Summary
Several Mexican fast-food chains in the U.S. are closing locations or filing for bankruptcy due to rising costs and changing consumer habits. These changes are happening as the restaurant industry struggles to cope with higher costs and increased competition. Some chains are restructuring or being sold to new owners to survive.
Key Facts
- Del Taco closed 18 locations in Colorado after a franchisee filed for bankruptcy.
- Taco Cabana is shutting down five locations in San Antonio but still has around 136 stores.
- Quesadilla Gorilla is closing two locations in California but plans to open a new one in 2026.
- On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy and closed 77 locations but was bought by Pappas Restaurants.
- Abuelo’s filed for Chapter 11 bankruptcy and closed 24 locations, leaving 16 still open.
- Rising labor and supply costs, along with changes in dining preferences since the COVID-19 pandemic, contribute to these closures.
