Abuelo’s Mexican Restaurant, once celebrated as one of America’s top Mexican dining chains, is now fighting to survive. The Texas-based brand has filed for Chapter 11 bankruptcy and rapidly closed dozens of restaurants, shrinking from around 40 locations to 15 remaining nationwide (per its website).
From peak popularity to financial trouble
Founded in 1989 in Amarillo, Texas, Abuelo’s was once a go-to spot for Tex-Mex favorites like enchiladas, fajitas, and margaritas. At its peak, the chain was regularly recognized as one of the best Mexican restaurants in the country, earning a loyal following for its upscale décor and family-friendly atmosphere.
More specifically, they brag on their website as being the “#1 Mexican Restaurant in America since 2006 by consumers, as published in the nation’s most respected consumer rating magazine.”
But in recent years, the company has faced mounting challenges. Rising food and labor costs, shifting consumer habits, and ongoing staffing shortages have all hit mid-sized restaurant chains hard. Abuelo’s sales reportedly dropped by double digits between 2023 and 2024, forcing leadership to make tough decisions about underperforming stores.
Filing for bankruptcy
The company’s September Chapter 11 filing revealed debts of tens of millions of dollars, alongside declining sales and cash flow problems. The bankruptcy allows Abuelo’s to continue operating while it works to reorganize and potentially sell off some assets…