Major Mexican dining chain shuts down locations, no bankruptcy

The Mexican restaurant sector finished a challenging year in 2025, as economic issues forced dining chains to close underperforming locations and restructure their financial situations. In some cases, they filed for bankruptcy. Fast-food chain Taco Cabana, which had operated 146 restaurants in New ...

Jan 25, 2026 - 21:00

Major Mexican dining chain shuts down locations, no bankruptcy

The Mexican restaurant sector finished a challenging year in 2025, as economic issues forced dining chains to close underperforming locations and restructure their financial situations. In some cases, they filed for bankruptcy.

Fast-food chain Taco Cabana, which had operated 146 restaurants in New Mexico and Texas, closed five locations in September 2025, Nation’s Restaurant News reported.

Mexican restaurant chains filed for bankruptcy

Restaurant chain Abuelo's declined from 40 locations in 15 states to 16 locations across seven states by the time it filed for Chapter 11 in September 2025.

Another restaurant chain, On The Border Mexican Grill & Cantina, had about 120 locations at the beginning of 2025 and closed or vacated 40 non-performing stores on Feb. 24 because of problems with rent and/or financial performance.

On The Border filed for Chapter 11 bankruptcy on March 4, 2025, with plans to sell its assets to its prepetition bridge loan lender.

Some smaller chains have also closed locations, including fast-food chain Quesadilla Gorilla, which shut its Tulare, Calif., location on Nov. 9, 2025, and a Hanford, Calif., location on Dec. 20, 2025. The chain continues operating in three other California locations.

A smaller Mexican chain, Matteo’s Authentic Mexican Food, closed all four of its locations in Texas and New Mexico, the company said on Nov. 10, KTSM reported.

Despite certain Mexican chains facing economic issues, the market size of the sector is expected to rise from $76.2 billion in 2025 to $80.2 billion in 2026, according to Business Research Insights.

Torchy's Tacos closes restaurants in 2 states

And now, popular fast-casual Mexican restaurant chain Torchy's Tacos announced it will close four of its locations in two states on Feb. 3, after evaluating the performance of its portfolio.

The Austin, Texas, Mexican street taco chain said that it will close two restaurants in Columbus, Ohio, located at 3726 W. Dublin Granville Road and at 6042 N. Hamilton Road, according to the Columbus Dispatch.

Columbus diners will say goodbye to Torchy's Tacos, as the closing of the two Columbus restaurants signals the restaurant's exit from the Ohio capital's market after less than four years.

The chain closed another location in the city on Gemini Place in August 2025.

The 20-year-old Mexican restaurant chain continues to operate one Ohio location in Liberty Township near Cincinnati.

Torchy's Tacos will also close two restaurants located at 999 North State Road 434 in Altamonte Springs and 3310 Daniels Road in Winter Garden, Fla., Fox 35-TV reported.

More closings:

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The Mexican chain opened the Altamonte Springs location in December 2023 and the Winter Garden restaurant in 2024.

The restaurant chain will still operate two Florida locations in Orlando and North St. Petersburg after Feb. 3.

Restaurant chain evaluates its portfolio

"After carefully evaluating performance across our portfolio and our long-term plans for the brand, we've made the difficult decision to close the locations," the company said in a statement sent to the media.

"The decision to close a restaurant is never an easy one. We're incredibly grateful to the team who dedicated their time and energy to these locations," the statement said.

Torchy's Tacos locations closing

3726 W. Dublin Granville Road, Columbus, Ohio
6042 N. Hamilton Road, Columbus, Ohio
999 North State Road 434, Altamonte Springs, Fla.
3310 Daniels Road, Winter Garden, Fla.

Torchy's Tacos lists 120 restaurant locations in 14 states on its website.

The Mexican restaurant's menu includes a variety of beef, chicken, pork, seafood, and veggie street tacos, various bowls, burritos, breakfast tacos and burritos, and a kids' menu.