Economic challenges Mexican restaurant chains faced in 2025, which led to the closing of dozens of locations and, in some cases, bankruptcy filings, are continuing this year.
Last year, Mexican dining chains, including On The Border Mexican Grill, Abuelo’s, and Taco Cabana, closed dozens of underperforming locations in restructurings.
Chains cited rising inflation for higher costs of labor and food products, which in turn forced restaurants to raise their prices. Many consumers reacted to higher prices by not dining out, which affected restaurant revenue…