Popular restaurant chain closes all locations, no bankruptcy

Mexican restaurants have suffered during the post-pandemic period.

Dozens of mom and pop locations have closed their doors. That's partially due to rising costs and partially due to shifting populations.

Places that once did a robust lunch business serving office workers, saw much of that business disappear as companies shifted to work-from-home or hybrid office models.

In other cases, sit-down restaurants saw their business drop as customers opted for cheaper meals at popular chains like Chipotle, or even the bigger trade-down to Taco Bell.

For many Mexican restaurants, it was death by a thousand paper cuts as cost went up across the board while consumers would not absorb price increases,

The entire On the Border chain nearly disappeared before it was rescued by Pappas Restaurant Group. Even then, many of its locations closed and the remaining chain is much smaller than it once was.

In many cases, rising rent has been the final dagger. If a restaurant is just barely turning a profit, it can't afford to pay more in rent.

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That's a fixed cost that gets paid every month no matter what the sales are. Some restaurants close and try to find cheaper locations, but it's not cheap to open a new restaurant even when you own the equipment from a prior location.

Some see the writing on the wall and simply shut down.

Mexican restaurants have been hit especially hard by recent economic conditions.

Image source: Getty Images

Regional Mexican chain has slowly been shedding stores

Z'Tejas has a deep history in Arizona and Texas.

“From our Austin beginnings to our Kyle home, Z’Tejas has always been more than a restaurant — it’s a spirited blend of bold food, heartfelt hospitality, and deep Texas roots that continue to shape who we are,” the company shared on its website.

The chain has over 30 years of history and it grew into a regional powerhouse from modest beginnings.

“Z’Tejas opened its doors in 1989 on Austin’s iconic 6th Street. Today, we carry that legacy forward in Kyle—serving our community with bold Southwestern flavor and genuine Texas hospitality. We’re locally owned, built from scratch, and proud to keep the fire alive with every plate, every pour, and every guest we serve,” the chain boasted.

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The company had a simple operating philosophy.

“We believe great food starts with great ingredients—and a little heat. From our legendary cast-iron cornbread to street corn risotto and sizzling fajitas, our menu is a celebration of bold, vibrant flavor. Everything is crafted to order in our scratch kitchen, with real spice, real care, and no shortcuts,” it added.

Z'Tejas has closed its doors for good

After slowly shedding locations over the past year, the owners of Z'Tejas

“After over three decades of serving communities across Texas and Arizona, it’s time to say goodbye to this chapter. With our lease coming to an end and the challenges of today’s market, we’ve made the very difficult decision to close Z’TeZ’Tejase — our last remaining outpost,” the restaurant shared on its website.

Earlier this year, its owner, Randy Cohen, had expressed interest in selling the business. That did not happen and the chain closed its last location on June 30.

“We are deeply grateful to our guests, neighbors, and friends for your support, your stories, and for making Z’Tejas a part of your lives. It’s been our honor to serve you,” it posted on its website.

The company has not shared news of its closure to its Facebook or Instagram pages.

One of its fans posted a tribute on Yelp when a previous locations closed.

“Well I'm super bummed this location is closing forever today. It was a great place for Happy Hour and meeting up with friends. The bar area was great as was the outdoor patio. I miss the table-side guacamole. Another casualty of Covid. I do hope it makes a comeback at another location. This place is known for their margaritas and they do not disappoint,” wrote Terri J.