Mexican restaurants have struggled over the past couple of years. This is partly because consumers are cutting back on their spending, and partly because of over-saturation.
Americans love Mexican food, and this has resulted in most markets having more Mexican restaurants than they can support. There’s nothing specific that hurts Mexican chains compared to other struggling restaurants.
Experts did not call this trend. Instead, it is part of something bigger.
“In recent years, On The Border has been impacted by macroeconomic factors that have negatively impacted the company,” Jonathan Tibus, restructuring officer at OTB Holdings, said at On The Border. Chapter 11 Bankruptcy.
Although there were many bankruptcies, an opinion poll was conducted The restaurant It shows that the news is not all bad.
El Restaurante’s survey showed that 45% of Mexican restaurants saw sales expand in 2024.
Nearly a quarter (23%) said sales were flat.
The remaining 32% said sales declined this year.
In 2023, only 25 percent of survey respondents reported that sales were down from the previous year.
Despite these somewhat encouraging numbers, another Mexican chain, El Burro Loco, has filed for Chapter 11 bankruptcy protection.
On the Mexican border grill and cantina
Submitted: March 2025 Details: 40 underperforming sites closed before/around submission; 60 units remain managed by the company. Assets and liabilities were estimated at between $10 million and $50 million. Source: PacerMonitorTijuana apartments
Filed: April 2024 Details: 11 restaurants closed during restructuring, ownership changes; It emerged from Chapter 11 in early 2025 with plans to update the menu/format. Source: PacerMonitorRubio’s Coastal Grill
Submitted: June 5, 2024 Details: Fast action Mexican series; It moved forward with restructuring after struggles, especially in California. 48 locations there have closed. Source: PacerMonitorAbuelo Mexican Restaurant
foot: September 2025
details: Managed by Food Concepts International; The peak is around 40 locations, down to 16 or so at the time of application. He cited rising costs, labor challenges and declining sales. Liabilities/assets range from $10 million to $50 million.
source: Speed monitor
Although not a large chain, El Burro Loco has gained a large following in Central Florida. Because its locations are located in locations with high tourist density, the small chain has gained a great reputation.
The series received an overall rating of four stars howlingWhere most reviews were positive.
“A solid place for Mexican food in Orlando! The food was amazing. I got the California burrito and it was full of flavor, large portions and everything was fresh. Service was fast and friendly even though it was crowded, and they made sure everything was hot. The atmosphere is casual and perfect for a late night snack with clean tables, upbeat energy and an overall cool vibe. Prices are fair for the portion size as well. Definitely a place I will be back “I crave a good burrito,” wrote Christian H. of Georgia, an Elite 25 reviewer on Yelp.
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