Mexican restaurants, chains hit hard by Chapter 11 bankruptcy

2025 has seen a lot of Mexican and BBQ restaurants file Chapter 11 bankruptcy.

Jul 27, 2025 - 22:30
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Mexican restaurants, chains hit hard by Chapter 11 bankruptcy

Apt because your loved ones makes brisket and ribs that folk rave over would now not imply your restaurant will succeed.

While proudly owning a cafe comes with its have list of complications, working with family brings its have challenges. However, family businesses make up a extensive a part of the Unites States team.

These businesses are a extreme a part of the economy, but they face notable survival struggles.

"From native retail outlets to Fortune 500 firms, family-owned enterprises force lots of the country’s economic recount and employment. This makes their success wanted for general economic health," Enterprise Initiative reported.

The numbers are literally impressive:

  • Family-owned businesses fable for 87% of all replace tax returns in the U.S., with 32.4 million family businesses
  • Family companies make a contribution 54% of non-public sector GDP ($7.7 trillion) and make exhaust of 59% of the non-public-sector team

And family-owned replace primarily contain a slightly first price chance of success.

"The in fashion existence span of a family-owned replace is 24 years  About 40% of U.S. family-owned businesses transition into a 2nd-expertise businesses, approximately 13% are passed down efficiently to a third expertise, while 3% dwell on to a fourth or past," per data reported by Cornell's SC Johnson College of Enterprise.

Drinking areas, nonetheless, blueprint now not contain the identical song document.

Connected: Iconic informal restaurant chain faces 'woke' customer controversy

"A be aware by two economists at UC Berkeley discovered that 17% of independently owned full-service restaurant startups failed of their first 300 and sixty five days. A comparable be aware revealed in Cornell Hospitality Quarterly discovered that up to 26% of self sustaining drinking areas failed of their first 300 and sixty five days of operation," a insist from Oregon Express shared.

Running a cafe has never been straightforward, and latest market instances, which consist of rising rents and labor charges, contain claiming native favorites that had notable followings.

Mexican chains were hit very laborious by the economy.

Image source: Shutterstock

Burnt BBQ & Tacos recordsdata Chapter 11 financial catastrophe

Burnt, LLC, working as Burnt BBQ & Tacos, a cafe replace based in Plano, Texas, focusing on BBQ and taco offerings, has filed for Chapter 11 Subchapter V financial catastrophe safety in the Northern District of Texas.

The filing on July 23, 2025, confirmed that the restaurant had sources of decrease than $50,000 and liabilities between $100,001-$500,000.

Burnt BBQ & Tacos operates from its predominant position at 2929 Custer Motorway in Plano and has elected to proceed as a small replace debtor.

Court paperwork define the replace has fewer than 50 creditors, and the debtor reports that after administrative charges are paid, no funds will seemingly be available for distribution to unsecured creditors.

"Based in 2020, Burnt BBQ & Tacos is one incredible BBQ joint changing the device you glimpse at BBQ and tacos one dish at a time. We're undeniably first price, upright to flavor, and irresistibly rattling good. We take pride in our capacity to bring the most appealing flavors to BBQ and part them with Plano and surrounding areas," the company shared on its online page material.

Extra Financial atomize:

  • In fashion pizza eating chain franchisee recordsdata Chapter 11 financial catastrophe
  • Main trucking operation recordsdata Chapter 11 financial catastrophe
  • Las Vegas casino proprietor recordsdata for Chapter 11 financial catastrophe

Burnt BBQ & Tacos has now not shared a funding understanding or made it sure whether it plans on continuing to feature. It currently is taking pickup and supply orders on its online page material.

The Mexican and BBQ restaurant's social media has now not acknowledged the Chapter 11 filing. Its most-fresh submit touted one in all its rubs that can even be purchased online.

"In a position to take your taste buds on a refreshing stagger? Our Citrus Rub is here to brighten up your BBQ trip with its zesty, tangy flavors. Completely seasoned and completely irresistible, or now not it is miles a must-try for anyone who loves a shrimp bit citrus twist of their meal. Swing by Burnt BBQ & Tacos and treat yourself this day," it shared on Fb.

Mexican drinking areas that closed in 2025

  • Cascabel Mexican Patio (San Antonio, TX): Closed after 22 years on July 22, 2025, on account of economic tension, construction disruptions, and parking adjustments.
  • MXO (West Hollywood, CA): Upscale Mexican steakhouse closed July 21, 2025, below a 300 and sixty five days after opening in Sept. 2024.
  • De Noche (Portland, OR): Small‑plates Pacific Northwest-fashion Mexican opened in 2022; permanently closed in May 2025 as a part of República & Co. reorganization.
  • La Bartola (Toronto, Canada): Vegan plant‑based Mexican eating operated from June 2020 till closing March 15, 2025.
  • Fernando’s Mexican Delicacies (Dallas & Richardson, TX): Both areas closed May 18, 2025, after twenty years, on account of rent complications.
  • Guerrilla Tacos (Arts District, Los Angeles): Pioneering Mexican theory by Wes Avila closed January 31, 2025, after 13 years.
  • La Lupita Mexican Eatery (Richmond, CA): Completely closed as confirmed in July 2025 insist.

These BBQ drinking areas closed in 2025

  • AJ’s Pit Bar‑B‑Q (Denver, CO): Michelin‑known, closed in February 2025 after workers stroll‑out and PPP fraud charges.
  • Del Toro BBQ (Mansfield, TX): Central Texas‑fashion BBQ fusion space, closed June 23, 2025, as a part of group closures by Native Favorite Drinking areas.
  • Gessner’s Grub BBQ (Houston, TX): Closed May 12, 2025; proprietor cited health complications, militia‑connected, after working since 2019.
  • Smokey Bones Bar & Fire Grill (Roanoke, VA): Valley Behold Mall position closed July 6, 2025; a part of broader closures all over the chain.

Up to 30 Smokey Bones drinking areas are both closing or converting to Twin Peaks drinking areas in 2025.

Connected: In fashion pizza and beer chain recordsdata for Chapter 11 financial catastrophe

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