish and, so the story goes, alligators. Local legend adds badger fights and a parrot by the front door trained to demand, in German, whether you had paid your bill.
The building's later life reads like a ledger of the town itself: closed under Prohibition in 1918 (though Comal County had voted against it outright), expanded with a third floor for the Masonic lodge in 1922, renamed when Jacob Schmidt bought it in 1927, and home to the Schmidt family's clothing store from 1935 to 1995.
Its place in the American story
The humble jar of chili powder is one of those small inventions that quietly reshaped how a whole country eats. Before a reliable, shelf-stable chili seasoning existed, the deep flavor of dried peppers was a laborious thing to coax out of a kitchen. Packaging it turned a regional specialty into something any home cook, anywhere, could keep in the cupboard — and it helped carry chili con carne, enchiladas, and the broader world of Tex-Mex cooking out of Texas and across America.
That this began in a saloon back room is fitting. So much of American food culture was worked out not in fine restaurants but in immigrant kitchens, roadside cafés, and neighborhood taverns, where cooks improvised with what grew nearby and what their customers craved. The Phoenix sits at the crossroads of German-Texan and Mexican-Texan foodways, and the seasoning born there is a small monument to that mingling.
The building's survival is its own kind of significance. A single structure that has been saloon, café, lodge hall, and clothing store — and saloon again — is a compressed history of the American Main Street, and of how the places at the center of a town's daily life are reinvented rather than abandoned.
If you visit
Stand on the corner of West San Antonio Street and Castell Avenue and look up. The name near the top of the façade tells one chapter of the story; the brick, rock, and stucco walls beneath it have watched New Braunfels grow from a German colony into a modern Texas town.
Let yourself imagine the beer garden that once faced the street, the fountain with its fish and its legendary alligators, and the parrot supposedly stationed at the door. Then remember that behind an ordinary back door, a cook was grinding peppers into something that would end up in kitchens across the country. It is a good reminder that big culinary history often hides in small, unglamorous rooms.
New Braunfels rewards a slow wander. This corner fits naturally into a walk through the town's historic center, and it pairs especially well with a road trip built around Texas food — the birthplace of commercial chili powder is a fine place to start, and a fine excuse to seek out a bowl of chili afterward.
Written by AI to add context, grounded in the marker’s inscription and the historical record. The inscription above is the original, unaltered text.
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Related people
- · William Gebhardt
- · John Sippel
Themes & tags
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