Mexican restaurant closes unexpectedly amid alarming legal troubles

Company Overview - Luz Roja Tex-Mex, a restaurant located in San Antonio, has permanently closed just seven months after its opening, despite its prime location along the River Walk [1] - The restaurant was described as a Mexican bar and restaurant that combined Tex-Mex heritage with modern culinary techniques [2] Owner and Legal Issues - The owner, Devin Elder, is under FBI investigation for alleged money laundering and wire fraud, which appears to be linked to the restaurant's closure [2] - Elder has faced multiple investor lawsuits in Bexar County District Court, and Luz Roja LLC reportedly owes over $69,000 in unpaid bills to a local contractor [3] Closure Details - The official closure date of Luz Roja Tex-Mex was October 10, with staff receiving only five days' notice [4] - A former employee indicated that the restaurant was not receiving financial support and was facing significant debt, which likely contributed to the decision to close [5] Industry Context - The restaurant industry has been struggling post-COVID, with rising costs in food, labor, and rent, alongside reduced consumer spending impacting survival rates [6] - Approximately 17% of new restaurants close within their first year, highlighting the challenges faced by new entrants in the market [6] - Major chains have also experienced closures and layoffs in 2025, indicating broader industry challenges [7]