Mexican restaurants face challenges such as over -saturation and reduced consumer spending, leading to various bankruptcies in Chapter 11. Not everything is gloomy as a survey shows that 45% of this Mexican business in 2024 has grown sales. Mexican food, with its burritos and tacos, was a favorite among American diners, but a series of chapter 11 banking lurbanes created a concern about whether the market was saturated. According to a report by the street, concerns about whether the market is saturated. It added that data showed that customers have cut out the outening of the eating out of economic factors, and that over -saturation is only one part of the problem. The report quotes a survey by El restaurants, showing that 45 percent of the Mexican restaurants expanded their sales in 2024. This is positive news, compared to the 13 percent who said their sales are flat, and 32 percent who saw the sales drop. Why the concern for Mexican restaurants? El Burro Loco, the Mexican restaurant of Abuelo, and the on the border chain, where the restructuring officer was the biggest hit, was the biggest hit. “Over the past few years we have been weighed by macro economic factors that negatively affected the company,” said OTB Holdings restructuring officer Jonathan Tibus about the Border’s 11 -banking chapter, the street said. Why did Mexican restaurants apply for bankruptcy? What we know … According to the report, in March 2025, OTB applied for chapter 11 bankruptcy. It quoted Pacemon’s data to report that the chain closed 40 underperforming locations, and has 60 that are still working. In April 2024, Tijuana Flats applied for bankruptcy and closed 11 restaurants. The brand turned hands into a strange 2025, Pacemonor data showed, he added. Later in June 2024, Rubio’s Coastal Grill 48 locations closed and submitted to restructuring. And more recently, Abuelo’s Mexican restaurant, in September 2025, cut 24 places (now underway) with reference to rising costs, labor challenges, falling sales. What is the future for El Burro loco? The bankruptcy filing shows that El Burro Loco Food Corp. on October 10, 2025, voluntarily applied for Chapter 11 bankruptcy in Florida, the report states with the help of Forupcy data. The deadline of the restructuring plan is January 8, 2026, with the aim of reorganizing debt and returning to profitability, he added.
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