The Once-Popular '90s Mexican Chain That Serves Authentic Family Recipes (Just 16 Locations Left)
Abuelo's Mexican Restaurant was once a go-to spot for sit-down enchiladas, chimichangas, and other Tex-Mex staples. Over the past year, like many chain restaurants, Abuelo's has encountered financial struggles (Bar Louie, Planet Hollywood, and other fast-casual restaurant chains are struggling as well). The Texas-based chain recently closed 24 restaurants, leaving just 16 remaining across the U.S. The chain continues to serve customers at locations in Arkansas, Arizona, Florida, Kansas, South Carolina, and Texas.
The reasons for Abuelo's multi-location shutdown are myriad, including "sales declines, rising costs, staffing challenges, and changing consumer preferences," according to Restaurant Business. Abuelo's is known for providing a sit-down experience, which (to be clear, we're speculating here) may have contributed to its decline. Visits to sit-down restaurants like Abuelo's slowed as the economy took a downturn in the mid-2010s, and the pandemic certainly didn't do chain restaurants any favors. While Abuelo's may be taking serious steps to change its financial situation, this doesn't necessarily mean the chain itself is doomed.
Why Abuelo's isn't alone in its struggle — and how it might manage a comeback
Believe it or not, bankruptcy isn't always a death sentence for chain restaurants, and it's possible Abuelo's' could follow in the footsteps of other chains that have actually come back from bankruptcy, including Sbarro and California Pizza Kitchen. Taking a new approach may be key — Sbarro, for example, switched to a choose-your-own-adventure model when it comes to ordering pizza (much like Chipotle does for burritos), according to Forbes. California Pizza Kitchen dug its heels in and expanded to new locations post-bankruptcy, focusing heavily on using customer loyalty to its advantage.
It's still too early to say exactly what will happen to Abuelo's in the future, but it's clear the chain has a loyal fan base that loves to sing the restaurant's praises on social media. One potential issue for Abuelo's: The chain didn't file bankruptcy on its own. Abuelo's parent company, Food Concepts International, also filed. This doesn't mean all hope is lost, however. The chain is clear it doesn't intend to suspend operations — in fact, it intends to do the opposite. According to the Lubbock Avalanche-Journal, an Abuelo's company-wide email statement stated, "We're excited to continue welcoming you, sharing great meals, and growing alongside the communities that have supported us. We are honored by your continued dedication and are looking forward to an even brighter future together."