Casual Mexican restaurant chain shuts down more locations
Yahoo Finance·2025-12-05 03:33

Industry Overview - Mexican restaurant chains are facing significant economic challenges due to rising labor and food costs driven by inflation, higher interest rates on debt, and consumer reluctance to dine out during uncertain times [1] - Operators are cutting costs to mitigate financial losses, which includes closing underperforming restaurant locations [1] Company Actions - Taco Cabana, a Mexican fast-food chain, closed five locations in September 2025, reducing its footprint from 146 restaurants in New Mexico and Texas [2] - Quesadilla Gorilla announced the closure of two locations in November and December 2025 due to financial distress [2] - Matteo's Authentic Mexican Food closed all four of its locations in Texas and New Mexico as of November 10, 2025 [4] Specific Closures - Session Taco, which previously operated nine locations, has closed its Town and Country location in St. Louis less than two years after opening [5] - Session Taco has rebranded and currently operates five locations in Missouri, with some offering modern arcade games and event space rentals [6] - The chain settled a trademark lawsuit in November 2023, changing its name from Mission Taco Joint due to a lawsuit from Mission Foods [7]