Over the next few years, Esther's Follies grew in popularity and the group began presenting live music on a tiny stage under the shadows of the former lumberyard shed and extended its schedule to 3–4 days a week.
The comedy club owners sold the lease to Charlie Tesar who continued operations there as a seasonal live music venue.
In 1981, during the demolition of the Armadillo World Headquarters, the steel beams of the old armory were purchased at auction and brought over to the Liberty Lunch site and the first of several roof structures was built.
In July 1999, the venue was forced to close to make way for a redevelopment project spearheaded by then-mayor Kirk Watson, which saw the construction of two office buildings for the Computer Sciences Corporation and the present-day Austin City Hall.
[1] Its last shows included sets by the Toadies, Bob Mould, Beto y Los Fairlanes and two nights of Sonic Youth.