Another Mexican restaurant chain files Chapter 11 bankruptcy
Mexican restaurants have been struggling for the last few years. This is partly due to consumers cutting back on their spending and partly due to oversaturation.
Americans love Mexican food, which has led to most markets having more Mexican restaurants than they can support. Unlike other restaurants that have had problems, there isn’t anything specific hurting Mexican chains.
Experts do not call this a trend. Instead, it’s part of something bigger.
“On The Border has been under pressure in recent years due to macroeconomic factors that have negatively impacted the company,” Jonathan Tibus, chief restructuring officer at OTB Holdings, told On The Border. Filing for Chapter 11 Bankruptcy.
Although there have been many bankruptcies, a survey by El Restaurante It just goes to show that the news isn’t all bad.
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El Restaurante research showed that 45% of Mexican restaurants will see sales increase in 2024.
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Almost a quarter (23%) said sales remained stable.
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The remaining 32% said sales decreased this year.
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In 2023, only 25 percent of survey respondents reported that sales were down from the previous year.
Despite these somewhat encouraging numbers, another Mexican chain, El Burro Loco, has filed for Chapter 11 bankruptcy protection.
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Borderline Mexican Grill & Cantina
Filed: March 2025 Details: 40 underperforming locations closed prior to/pre-filing; There are 60 units left operated by the company. Assets and liabilities are estimated to be between $10 million and $50 million. Source: PacerMonitor -
Tijuana Apartments
Filed: April 2024 Details: 11 restaurants closed, ownership changed during restructuring; Emerged from Episode 11 in early 2025 with plans for menu/format refresh.Source: PacerMonitor -
Rubio’s Coastal Grill
Filed date: June 5, 2024 Details: A fast-casual Mexican chain; Particularly after the struggles in California, an application for restructuring was made. 48 locations there were closed. Source: PacerMonitor -
Abuelo’s Mexican Restaurant
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Filed: September 2025
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Detail: Operated by Food Concepts International; It peaked at approximately 40 locations, dropping to 16 at the time of application. There was talk of rising costs, workforce challenges and declining sales. Liabilities/assets range from $10 million to $50 million.
Source: PacerMonitor
Although not a large chain, El Burro Loco had developed a large following in Central Florida. And since its locations were in highly touristic locations, the small chain had a great reputation.
The chain’s overall rating was four stars BarkWhere most reviews are positive.
“A solid place for Mexican food in Orlando! The food was great. I got the California burrito, it was full of flavor and large portions, and everything tasted fresh. Service was quick and friendly even though it was busy, and they made sure everything arrived hot. The ambience is cozy and perfect for a late-night bite, with clean tables, cheerful energy, and an overall chilled atmosphere. Prices are also reasonable for the portion size. Definitely a good meal.” It’s a place I’ll go back to when I want a burrito,” wrote Elite 25 reviewer Christian H. of Georgia on Yelp.
