The casual Mexican restaurant sector has faced a challenging year in 2026, as dining chains have closed underperforming locations, filed for Chapter 11 bankruptcy protection to reorganize their businesses, and in at least one case, filed for Chapter 7 liquidation to shut down all operations.
Once popular Mexican chain On the Border ceased operations in 2026, after closing all of its locations before its operating company, OTB Hospitality, filed for Chapter 7 liquidation on June 19, 2026, the company shared in a press release.
Another chain facing financial distress is Session Taco, a St. Louis-based casual Mexican dining chain, which closed one of its restaurant locations for the second time in seven months. The chain has not filed for bankruptcy.
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New restaurant closes after 3 months
The Mexican chain, originally branded Mission Taco Joint until a 2023 name change, closed its Sobremesa restaurant in St. Charles, Mo., on Sept. 13 after only three months of operation, according to its Facebook page.
The St. Charles location was previously branded as Session Taco until the company closed the restaurant on Feb. 13 to redesign and rebrand the restaurant as Sobremesa before reopening in June 2026.
Session Taco’s owners had renovated the Sobremesa restaurant space, adding some booths, more lower seating options, warm colors, new lighting, and artwork. The updated restaurant served tacos, burritos, soups, salads, fajitas, and other entrees.
“Sobremesa” is a Spanish term for the tradition of hanging out after a meal to converse, relax, and connect with family and friends.
Economy hit restaurants hard
“Unfortunately, the economy has hit restaurants hard and sales are not close to where they need to be to sustain operations,” Sobremesa‘s ownership said in a message on their Facebook page. “Very sorry to say that we will be closing this Sunday, Sept. 13.”
“When we closed Session Taco to create Sobremesa, we wanted to bring something exciting to St. Charles. We created a beautiful space, a great menu and an amazing team,” the message said.
Sobremesa gift cards can be used at any of the company’s three remaining restaurants: Session Taco at 6235 Delmar Blvd. and 908 Lafayette in St. Louis, and LaPeZ Mod Mex at 398 N. Euclid Ave. also in St. Louis, the message said.
Other Session Taco locations closed
The St. Charles Session Taco restaurant closed in February about three weeks after the owners closed a location in Kirkwood, Mo., on Jan. 25, 2026, according to St. Louis Magazine.
The Mexican restaurant chain, which at one time operated nine locations, closed its Town and Country location in St. Louis in November 2025 after opening in April 2024.
“We signed the lease there in early 2023 when restaurants were seeing a post-Covid boom, but then the restaurant sales started declining across the country the second half of 2023, and by the time we opened it was very difficult to gain any traction at the location, despite mostly positive reviews,” Co-owner Adam Tilford told KSDK-TV after the closing.
The chain in December 2025 closed its Central West End location in St. Louis and rebranded the restaurant as LaPeZ Mod Mex, according to the Webster-Kirkwood Times. LaPeZ Mod Mez continues operating as one of the restaurant chain’s three locations.
Session Taco had some setbacks since opening as Mission Taco Joint in 2013, facing a trademark infringement lawsuit in 2023, and completing a name change in September 2024.
Owner settles trademark lawsuit
The Mexican restaurant chain settled a lawsuit with Mission Foods parent Gruma in November 2023, agreeing to change its name from Mission Taco Joint, after the Mission tortillas maker sued the restaurant chain for trademark infringement.
Session Taco’s owner explained that the restaurant dropped the M and the I in the Mission Taco Joint name and added an S and an E to come up with its new name.
“And yes, if you drop the M and the I, you have Session Taco. And yes, this was intentional,” owner Tilford told KTVI-TV.
The chain has closed six locations since expanding to as many as nine locations by 2022.
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