Another Mexican restaurant chain files Chapter 11 bankruptcy

Mexican restaurants have been suffering over the past couple of years. That’s partially due to consumers cutting back on their spending, and partly due to oversaturation.

Americans love Mexican food, and that has led to most markets having more Mexican restaurants than they can support. There’s no one specific thing hurting Mexican chains as opposed to other struggling restaurants.

Experts have not dubbed this a trend. Instead, it’s part of something bigger.

“On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the company,” Jonathan Tibus, restructuring officer for OTB Holdings, said in On The Border’s Chapter 11 Bankruptcy filing.

And while there have been multiple bankruptcies, a survey by el Restaurante shows the news is not all bad.

• The el Restaurante survey showed that 45% of Mexican restaurants have seen sales expand in 2024.

• Almost a quarter (23%) said sales have been flat.

• The remaining 32% said sales are down this year.

• In 2023, only 25 percent of survey respondents reported that sales were down from the previous year.

Despite those somewhat encouraging numbers, another Mexican chain, El Burro Loco, has filed for Chapter 11 bankruptcy protection.

• On The Border Mexican Grill & Cantina
  Filed: March 2025 Details: Closed 40 underperforming locations before/around filing; 60 company-operated units remained. Assets & liabilities were estimated between $10 million and $50 million.Source: PacerMonitor

• Tijuana Flats
  Filed: April 2024 Details: Closed 11 restaurants during restructuring, changed ownership; emerged from Chapter 11 in early 2025 with menu/format refresh plans.Source: PacerMonitor

• Rubio’s Coastal Grill
  Filed: June 5, 2024 Details: A fast-casual Mexican chain; filed to restructure after struggles, especially in California. Closed 48 locations there.Source: PacerMonitor

• Abuelo’s Mexican Restaurant

• Filed: September 2025

• Details: Operated by Food Concepts International; peak about 40 locations, down to 16 or so at the time of filing. Cited rising costs, labor challenges, falling sales. Liabilities/assets between $10 million and $50 million.
  Source: PacerMonitor

While it’s not a large chain, El Burro Loco had build a large following in Central Florida. And because its locations are in high-tourist locations, the small chain had an outsized reputation.

The chain had an overall rating of four stars on Yelp, where most reviews were positive.

“Solid spot for Mexican food in Orlando! The food was great. I got the California burrito and it was loaded with flavor, big portions, and everything tasted fresh. The service was quick and friendly even though it was busy, and they made sure everything came out hot. The ambiance is casual and perfect for a late-night bite with clean tables, upbeat energy, and a chill vibe overall. Prices are fair for the portion size too. Definitely a place I’d come back to when I’m craving a good burrito,” wrote Christian H from Georgia, an Elite 25 reviewer on Yelp.

The chain did not have a website, but shared a description of its business on Yelp.

“Taste the vibrant and authentic Mexican Street Food delights and embark on a culinary adventure at El Burro Loco, where the vibrant flavors of Mexico come alive! Prepare to have your taste buds tantalized as our dedicated team of culinary artisans crafts each dish with passion and care,” it shared.

The chain, which started as a food truck, has not shared what will happen during its Chapter 11 bankruptcy. It has, however, closed its “BVL” location, but said that its flagship on International Drive (a major tourist destination) would remain open.

BVL is Buenaventura Lakes, a community near Orlando.

• El Burro Loco Food Corp filed for Chapter 11 bankruptcy in Florida Middle District Court on October 10, 2025.

• Case #: 6:25-bk-06539

• It is a Voluntary Chapter 11 filing, under Subchapter V.

• Plan deadline for the Chapter 11 Subchapter V plan is January 8, 2026.

• Debtor’s name: El Burro Loco Food Corp, also does business as El Burro Loco, El Burro Loco Twisted Mexican Cuisine, El Burro Loco I-Drive.

Source:Inforuptcy

The filing indicates that El Burro Loco Food Corp is seeking to reorganize its debts and operations under the protection of the bankruptcy court, aiming to return to profitability, according to Inforuptcy.

No debt or assets information has been made publicly available yet.

Related: Controversial Trump Burger chain closes all locations (blame ICE)

This story was originally reported by TheStreet on Oct 11, 2025, where it first appeared in the Restaurants & Fast Food Industry News section. Add TheStreet as a Preferred Source by clicking here.