With the increasing cost of food, rent, and everything else, it’s understandable that Americans are being more conscientious of their budgets.
Restaurants took big hits during the pandemic, and now, five years later, many aren’t able to survive the aftershock and are forced to close.
Let’s look at some of these closures in Texas.
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Tex-Mex chain Z’Tejas started its roots in 1989 with its first location in Austin, Texas.
With its made-from-scratch menu, its popularity grew, prompting the opening of 13 more locations at its highest point. The locations were primarily in Arizona and Texas, with some additional locations spread out in California, Utah, and Washington.
After a 36-year run, Z’Tejas came to the end of its time…
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Unfortunately, back-to-back bankruptcy filings in 2015 and 2017 started the decline of the chain. The locations were whittled down to four in 2020, and the last standing location in Kyle, Texas, was officially closed on June 30, 2025.
The owner stated, “After nearly 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’Tejas) — our last remaining outpost.”
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After 34 years in business, the Arlington, Texas, location of Bodacious Bar-B-Q will be closing down early this month.
Founded in 1965, Bodacious Bar-B-Q has locations throughout Texas. Some of these locations are independently owned and will remain open. These locations include Tyler, Kilgore, and Sulphur Springs, Texas.
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Hooters filed for Chapter 11 bankruptcy in March. As a result, over 30 locations throughout the country were shuttered. Three of those locations were in Texas: Grapevine, San Marcos, and Houston, which closed last month.
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The company said this about the bankruptcy filing: “Hooters will be well-positioned to continue our iconic legacy under a pure franchise business model,” the company said. “We are committed to supporting our impacted team members throughout this process and are incredibly grateful to our valued customers for their loyalty and dedication to the Hooters brand.”
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Since February of this year, an astonishing 37 Dairy Queen locations have been closed in Texas alone.
It doesn’t have to do with the company itself, but rather, a single franchise owner who owns all of the impacted locations…
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The lawsuit involves a dispute between Dairy Queen and the franchisee over royalty fees and transfer payments, according to court documents.
Despite these closures, Dairy Queen says Texas still has the most Dairy Queen locations of any other state, which isn’t surprising given it’s the largest state.
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According to its website, On The Border Mexican Grill & Cantina has over 120 locations, but it’s not clear if that’s before or after the mass closure of locations nationwide.
After filing for Chapter 11 bankruptcy protection in March, a significant number of locations were shuttered throughout the country.
Since the bankruptcy filing, 77 locations have been shuttered, and 12 of those were in Texas. There are still two locations open in Texas, however.
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There are several factors precipitating the closure of so many restaurants these days. Increasing labor costs, increased food costs, and changing consumer trends all play into whether or not a restaurant can stay afloat in today’s economy. Many restaurants took financial hits during COVID, and some never recovered.
We’ve seen several big restaurant names file for bankruptcy lately, as well as mass closures among other chains, even without bankruptcy.
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TGI Fridays and Red Lobster had filed for bankruptcy, while many chains have scaled back their locations, including:
- Jack-in-the-Box
- Denny’s
- Wendy’s
- Rubio’s
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Have you noticed an uptick in restaurants closing? How about local restaurants in your area? Share your thoughts and experiences in the comments!
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