"The hits just keep on coming for casual dining in America. After Bravo Brio Restaurants, Bar Louie, and Hooters all sought bankruptcy protection in 2025, Texas chain Abuelo's is now following suit. Based out of Lubbock, the Mexican eatery peaked with 40 locations but has since suffered a downturn that has taken a significant toll on its business. As is the case with many businesses, the pandemic caused serious hardship. The company has cited several reasons for its filing, including increased food and labor costs."
"In the bankruptcy filing, Abuelo's listed debts and liabilities between $10 million and $50 million, with parent company Food Concepts International also filing for protection. Because they are so closely tied together, the companies are looking to merge their bankruptcies in court. Plano, Texas saw its Abuelo's location close down in March after operating there since 1999. The location in Katy, Texas, which had been in business for seven years, shut down in January."
Abuelo's Mexican restaurant chain filed for bankruptcy protection after years of declining performance and multiple location closures. The company listed debts and liabilities between $10 million and $50 million, and parent company Food Concepts International also filed for protection. Both companies are pursuing a merged bankruptcy process because of their close ties. Sales fell 15% last year amid rising food and labor costs, staffing challenges, and changing diner preferences. Problems trace back to 2009 when expansion stopped, and pandemic-era disruptions further strained operations. Multiple locations have closed recently, including Plano (March), Katy (January), and Oklahoma City (fall 2024). Abuelo's peaked at about 40 locations across nine states and focused on made-from-scratch Tex-Mex with open-air courtyards.
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