Breaking: Food Concepts International, the company behind a major Mexican restaurant chain, has filed for Chapter 11 bankruptcy, according to court records obtained exclusively by TheStreet.
Records reviewed by TheStreet show that the filing has been made. in the Texas Northern Bankruptcy Court show that the filing (subscription required) was made on Sept. 2.
Related: 100-year-old family restaurant chain closes 84 locations
Mexican restaurants have suffered in the post-Covid pandemic environment.
On the Border filed Chapter 11 bankruptcy and closed more than half of its 120 locations. That story, however, had a happy ending as the chain was purchased by Pappas Restaurants which has plans to rebuild the brand.
Tijuana Flats, a more casual fast-food-style Mexican chain also survived Chapter 11 bankruptcy by being sold to new ownership.
Rubio’s Coastal Grill suffered the same fate, closing 48 locations, but emerging from the Chapter 11 bankruptcy process.
Now, Food Concepts International, the company that owns the Abuelo’s Mexican restaurant chain has filed for Chapter 11 bankruptcy.
The filing has not yet been released. The company filed a voluntary Chapter 11 bankruptcy in Texas Northern Bankruptcy Court om Sept. 2.
Image source: Getty Images
Abuelo’s has been shrinking
Food Concepts International shared the following on its LinkedIn page.
Food Concepts International (FCI), based in Lubbock, Texas, owns and operates 40 Abuelo’s Mexican restaurants in 15 states throughout the United States. FCI has been in business since 1975. Abuelo’s has received national accolades as the top-ranked Mexican food restaurant, one of America’s top chains, and for offering great meals for less than $20.
That store count does not match what the chain shows on its website. As of Sept. 3, Abuelo’s shows 16 locations across 7 states. The chain has been quietly closing locations without making announcements.
Confirmed Abuelo’s Closures Since 2022
- Beavercreek, Ohio: The Abuelo’s near Fairfield Commons Mall in Beavercreek permanently closed in early January 2025. It originally opened in 2005. Source: dayton-daily-news
- Bricktown, Oklahoma City (OKC) : The well-known Bricktown location, which had operated for 30 years, closed in October 2024. The closure was confirmed via posted signage, with Abuelo’s management offering apologies and gift card usage at other locations. Source: News 9KOCO
- Last remaining OKC location: Shortly afterward, in mid-October 2024, the final Abuelo’s in Oklahoma City also shut its doors.Source: News 9Newson 6
- Chandler, Arizona – The Abuelo’s in Chandler closed abruptly in July 2025 after two decades of operation. Employees reportedly were not informed until the day they showed up for work. Source: mouthbysouthwest.com
- Chesapeake, Virginia (Greenbrier Mall): Though not detailed in mainstream news articles, Yelp listings indicate the Greenbrier Mall location in Chesapeake has closed (as of updates around September 2024). Source: Yelp
The chain described its business on its website.
“The story of Abuelo’s begins in the summer of 1989, when entrepreneurs James Young, Chuck Anderson and Dirk Rambo opened the first Abuelo’s Mexican restaurant in Amarillo, Texas. Our founders’ goal was simple. To open a restaurant serving delicious, made-from-scratch authentic Mexican food at everyday prices, as well as to create a place where guests of all ages could come together to experience the unique flavors, along with the art and culture of Mexico,” it shared.
That page also shares a differing restaurant count saying it has “restaurants in 9 states.
What Chapter 11 bankruptcy means for Abuelo’s
As of the evening of Sept. 2, all of the remaining Abuelo’s locations appeared to be operating. Spot checks of the stores showed that they were still accepting orders.
The company has not made a public statement on its Chapter 11 bankruptcy filing. Food Concepts International also did not immediately return a request for comment from TheStreet made on its LinkedIn page.
This story will be updated as more details are made public.
Meixcan xhains that filed for bankruptcy in 2024 and 2025
- On the Border Mexican Grill & Cantina: Filed for Chapter 11 in March 2025, citing inflation, labor shortages, and low customer traffic.
- Closed 0 underperforming locations, bringing the footprint down from around 120 to 80 total units (60 company-owned + 20 franchised in the U.S. and South Korea)
- Acquired by Pappas Restaurants in May 2025, which plans to revitalize the brand.
- Tijuana Flats: Filed Chapter 11 in April 2024.
- Closed 11 restaurants while undergoing restructuring and sale to a new ownership group.
- Rubio’s Coastal Grill: Filed Chapter 11 bankruptcy on June 5, 2024.
- Closed 48 locations in California. Average footprint peaked around 150 units.
Source: TheStreet
Why are Mexican restaurants failing?
TheRealFlavors.com, in a comprehensive guide on opening a Mexican restaurant, shared three challenges facing operators.
- Market Competition: One of the significant challenges faced by Mexican restaurants is market competition. The popularity of Mexican cuisine has led to a proliferation of Mexican restaurants, making the market highly competitive.
- Rising Food and Labor Costs: Rising food and labor costs are another challenge. Increases in the cost of ingredients and labor can erode profit margins if not managed properly.
- Adapting to Consumer Trends: Consumer trends and preferences are continually evolving, with a growing emphasis on health, sustainability, and technology. Mexican restaurants must adapt to these trends by offering healthier options, sourcing ingredients sustainably, and integrating technology into their operations, such as through online ordering and delivery services.
“Rising labor and food costs continue to pressure profit margins. Notably, labor costs now consume 40 percent to 45 percent of gross sales, up from 30 percent to 35 percent,” Philadelphia-based restaurateur Aaron Anderson shared.
Even chains like Chipotle have been hit by rising costs. The chain reported that food, beverage, and packaging costs reached 30.6% of total revenue in the second quarter of 2024, up from 29.7% a year earlier.
“The increase was due to inflation across several ingredient costs, primarily avocados, and dairy, higher usage of ingredients, as we focused on ensuring consistent and generous portions, and a protein mix shift from the success of our Smoked Brisket limited-time offer,” the company Q2 press release.
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