Popular Mexican Chain Closing All Restaurants, No Bankruptcy

The only industry that's had a harder time than the retail industry over the past several years is the dining industry. 

Running a restaurant is a notoriously hard business, and the pressures from 2020 have had lasting effects on the industry. 

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The early part of 2020 saw the closure of nearly every in-person business across the country for at least some period of time. 

And not all of them made it through. The American Bankruptcy Institute estimates about 60% of businesses that closed during Covid never reopened.

Many retailers tried to survive by moving operations online.

But things were especially hard for restaurants, many of which rely almost exclusively on in-person dining to turn a profit. 

Some attempted to adapt by offering takeaway options, but this transition was cumbersome and hard to scale up quickly. 

Plus, that tactic only worked for restaurants that were popular before the pandemic. 

If a restaurant had just been starting out and trying to make a name for itself, or if business had been sliding in the wrong direction pre-Covid, convincing customers to go out of their way and order takeout (which can be a hard sell in the best of times) was a recipe for trouble. 

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Dining industry is challenging

It's estimated that nearly 20% of restaurants fail within their first year of business. 

That number balloons to about 50% by the five-year mark. So next time you go into your favorite longstanding, independently run restaurant downtown, give them a big congratulations. They beat the odds. 

It's not hard to understand why restaurants have such a tough time. 

More closings:

• Iconic ice cream chain unexpectedly closing locations
• Struggling auto parts chain closing down all stores but one
• Another discount retailer closing over 1,000 stores
• Iconic retail chain closing nearly 500 stores

The cost to start one up can be astronomical; you'd need to invest in a high-foot traffic (and probably pricey) area up front. You'd also need to sink money into all the necessary materials, appliances, and renovations. 

Once the place is up and running, the cost of maintaining a restaurant can be costly. 

High rents, utilities, the cost of food (a lot of which can go to waste and is highly perishable), and labor can put a dent in profits. 

Beloved Mexican chain closing down

So while it's a sad occurrence, it's never really surprising when a dining locale shuts down. 

That's what's happening with Fernando's Mexican Cuisine, an upscale Texas-based chain known for its nachos, fajitas, and margaritas. 

After over 20 years in business, however, Fernando's made the difficult decision to close both its locations in the Dallas area.

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"With extraordinary sadness, we share news that after 20 wonderful years, Fernando’s Mexican Cuisine will be closing both of its locations on May 18th," Fernando's Managing Partner Anne Cowden wrote. 

"After 20 years of operations and five months of lease negotiations at our Dallas location, we were unable to reach a lease agreement with the landlord. With the Richardson lease also expiring soon, this is the appropriate time to close both restaurants."

Fernando's will serve its last meals on Sunday, May 18, 2025.