Popular Mexican chain closes restaurants, no bankruptcy

Local restaurants often seem like they have always been there and always will be there.

In many cases, they have been part of the community for decades serving customers across multiple generations. Even when they pass from family ownership into becoming part of something bigger, the restaurant experience remains the same,

That makes it especially jarring when a local favorite closes unexpectedly.

Related: Popular pizza chain adds experimental new menu item fans will love

Sometimes a local restaurant closing can be a celebration. Maybe the owner has no successor in place and does not want to sell to outside interests.

When that happens, the shutdown can become a celebration as current and lapsed customers stop by for a final farewell.

That’s not usually what happens. Most restaurants close because they lose their lease, run out of money, or can no longer afford to operate in that market.

Covid forced thousands of restaurants to close as they lost revenue due to lockdowns and never recovered enough to pay back loans taken during that dark period. 

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵

The pandemic also forced many prices higher. Labor costs more as do many ingredients. In some cases, offices closed or went to a hybrid model, meaning fewer customers at lunch time for eateries built around serving office workers.

It has been a very dark time and the closings have not stopped.

Mexican restaurants have been hit especially hard by the current market conditions.

Image source: Shutterstock

A family-created Mexican restaurant with deep roots

While thousands of restaurants have suffered due to the current market, casual Mexican restaurants have been hit especially hard. That’s at least partially because the nature of the food they’re selling means that prices can only go so high.

When your basic business premise revolves around offering a lot of food at a good price, that makes it harder to deal with rising costs.  

Filiberto’s, a widely-known name in Arizona, has deep roots in the community.

“With a passion for authentic Mexican cuisine and a dream to share it with the world, Flavio, Aurelio, Francisco, and Filiberto Tenorio opened the very first Filiberto’s Mexican Food. From its humble beginnings, the restaurant quickly became a beloved spot for families seeking a friendly and flavorful dining experience,” it shared on its website.

More bankruptcy:

Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy

The single location quickly became a regional chain. 

“Encouraged by their success, the Tenorio family brought Filiberto’s to Mesa, Arizona in 1993, where it continued to thrive and win the hearts of locals. Celebrating over 30 years of serving up delicious Mexican fare, Filiberto’s remains a cherished institution, renowned for its mouth-watering entrees, 24-hour drive-thru service, and a warm, welcoming atmosphere that feels like home,” it added.

The chain serves its take on what most Americans consider the classic Mexican menu. It offers tacos, tortas, burritos, and more. 

Filiberto’s abruptly closes eight restaurants

Fans of Filiberto’s were shocked when they arrived at a number of the chain’s locations to see that they had been closed down. 

“Why are a bunch of locations closed with just a sign on the door that says closed. No explanation or nothing. Just a hand written sign. 19th ave and bell.. 83rd and tbird. (and I think these are owned by the same person. Anyone know whats up?” one user posted on Reddit.

In total, eight locations of the popular chain have closed without any comment from Compadres Group which owned all the shuttered restaurants. 

The chain has not made any mention of the closed restaurants on its website or its social media. Filiberto’s Facebook page did celebrate its recent opening in Las Vegas. 

Not every customer was surprised by the closures. Many in the thread complained about price increases.

“I get it that food and labor costs go up but Filiberto’s menu price shoot way up and the quality/taste of the food went way down. Honestly, I could not and did not want to eat there anymore. I used to get the bean and cheese burrito. It used to be around $7 which was ok as it tasted good and the portion was good for one meal. I got the bean burrito now $11 one time a few months ago and it was small, the beans were puréed and tasted bad and there was not any cheese/salsa,” wrote @jigmest.

Related: Big beverage brand unexpectedly files Chapter 11 bankruptcy

@Basswich69 shared a similar thought.

“I remember years ago I would get the BOGO bean burrito deal during the week and it was like $3 for 2 full size burritos. Then they changed it to the jr burrito and now the bean burrito isn’t even cheap enough for it to be worth it,” they added.