The past few years have been challenging for Mexican restaurants, primarily due to consumers curtailing their spending and a market oversaturation.
Mexican cuisine is beloved across the United States, leading to a higher number of Mexican restaurants than many markets can support. There isn’t a single factor causing trouble for Mexican chains that isn’t also affecting other struggling restaurant sectors.
Experts have refrained from labeling this situation as a trend, viewing it instead as part of a broader issue.
“On The Border has encountered considerable challenges in recent years due to macroeconomic factors that have adversely impacted the company,” stated Jonathan Tibus, restructuring officer for OTB Holdings, in the company’s Chapter 11 bankruptcy filing.
Despite multiple bankruptcies, a recent study by el Restaurante reveals some positive news as well.
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According to the el Restaurante survey, 45% of Mexican restaurants reported increased sales in 2024.
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Approximately one-fourth (23%) indicated their sales remained steady.
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The remaining 32% experienced a decline in sales this year.
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Conversely, in 2023, only 25% of those surveyed indicated that their sales had declined year-over-year.
In light of these somewhat promising statistics, another chain, El Burro Loco, has filed for Chapter 11 bankruptcy protection.
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On The Border Mexican Grill & Cantina
Filed: March 2025 Details: Closed 40 underperforming locations preceding/around the filing; retained 60 company-operated units. Estimated assets & liabilities between $10 million and $50 million.Source: PacerMonitor -
Tijuana Flats
Filed: April 2024 Details: Shut down 11 locations during restructuring, underwent ownership change; emerged from Chapter 11 in early 2025 with plans for menu and format refresh.Source: PacerMonitor -
Rubio’s Coastal Grill
Filed: June 5, 2024 Details: A fast-casual Mexican chain; filed for restructuring amid challenges, particularly in California. Closed 48 locations there.Source: PacerMonitor -
Abuelo’s Mexican Restaurant
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Filed: September 2025
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Details: Operated by Food Concepts International; peaked at around 40 locations, reduced to about 16 at the filing time. Cited rising costs, labor issues, and declining sales. Liabilities/assets between $10 million and $50 million.
Source: PacerMonitor
Though not a large chain, El Burro Loco garnered a loyal following in Central Florida, especially with its tourist-heavy locations enhancing its reputation.
The chain boasted an overall rating of four stars on Yelp, with many positive reviews.
“A fantastic choice for Mexican food in Orlando! The meal was excellent. I had the California burrito, which was bursting with flavor, generous portions, and everything tasted fresh. The service was prompt and friendly, even during peak times, ensuring everything was served hot. The ambiance is laid-back and ideal for a late-night snack with clean tables, a lively atmosphere, and a relaxed vibe overall. Prices are reasonable for the portion sizes, too. Without a doubt, a place I’d revisit when I’m in the mood for a delicious burrito,” shared Christian H from Georgia, an Elite 25 reviewer on Yelp.
