The casual-dining chain blamed sales declines, rising costs and staffing challenges for its financial issues.
UPDATE: This story has been updated to include a statement from Abuelo’s.
Another casual-dining chain has filed for bankruptcy.
Abuelo’s, a 16-unit Mexican concept based in Lubbock, Texas, filed for Chapter 11 bankruptcy Tuesday, citing sales declines, rising costs, staffing challenges and changing consumer preferences.
It listed both debts and liabilities of between $10 million and $50 million.
Abuelo’s is owned by Lubbock-based Food Concepts International, which also filed for bankruptcy. The companies have asked the court to combine their cases.
“This decision is a part of a strategic reconstructing process to strengthen our long-term financial position,” Abuelo’s said in a statement. “We will continue normal operations and remain committed to maintaining stability for our employees, vendors and customers. Through this time, our loyal customers can join us and expect the same quality and hospitality as we’ve always provided.”
Founded in 1989 in Amarillo, Abuelo’s offers authentic, scratch-made Mexican food in a slightly upscale atmosphere. Its restaurants feature faux-open air courtyards with fountains, statues and greenery.
Abuelo’s once had as many as 40 locations, but finished last year with just 20, according to Technomic data. Growth stagnated starting around 2009, and worsened following the pandemic. Systemwide sales fell more than 15% last year, per Technomic.
Fallout from the pandemic, including rising costs for food and labor, has made for a difficult operating environment for many restaurants, leading to a crop of bankruptcies in recent years.
Several of them have involved Mexican chains. On the Border, one of the largest Mexican casual-dining chains, filed earlier this year and was acquired by Pappas Restaurants. Limited-service Mexican concepts Rubio’s Coastal Grill and Tijuana Flats also succumbed to bankruptcy.
Source https://www.restaurantbusinessonline.com/financing/abuelos-mexican-chain-files-chapter-11-bankruptcy
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