The casual restaurant sector faced plenty of financial distress in 2024 with several chains filing for Chapter 11 bankruptcy and closing restaurants.
The debtors blamed similar problems for causing their distress, including increased interest rates, rising inflation, and customers’ changing attitudes toward dining.
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Popular restaurant chain TGI Friday’s Inc. filed for bankruptcy protection on Nov. 2, 2024, seeking to reorganize its business, sell certain company assets, further reduce its restaurant footprint, and reject unfavorable leases and contracts.
Related: Popular breakfast dining chain files for Chapter 11 bankruptcy
TGI Friday’s on Jan. 28, 2025, filed motions to sell 18 of its remaining restaurants and close its other 12 remaining locations that lacked interest from potential buyers. Â
Italian restaurant chain Buca di Beppo on Aug. 4 filed for Chapter 11 bankruptcy protection seeking to reorganize with the support of its lenders after closing 13 underperforming locations in the week before it filed for bankruptcy.
The company asserted that the chain’s operations had been impacted by a significant drop in sales, rising food and labor costs, continued staffing challenges, and changes to customers’ preferences.
The company had 44 remaining locations in 14 states after the closings and sold its remaining assets to its prepetition lender Main Street Capital Corp. for a $27 million credit bid.
Some restaurant chains that have faced bankruptcy are making a comeback this year, however.
Popular Mexican chain Chi-Chi’s, which closed all of its locations 20 years ago after filing for Chapter 11 bankruptcy and facing a devastating Hepatitis A outbreak, will reopen for business in 2025 after the founder’s son reached an agreement with the trademark holder to use the restaurant name.
Tijuana Flats is expanding after exiting bankruptcy in January 2025.
Image source: Shutterstock
Tijuana Flats opens new restaurants
And formerly bankrupt Mexican fast-casual restaurant chain Tijuana Flats took a big step in its comeback as it revealed it will open its first Kentucky location on Feb. 24 in Louisville.
Related: Troubled trucking company files for Chapter 11 bankruptcy
Tijuana Flats franchisee GOE Tacos, which operates eight restaurants in the Louisville metro area, signed a multi-unit development agreement with the fast-casual chain that calls for it to open more locations between Southern Indiana and Elizabethtown, Ky., according to a statement from the dining chain.
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GOE Tacos also operates other restaurant franchises in the Louisville area, including Wingstop and Freddy’s.
“As we continue to bring our bold flavors and vibrant hospitality to new markets, expanding into Kentucky was a natural choice,” Tijuana Flats CEO Jim Greco said in a statement. “The team at GOE Restaurant Group has an exceptional reputation for delivering outstanding dining experiences in Louisville, and we’re excited to partner with them as we introduce Tijuana Flats to this dynamic community.”
Tijuana Flat’s menu includes classic Mexican dishes, including tacos, burritos, quesadillas, flautas, and chimichangas, along with various bowls and salads.
The Mexican chain offers weekly specials, including Tijuana Tuesdaze with Dos Tacos, chips, and a drink for $6.99 on Tuesdays; Throwback Thursdaze with a burrito or bowl with chips and a drink for $7.99 on Thursdays; and 2 for $22 Saturdaze with two entrees, two drinks, and a starter for $22 every Saturday.
Tijuana Flats exited bankruptcy in January
Tijuana Flats on April 19, 2024, filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Middle District of Florida, closed 11 of its locations and sold the company to a new ownership group. It exited bankruptcy in January 2025.
New owners Flatheads LLC purchased the restaurant chain from TJF USA LLC with a plan to revitalize its restaurants and reinvigorate the customer experience.
The company said that the sale and bankruptcy filing was a culmination of a strategic review that it began in November 2023 seeking options to improve its business.
The closing of 11 locations was necessary after a unit-by-unit analysis of financial performance, occupancy costs, and market conditions. The chain’s remaining restaurants continue to operate as usual.
Tijuana Flats was founded in 1995 in Winter Park, Fla., and currently operates about 100 company-owned and franchised restaurants in Alabama, Florida, Kentucky, North Carolina, and Tennessee.
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