These 6 Mexican Chains Are Losing Customers Fast

Some Mexican restaurants are thriving right now, while others aren't exactly crowd pleasers. For example, Taco Bell is on fire, with strong sales and happy customers due to extensive value meal offerings and new and innovative menu offerings. However, there are a bunch of Mexican chains, including fast food, fast casual, and more sit-down type spots, that are experiencing a drop in sales and losing customers fast. Here are 6 chains that are struggling right now.

On the Border

On the Border, once a very popular Mexican chain, has been suffering in recent years. The brand filed for Chapter 11 bankruptcy on March 5, closing nearly 80 locations – almost two-thirds of its stores, according to its filing in U.S. Bankruptcy Court for the Northern District of Georgia. According to Fast Company, On The Border's president, Chris Rockwood, explained that the "restructuring is the best path forward for On The Border. It allows us to address several financial and operational challenges and emerge stronger and re-focused on our growth."

Tijuana Flats

In April 2024, Tijuana Flats, a Florida-based chain of fast-casual Tex-Mex restaurants, declared Chapter 11 bankruptcy and shuttering 40 restaurants. However, in January 2025, they announced that under new ownership, they were making a combeack, making some significant changes in hopes of bringing customers back. "Tijuana Flats is so back and better than ever," the company wrote in a recent Instagram post. "We have been listening to all of the feedback and have been working on improving key pieces of our menu and bringing back fan favorites like our Mexican rice and Pico!⁠ We hope to see you soon to give us a try.

Rubio's Coastal Grille

Rubio's Coastal Grill, a popular chain with lots of locations in California, closed 48 restaurants in June 2024, announcing a Chapter 11 bankruptcy filing. This marked the chain's second bankruptcy in just a few years. The company attributed it to rising costs, declining customer visits, and California's minimum wage hike.

Del Taco

Del Taco has experienced struggling sales as of late, with same-store sales declining 4.5% the quarter that ended in January 2025. They also closed  a few locations in Colorado, but claimed the closures were "temporary" and said the restaurants would reopen "as soon as possible." "At this time, our Denver and Colorado Springs franchise locations are temporarily closed," the San Diego-based chain said in a statement. "We will re-open these locations as soon as possible and will share updates as they become available."6254a4d1642c605c54bf1cab17d50f1e

Moe's Southwest Grill

Moe's Southwest Grill was a popular Tex Mex restaurant for many years. However, according to. customers on Reddit restaurant has gone "downhill." Some complains that the food doesn't taste fresh and is bland, "like they use day old stuff that's been refrigerated and reheated." They also coplan that prices have gone way up.

Guzman y Gomez

Aussie transplant Mexican fast-food chain Guzman y Gomez has been trying to break into the US market, but isn't achieving the success it hoped. According to Reuters, dwindling sales in the US led to overall loss. "The performance of the U.S. restaurants reflects the opportunity to increase brand awareness and improve the guest experience with network sales for the half decreasing," the company said in a statement.