'Iconic' chain restaurant and Chipotle rival with 125 locations files for bankruptcy and closes store doors for good | VW02YN9 | 2024-04-24 17:08:01
A TEX-MEX chain has filed for bankruptcy and shut 11 of its restaurants this week.
Tijuana Flats, the Florida-based company and Chipotle rival, announced the shock changes after it was recently sold to a new ownership group.
The new owners, Flatheads, LLC, said they planned to make drastic adjustments to improve the store and customer experience, according to a news release.
Tijuana Flats was previously owned by TJF USA, LLC, and had over 125 locations across the South, according to the company's website.
CEO Joe Christina said these measures were made to ensure the long-term future of the company.
"Our company is excited by the new ownership group's plan to reinvest, focus, and emphasize the things that originally brought so many people to love Tijuana Flats," Christina said.
"We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand."
The company explained that several factors were considered when they chose which 11 locations were to close.
These points were financial performance, occupancy costs, and market conditions of each unit.
The company did not share which 11 locations had been chosen to go for good.
Tijuana Flats was founded nearly 30 years ago and has locations in Florida, North Carolina, Tennessee, Alabama, and Virginia.
These have not been the only changes the restaurant chain has made this month.
<!-- End of Brightcove Player --> Tijuana Flats introduced a new menu that was rolled out on April 1.
The restaurants also started to use new take-out and delivery packaging that was designed to improve delivery times and the food.
Tijuana Flats also confirmed that it would not change its CEO.
"Since joining the brand, I have been committed to leading with a vision to serve every guest the most flavorful Tex-Mex food and provide the best guest experience in the country," CEO Christina said.
<p class="article__content--intro"> Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay. </p> </div> </div> MONEY WOES
Tijuana Flats may not be the only chain to file for bankruptcy this year as financial woes have hit a household name.
Red Lobster is reportedly considering filing for Chapter 11 bankruptcy, The U.S. Sun has previously reported.
The move would allow the chain to stay open while it figures out its reported financial struggles from leases, contracts, and wage costs.
Red Lobster was said to have lost $11 million last year from its Endless Shrimp promotion.
Another restaurant chain has also faced several closures in recent months, The U.S. has previously reported.
Cracker Barrel has shut down four of its spots on different sides of the country.
These include locations in California, South Carolina, Tennessee, and Oregon.
Tijuana Flats has also filed for bankruptcy since it was taken over by new owners (stock image)[/caption]
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