Mexican eating places have been struggling over the previous couple of years. That is partially because of customers slicing again on their spending, and partly because of oversaturation.
People love Mexican meals, and that has led to most markets having extra Mexican eating places than they’ll help. There is not any one particular factor hurting Mexican chains versus different struggling eating places.
Consultants haven’t dubbed this a development. As a substitute, it is a part of one thing greater.
“On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the company,” Jonathan Tibus, restructuring officer for OTB Holdings, mentioned in On The Border’s Chapter 11 Chapter submitting.
And whereas there have been a number of bankruptcies, a survey by el Restaurante exhibits the information just isn’t all unhealthy.
- The el Restaurante survey confirmed that 45% of Mexican eating places have seen gross sales develop in 2024.
- Nearly 1 / 4 (23%) mentioned gross sales have been flat.
- The remaining 32% mentioned gross sales are down this 12 months.
- In 2023, solely 25 p.c of survey respondents reported that gross sales had been down from the earlier 12 months.
Regardless of these considerably encouraging numbers, one other Mexican chain, El Burro Loco, has filed for Chapter 11 chapter safety.
A variety of Mexican restaurant chains have filed for Chapter 11 chapter safety.
Shutterstock
Mexican chains which have lately filed Chapter 11 chapter
- On The Border Mexican Grill & Cantina
Filed: March 2025Particulars: Closed 40 underperforming areas earlier than/round submitting; 60 company-operated models remained. Belongings & liabilities had been estimated between $10 million and $50 million.Supply: PacerMonitor
- Tijuana Flats
Filed: April 2024Particulars: Closed 11 eating places throughout restructuring, modified possession; emerged from Chapter 11 in early 2025 with menu/format refresh plans.Supply: PacerMonitor
- Rubio’s Coastal Grill
Filed: June 5, 2024Particulars: A quick-casual Mexican chain; filed to restructure after struggles, particularly in California. Closed 48 areas there.Supply: PacerMonitor
- Abuelo’s Mexican Restaurant
- Filed: September 2025
- Particulars: Operated by Meals Ideas Worldwide; peak about 40 areas, all the way down to 16 or so on the time of submitting. Cited rising prices, labor challenges, falling gross sales. Liabilities/belongings between $10 million and $50 million.
Supply: PacerMonitor
El Burro Loco was totally different
Whereas it is not a big chain, El Burro Loco had construct a big following in Central Florida. And since its areas are in high-tourist areas, the small chain had an outsized repute.
The chain had an total ranking of 4 stars on Yelp, the place most opinions had been optimistic.
“Solid spot for Mexican food in Orlando! The food was great. I got the California burrito and it was loaded with flavor, big portions, and everything tasted fresh. The service was quick and friendly even though it was busy, and they made sure everything came out hot. The ambiance is casual and perfect for a late-night bite with clean tables, upbeat energy, and a chill vibe overall. Prices are fair for the portion size too. Definitely a place I’d come back to when I’m craving a good burrito,” wrote Christian H from Georgia, an Elite 25 reviewer on Yelp.
The chain didn’t have an internet site, however shared an outline of its enterprise on Yelp.
“Taste the vibrant and authentic Mexican Street Food delights and embark on a culinary adventure at El Burro Loco, where the vibrant flavors of Mexico come alive! Prepare to have your taste buds tantalized as our dedicated team of culinary artisans crafts each dish with passion and care,” it shared.
The chain, which began as a meals truck, has not shared what’s going to occur throughout its Chapter 11 chapter. It has, nonetheless, closed its “BVL” location, however mentioned that its flagship on Worldwide Drive (a serious vacationer vacation spot) would stay open.
BVL is Buenaventura Lakes, a group close to Orlando.
Key El Burro Loco Chapter 11 chapter particulars
- El Burro Loco Meals Corp filed for Chapter 11 chapter in Florida Center District Court docket on October 10, 2025.
- Case #: 6:25-bk-06539
- It’s a Voluntary Chapter 11 submitting, beneath Subchapter V.
- Plan deadline for the Chapter 11 Subchapter V plan is January 8, 2026.
- Debtor’s title: El Burro Loco Meals Corp, additionally does enterprise as El Burro Loco, El Burro Loco Twisted Mexican Delicacies, El Burro Loco I-Drive.
Supply:Inforuptcy
The submitting signifies that El Burro Loco Meals Corp is searching for to reorganize its money owed and operations beneath the safety of the chapter court docket, aiming to return to profitability, in response to Inforuptcy.
No debt or belongings data has been made publicly obtainable but.
Associated: Controversial burger chain closes all areas (blame ICE)
