Mexico’s restaurant industry capped off a challenging year in 2025, with economic problems forcing restaurant chains to close underperforming locations and restructure their finances. In some cases, they file for bankruptcy.
Fast food chain Taco Cabana, which had operated 146 restaurants in New Mexico and Texas, closed five restaurants in September 2025, Nation’s Restaurant News reported.
By the time it filed for Chapter 11 in September 2025, the number of restaurant chain Abuelo’s stores had dropped from 40 in 15 states to 16 in seven states.
On The Border Mexican Grill & Cantina, another restaurant chain with about 120 stores at the start of 2025, closed or vacated 40 underperforming stores on February 24 due to rental and/or financial performance issues.
On The Border filed for Chapter 11 bankruptcy on March 4, 2025, and plans to sell its assets to its pre-petition bridge lender.
Several smaller chains have also closed stores, including fast-food chain Quesadilla Gorilla, which closed its Tulare, Calif., location on November 9, 2025, and a Hanford, Calif., location on December 20, 2025. The chain continues to operate at three other locations in California.
Matteo’s Authentic Mexican Food, a smaller Mexican chain, said on November 10 that it closed all four of its stores in Texas and New Mexico, KTSM reported.
Despite economic problems faced by some Mexican chains, the industry’s market size is expected to grow from $76.2 billion in 2025 to $80.2 billion in 2026, according to Business Research Insights.
Now, popular Mexican fast-casual chain Torchy’s Tacos has announced that it will close four locations in two states on February 3 after evaluating the performance of its portfolio.
The Austin, Texas-based Mexican street taco chain said it will close its two restaurants in Columbus, Ohio, at 3726 W. Granville Road in Dublin and 6042 N. Hamilton Road, the Columbus Dispatch reported.
Columbus diners will say goodbye to Torchy’s Tacos as the closings of the two Columbus restaurants mark the restaurant’s exit from the Ohio capital market after less than four years.
The chain closed another branch at Gemini Place in the city in August 2025.
The 20-year-old Mexican restaurant chain continues to operate a location in Liberty Township, Ohio, near Cincinnati.
Torchy’s Tacos will also close its two restaurants at 999 N. State Road 434 in Altamonte Springs and 3310 Daniels Road in Winter Garden, Florida, Fox 35-TV reported.
