Tijuana Flats Files For Bankruptcy, Closed 11 Restaurants This Week!

Tijuana Flats, the popular Tex-Mex restaurant, has hit a rough patch and declared bankruptcy. But there’s a silver lining – it’s getting new owners! Let’s dig in to find out what’s going on with our favorite spot for tasty tacos and spicy salsa.

Tijuana Flats Files For Bankruptcy

According to a press announcement from the company, Tijuana Flats closed 11 restaurants this week and filed for Chapter 11 bankruptcy protection on Friday.

Furthermore, the chain was purchased by Flatheads, a new ownership group, from TJF USA. According to the press release, Flatheads seeks to maintain the company’s “strong following, enormous brand recognition, and customer loyalty.”

With decreased franchise and royalty fees offered to operators who signed a development agreement by December 1, 2023, the chain attempted to speed the growth of Tijuana Flats franchises last year. However, the ownership changes may be a setback for this endeavor.

Tijuana Flats launched an ambitious expansion strategy last year, aiming to add 50 outlets by 2025. The company will keep moving forward with its franchise growth, and three to four more franchised restaurants will be opening this year.

The company will keep building its brand and searching for new opportunities. According to the news statement, the chain now has 26 franchised restaurants and 65 corporately owned locations.

The sale and the intent to file for Chapter 11 were components of a November-starting strategic assessment. The corporation reported having 1 to 49 creditors, obligations ranging from $100,001 to $500,000, and assets between $0 and $50,000 in its Chapter 11 filing.

According to the press statement, a unit-by-unit study of financial performance, occupancy expenses, and market conditions led to the decision to close restaurants. Tijuana Flats will keep providing support to its franchisees, and work as usual will continue at the remaining sites.

Joe Christina, the restaurant’s current CEO who started in November 2022, will continue in that role despite the ownership shift.

According to a press release, the company introduced a new menu and packaging on April 1 for takeout and delivery that will “enhance the product and improve delivery times to its customers.”

In order to involve customers more in the menu creation process, the chain also relocated its test kitchen from its corporate support center to a recently opened restaurant in Florida late last year.

The in-store experience, food consistency, dish size, speed of service, and quality standards will all be improved, according to Flatheads. The new owner intends to repair numerous Tijuana Flats outlets to modernize the eateries.

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