The Mexican restaurant sector’s financial points in 2025 have continued into 2026, as eating chains shut underperforming areas.
Regardless of sure Mexican chains going through financial points, the market measurement of the sector is anticipated to rise from $76.2 billion in 2025 to $80.2 billion in 2026, in line with Enterprise Analysis Insights.
Underforming Mexican eating places
On The Border Mexican Grill & Cantina, had about 120 areas in the beginning of 2025 and closed or vacated 40 non-performing shops on Feb. 24, 2025, due to issues with lease and/or monetary efficiency.
It later filed for Chapter 11 chapter on March 4, 2025, with plans to promote its belongings to its prepetition bridge mortgage lender.
Quick-food chain Taco Cabana, which had operated 146 eating places in New Mexico and Texas, closed 5 areas in September 2025.
Torchy’s Tacos tough selections
This 12 months, fashionable fast-casual Mexican restaurant chainTorchy’s Tacos introduced it would shut 4 of its areas in two states on Feb. 3, 2026, after evaluating the efficiency of its portfolio.
“After carefully evaluating performance across our portfolio and our long-term plans for the brand, we’ve made the difficult decision to close the locations,” the corporate stated in an announcement despatched to the media.
“The decision to close a restaurant is never an easy one. We’re incredibly grateful to the team who dedicated their time and energy to these locations,” the assertion stated.
Session Taco has closed six areas after working 9 all through the St. Louis space.
Shutterstock
Session Taco closes areas
And now, Mexican restaurant chain Session Taco has closed one other location with plans to open a brand new eating idea within the area.
The St. Louis-based informal Mexican chain, which at one time operated 9 areas in Missouri, closed its Session Taco retailer in St. Charles, Mo., on Feb. 13, with plans to open a brand new restaurant within the area, to be referred to as Sobremesa, the chain introduced in a Fb put up.
Sobremesa is a Spanish time period for the custom of hanging out after a meal to converse, calm down, and join with household and mates.
New restaurant deliberate
The brand new restaurant will proceed serving tacos and burritos, however will add soups, salads, fajitas, and different new entrees, in line with the put up.
The restaurant area can be renovated, including some cubicles, extra decrease seating choices, heat colours, new lighting, and paintings.
Session Taco closed the St. Charles restaurant about three weeks after closing its location in Kirkwood, Mo., on Jan. 25, 2026, as reported by St. Louis Journal.
The mexican restaurant chain closed its City and Nation location in St. Louis in November 2025 after opening in April 2024.
Troublesome to realize traction
“We signed the lease there in early 2023 when restaurants were seeing a post-Covid boom, but then the restaurant sales started declining across the country the second half of 2023, and by the time we opened it was very difficult to gain any traction at the location, despite mostly positive reviews,” Co-owner Adam Tilford instructed KSDK-TV after closing.
The chain in December 2025 closed its Central West Finish location in St. Louis and rebranded the restaurant as Lapez Mod Mex, in line with the Webster-Kirkwood Occasions.
Session Taco had some setbacks since opening as Mission Taco Joint in 2013, going through a trademark infringement lawsuit in 2023, and finishing a reputation change in September 2024.
The Mexican restaurant chain settled a lawsuit with Mission Meals mum or dad Gruma in November 2023, agreeing to alter its title from Mission Taco Joint, after the Mission tortillas maker sued the restaurant chain for trademark infringement.
Session Taco’s proprietor defined that the restaurant dropped the M and the I within the Mission Taco Joint title and added an S and an E to provide you with its new title.
“And yes, if you drop the M and the I, you have Session Taco. And yes, this was intentional,” proprietor Tilford instructed KTVI-TV.
The chain has both closed or rebranded six areas since increasing to as many as 9 areas by 2022.
Session Taco’s menu options 13 totally different taco selections, 5 burrito choices, 9 starter selections, 6 aspect dishes, and different gadgets, reminiscent of rooster fajita quesadilla, a fajita bowl, carne asada fries, and an LA Avenue Canine. The menu additionally provides 4 totally different child’s meals.
Remaining Session Taco areas
- 908 Lafayette Ave., St. Louis, Mo.
- 6235 Delmar Blvd., St. Louis, Mo.
- 409 E. 18th St., Kansas Metropolis, Mo.
Associated: McDonald’s rival closing 100s of restaurant areas
