A well-liked Mexican restaurant chain that after held a promising future with 40 shops throughout the U.S., has filed for chapter and downsized to simply 16 areas.
Abuelo’s, a 36-year-old restaurant chain, owned by Meals Ideas Worldwide, filed for chapter earlier this month within the U.S. Chapter Courtroom for the Northern District of Texas.
The chain listed belongings and liabilities between $10 million and $50 million, courtroom filings present.
Likewise, Abuelo’s father or mother firm Meals Ideas Worldwide filed for chapter in early September and has requested that the instances be mixed.
“This determination is part of a strategic reconstructing course of to strengthen our long-term monetary place,” Abuelo’s mentioned in an announcement obtained by Restaurant Enterprise.
“We are going to proceed regular operations and stay dedicated to sustaining stability for our workers, distributors and prospects. By way of this time, our loyal prospects can be part of us and anticipate the identical high quality and hospitality as we’ve all the time supplied.”
In accordance with FSR Journal, the chain has struggled for a number of years now.
The corporate attributed the submitting to a drop in gross sales, rising meals and labor prices, and a change in shopper pursuits.
FSR studies these challenges began arising in 2023, with site visitors dropping 5.9% that yr and persisting into 2024. The outlet studies Abuelo’s combatted the drop in gross sales via closing underperforming shops and reducing overhead prices.
Abuelo’s operates shops throughout Arizona, Arkansas, Florida, Kansas, Oklahoma, South Carolina and Texas.
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