On The Border Mexican Grill & Cantina, a prominent Tex-Mex restaurant chain, filed for Chapter 11 bankruptcy protection on March 5, 2025. As part of its restructuring efforts, the company closed 77 underperforming locations across 24 U.S. states.
The closures were attributed to factors such as inflation, rising interest costs, and decreased customer traffic.
This development is part of a broader trend affecting Mexican and Tex-Mex restaurant chains. For instance, Del Taco abruptly closed all but one of its Colorado locations in late February 2025 due to financial challenges faced by a franchisee.
Similarly, Rubio’s Coastal Grill, known for its fish tacos, has experienced store closures and filed for bankruptcy in recent years, leading to a reduction in its number of locations.
These closures highlight the ongoing challenges within the Mexican and Tex-Mex restaurant industry, including financial difficulties and changing consumer preferences.