Across the United States, more Mexican chains are shutting locations as higher costs squeeze profits and customers think twice about eating out. From Tex Mex drive through spots to regional brands, the latest closures show how fragile the business can be when money gets tight.
Taco Cabana in Texas, Quesadilla Gorilla in California, Matteo’s Authentic Mexican Food, and Session Taco in Missouri have all closed restaurants in recent weeks. Their decisions look different at each address, but together they reveal a pattern of trimming weaker stores and trying to ride out a tougher economy.
Rising costs force Taco Cabana to shrink at home
Taco Cabana began in San Antonio in the late 1970s and grew into a familiar drive through stop for tacos and margaritas across Texas. This fall the chain said it had shut five underperforming restaurants in its hometown, and trade outlet Nation’s Restaurant News reported it ended 2024 with 146 locations, down from more than 170 in 2019.
The basic problem is easy to grasp even if the accounting is not. Inflation means it pays more for meat, tortillas, and oil, while higher interest rates make loans pricier and utility bills keep rising, so closing weak sites is one of the few ways to stop the bleeding.
Quesadilla Gorilla trims stores but still plans to grow
On the other side of the country, Quesadilla Gorilla grew out of Visalia, California, and built a following with a simple menu and relaxed feel. Local station ABC30 reported that the chain will close its Tulare restaurant on November 9 and its Hanford shop on December 20, a move that leaves about a dozen workers looking for new jobs.
Customers and staff describe the closures as somber, since the restaurants were meeting spots as well as quick lunch counters. Even so, the company is keeping locations open in Fresno, Visalia, and San Luis Obispo and still plans a new store in Clovis in early 2026, shifting toward areas where demand looks stronger.
Matteo’s closes all four restaurants after costs surge
Matteo’s Authentic Mexican Food, a small regional chain serving the border region around El Paso and southern New Mexico, has taken a drastic step. In November local broadcaster KVIA reported that the owners would shut all four locations in El Paso, Las Cruces, and Alamogordo, bringing an abrupt end to the brand’s presence in the region for now.
In a statement shared on social media, the owners said rising inventory costs, declining sales, and their promise to use only high quality ingredients had made it impossible to keep going. National coverage linked Matteo’s to a wider wave of chains, including On the Border, Denny’s,Red Lobster, TGI Friday’s, Applebee’s, and Noodles and Company that have all shut locations this year as inflation and operating costs cut into profits.
Session Taco scales back after rebrand and legal fight
In the St. Louis and Kansas City areas, Session Taco has been juggling more than just food costs. St. Louis Public Radio reported that the chain changed its name from Mission Taco Joint after tortilla maker Gruma, the parent company of Mission Foods, sued over the original brand and reached a confidential settlement that led to a full rebrand.
More recently, the St. Louis Business Journal reported that Session Taco closed its Town and Country location at 1000 Woods Mill Plaza less than two years after it opened, leaving the company with five locations after previously operating nine. City documents show that local officials were still reviewing plans for outdoor dining there this summer, a reminder of how quickly a site can move from asking for more patio seats to locking its doors.
What these closures mean for diners and workers
Taken together, these closures show how Mexican restaurant chains are trying to survive a bumpy period rather than give up entirely. Companies are closing weaker locations, leaning more on franchised stores, simplifying menus, and pouring their limited resources into the sites that still draw steady crowds.
For diners, the changes can feel sudden and personal. One week a favorite spot for late night tacos or a quick family dinner is open, and the next week the lights are off and the sign is gone, even while the same logo might be opening somewhere farther down the highway.
Workers and neighborhoods feel the impact too, as employees scramble to replace lost income and vacant storefronts sit dark in busy shopping centers. Many analysts say that as long as food, rent, and borrowing costs stay high, more restaurant brands will probably shrink their footprint before they get the chance to grow again.
