Another Mexican restaurant chain files Chapter 11 bankruptcy

Core Insights - The Mexican restaurant industry is facing challenges due to consumer spending cuts and market oversaturation, leading to multiple bankruptcies among chains [1][2] Industry Overview - A significant number of Mexican restaurant chains have filed for Chapter 11 bankruptcy protection, including On The Border, Tijuana Flats, Rubio's Coastal Grill, and Abuelo's Mexican Restaurant [4][6] - The el Restaurante survey indicates that 45% of Mexican restaurants experienced sales growth in 2024, while 23% reported flat sales and 32% reported a decline [5] Company-Specific Developments - On The Border closed 40 underperforming locations prior to its bankruptcy filing, with assets and liabilities estimated between $10 million and $50 million [4] - Tijuana Flats emerged from Chapter 11 in early 2025 after closing 11 restaurants and changing ownership, with plans for a menu and format refresh [4] - Rubio's Coastal Grill filed for restructuring after closing 48 locations in California due to struggles [4] - El Burro Loco, despite being a smaller chain, had a strong reputation in Central Florida but still filed for bankruptcy [3][7] Consumer Sentiment - Positive consumer reviews highlight the quality of food and service at certain Mexican restaurants, indicating potential for recovery in specific locations [8]