One other restaurant has closed its doorways for good. Whereas restaurant closures have surged in recent times, pushed by financial uncertainty, rising prices, and slowing client spending, this case entails extra than simply the everyday monetary troubles.
Regardless of its prime location alongside San Antonio’s well-known River Stroll and opening lower than seven months in the past, Luz Roja Tex-Mex, positioned at 419 N St. Mary’s Avenue, has completely closed.
In line with its still-active web site, Luz Roja described itself as a Mexican bar and restaurant “where San Antonio’s Tex-Mex heritage meets crafted flavors and modern flair.” The restaurant emphasised conventional cooking strategies, together with the artwork of tallow cooking and sustainable sourcing, promising ” a dining experience like no other.”
Luz Roja Tex-Mex closes amid an FBI investigation.
Shutterstock
Luz Roja’s proprietor below FBI investigation
Luz Roja’s closure appears tied to a deeper problem. The restaurant’s proprietor, Devin Elder, is reportedly below FBI investigation associated to alleged cash laundering and wire fraud.
Elder, who opened Luz Roja in March 2025 contained in the Travis Constructing overlooking the River Stroll, can also be the previous principal of DJE Texas Administration Group, the corporate on the heart of the federal probe.
He at present faces a number of investor lawsuits filed within the Bexar County District Court docket.
Court docket data courting again to April present that Luz Roja LLC owes greater than $69,000 in unpaid payments to native contractor Hermes Group.
Associated: Iconic Mexican restaurant chain makes comeback after 20-year hiatus
A former worker advised the San Antonio Enterprise Journal that Luz Roja Tex-Mex formally closed on October 10, giving employees solely 5 days’ discover.
“I have not seen or heard from Devin since April,” mentioned the previous worker to the publication. “They were putting $0 into the restaurant… We were just getting into our busy season when he decided to pull the plug. Most likely due to the debt to the vendors and the bank that took over the Travis building.”
This summer time, Boston-based business actual property agency UC Funds assumed possession of the Travis Constructing in a foreclosures sale for $16.7 million after DJE defaulted on its $18.25 million mortgage.
The restaurant trade struggles
Because the Covid pandemic, many chains have been hit by rising meals, labor, and lease prices, together with lowered client spending and site visitors, slimming their possibilities of survival.
In line with the U.S. Bureau of Labor Statistics, round 17% of latest eating places shut inside their first yr.
Even main chains have not been spared. in 2025 alone, Pink Lobster, TGI Fridays, Starbucks (SBUX), and Denny’s (DENN) have all confronted mass closures and layoffs, shrinking their nationwide footprints.
“Economic fragility is expected to continue to weigh heavily on consumer behavior, with uncertainty about the potential impact of tariffs on costs, weak job growth trends and the specter of stagflation further complicating operators’ efforts at forward planning,” famous Financial institution of America in its State of the Restaurant Trade 2025 report.
Restaurant Knowledge notes that new impartial eating places have opened at the next price than chains for the reason that pandemic. Nonetheless, additionally they make up the vast majority of closures, with 2,712 closures within the first six months of 2024 being chain eating places and 13,265 being impartial institutions.
Associated: 89-year-old legendary restaurant chain closing all areas in key space
