The Mexican restaurant sector has encountered challenging economic conditions over the last two years which have resulted in dining chains, like Salt and Lime Modern Mexican Grill in Arizona, filing for bankruptcy protection.
In the case of Moe’s Southwest Grill franchisee Quality Fresca I LLC, which operated 38 Mexican restaurant locations in Florida, South Carolina, Virginia, and Washington, D.C., the company filed for Chapter 11 bankruptcy, seeking to close 16 locations, facing industry headwinds, increased costs, and declining revenue, which depleted its liquidity, according to court documents.
In severe cases, chains such as On the Border Mexican Grill & Cantina needed to liquidate and permanently close down operations after suffering more severe financial distress.
Salt and Lime files for bankruptcy
The parent of Mexican restaurant chain Salt and Lime Modern Mexican Grill in Scottsdale, Ariz., filed for Chapter 11 bankruptcy on Aug. 20, 2026, after the debtor’s initial filing was dismissed 13 days earlier, according to PacerMonitor.
The filing is the third Chapter 11 case involving Salt and Lime affiliates in 2026, following two cases that were dismissed earlier in the year.
The debtor did not give a reason for filing for bankruptcy in its petition.
Salt and Lime’s owner Four Fingers LLC filed a first Chapter 11 petition on June 15, 2026, in the U.S. Bankruptcy Court for the District of Arizona, but the case was subsequently dismissed on Aug. 7, according to court papers.
The latest filing was the third Chapter 11 petition filed by affiliates of the owners of Salt and Lime in 2026, as the restaurant’s Scottsdale-based subsidiary Salt and Lime 44 LLC filed for Chapter 11 protection on Feb. 26, 2026, but that case was dismissed on March 16, 2026, and closed on April 15, 2026, according to BKData.com.
Chain has three locations
Salt and Lime Modern Mexican Grill opened its first location in Scottsdale at 9397 E. Shea Blvd. in 2014, and expanded to its Cave Creek, Ariz., location in 2025, and opened a third location in Phoenix at 5031 N. 44th St. later in 2025.
The Mexican restaurant features a long list of menu specials and promotions each week. The restaurants host Pitcher Perfect Fridays, with a special prices for their Saltyrita and Casarita pitchers and Margaritas are just $7 every day, all day, according to its website.
Restaurant offers classic discounts
Salt and Lime hosts happy hour all day every Sunday and the restaurant offers a traditional Taco Tuesday with half off specialty tacos every Tuesday. Customers can also try the restaurant’s Wine and Whiskey Wednesdays, featuring half off bottles of wine and whiskey pours.
The restaurant’s menu features a variety of Mexican items, including 17 specialty tacos, six different burritos, enchiladas, tamales, carnitas, and chile rellenos.
On the Border liquidates
Salt and Lime isn’t the only Mexican chain facing financial distress. On the Border closed 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.
The restaurant chain’s franchise locations in South Dakota, Florida, Nevada, California, and South Korea continue operating independently, however, and were not included in the Chapter 7 case.
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