Texas-based restaurant chain, Fernando’s, is officially closing both of its locations. Twenty years of “upscale Tex-Mex” business will meet its end when the chain’s two North Texas locations, in Dallas and Richardson, close their doors on May 18, 2025. While plenty of restaurant chains are struggling and even facing bankruptcy due to financial issues these days, Fernando’s is actually closing due to leasing issues. Fernando’s Managing Partner, Anne Cowden, said in a farewell Instagram post that after “five months of lease negotiations at our Dallas location, we were unable to reach a lease agreement with the landlord. With the Richardson lease also expiring soon, this is the appropriate time to close both restaurants.”
It is doubtful that Fernando’s restaurant employees, or its patrons, would agree with Cowden’s use of the word “appropriate.” In fact, some restaurant-local Reddit users have already called out Cowden for deciding to close the restaurants, along with the restaurant’s Dallas landlords for choosing to let a space go vacant short term in order to potentially cash in on high property values in the long-term. While such public commentary on the closure is based on emotion and speculation, it does shine a light on two dark corners of restaurant reality: restaurant closures due to owner exhaustion, and restaurant closures due to lease issues.
The Impact Of Burnout On Restaurants
Large restaurant chains commonly close due to high debt and low foot traffic (like once-popular breastaurant, Hooters ), private equity inspiring bad business decisions (like seafood fan-favorite Red Lobster ), and over-expansion creating more creditors than profits (see: Jack in the Box’s recent decision to close locations ). With that said, there might actually be some expectation from customers that outposts of these larger chains will inevitably close, either due to poorly-planned location choices or locally known quality control issues. However, the shuttering of a small restaurant chain like Fernando’s can be surprising — and heartbreaking.
Small neighborhood chains can become generational mainstays, and the sudden closure of go-to may not compute for local customers who see a full restaurant every night and an empty storefront the next. Plus, vaguely stated closure announcements may not fully satisfy loyal customers who count on neighborhood favorites. However, no longer being able to (or wanting to) satisfy even the most loyal of customers can be reason enough to close a seemingly successful restaurant’s doors…