There were once 40 stores across the United States, but now only 16 locations remain.
As a result, the restaurant chain filed for bankruptcy.
Abuelo’s – a 36-year-old Mexican restaurant owned by Food Concepts International – recently quietly filed in a U.S. Bankruptcy Court in the Northern District of Texas. The chain cites declining sales, rising costs, staffing issues and changing consumer preferences.
It also lists debts and liabilities of between $10 million and $50 million.
Meanwhile, Food Concepts International also filed for bankruptcy in early September and the two companies asked the court to consolidate their cases.
“This decision is part of a strategic rebuilding process aimed at strengthening our long-term financial position,” Abuelo’s said in a statement obtained by Restaurant Business. “We will continue normal operations and remain committed to maintaining stability for our employees, suppliers and customers. During this time, our loyal customers can join us and expect the same quality and hospitality that we have always provided.”
According to FSR Magazine, the chain found itself struggling for several years as challenges began in 2023, with traffic declining 5.9% that year and persisting through 2024. To address the problem of declining sales, Abuelo’s closed underperforming stores and reduced overhead costs.
Abuelo’s currently operates stores in Arizona, Arkansas, Florida, Kansas, Oklahoma, South Carolina and Texas.
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