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A Central Florida Tex-Mex restaurant chain that has locations in four southeastern states has filed for Chapter 11 bankruptcy after closing 11 locations.
Tijuana Flats, whose first location was opened in Winter Park, Florida, by founder Brian Wheeler in 1995, made the announcement of new ownership “with a plan of revitalizing its restaurants and reinvigorating the customer experience.”
Wheeler’s involvement with the company ended in 2015 when he sold it to a private equity group, he told FOX Business in a statement.
“I had confidence in the new management’s capability and resources to further elevate the brand,” Wheeler said, adding at the time of sale the company’s footprint consisted of 140 locations across five states with 3,000 employees. “It’s truly heartbreaking to witness the careers and livelihoods of so many dedicated individuals affected by the unforeseen downturn of something I had devoted the majority of my life.”
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A waitress serving food at Tex-Mex food in Tijuana Flats. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
The company’s new ownership group is Flatheads, LLC. It was previously owned by TJF USA, LLC.
“Our company is excited by the new ownership group’s plan to reinvest, focus, and emphasize the things that originally brought so many people to love Tijuana Flats,” CEO Joe Christina, who joined the brand in November 2022, said in a press release. “We understand the immediate financial actions taken by them to ensure the long-term health of this great and iconic brand.”
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A Mexican style pizza from Tex-Mex food in Tijuana Flats. (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Financial restructuring plans started in November 2023, when the company considered options that included a potential sale. The locations determined for closure were “a result of a unit-by-unit analysis of financial performance, occupancy costs, and market conditions.”
Tijuana Flats locations can be found in Florida, North Carolina, Alabama and Tennessee. It is known for its fast-casual style, offering specials on Tuesdays, Thursdays and Saturdays. Restaurants also offer a line of hot sauces for their burritos, tacos, quesadillas, burrito bowls and more.
The company did not say which 11 restaurants closed, but it will continue to provide support to franchisees and the remaining locations will continue to operate as usual. There are 65 company-owned locations throughout Florida, and 26 franchised restaurants in all four states Tijuana Flats operates.
Tijuana Flats location in Winter Park, Florida. (Google Maps / Google Maps)
On April 1, Tijuana Flats rolled out a new menu with new packaging for take-out and delivery orders. Court documents obtained by Restuarant Business magazine say menu changes in 2021 in hopes of boosting sales had an “opposite effect,” and the company blames rising food and labor costs.
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Wheeler says Tijuana Flats’ downturn happened after his departure, due to “significant changes that diverged from its original vision and culture.”
“It’s deeply disappointing to witness the decline of a brand that was built with so much passion and dedication. However, the decisions made post-sale were out of my hands, and it’s unfortunate to see the outcome of those choices,” he said. The restaurateur is focusing on his new Tex-Mex restaurant called Big Taco in Casselberry, a venture set out between him and his sons Jake and Gavin in November 2023.
In addition to Big Taco, Wheeler owns Tibby’s New Orleans Kitchen, which operates three full-service restaurants located in Altamonte Springs, Brandon and Winter Park.
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