All NewsDecember 11, 2025

17-year-old Mexican chain closes most restaurants after ICE raids

Another long-standing Mexican restaurant chain has closed nearly all of its locations, bringing to a halt years of family dinners, weekly happy hours, and a loyal customer base. Due to an unexpected event, a more severe crisis has now affected the business: the sudden loss of many employees.

Mexican restaurants across the U.S. have been struggling with rising labor and food costs fueled by inflation, higher interest rates on their debt obligations, and more cautious consumer spending. This beloved Arizona chain was no exception.

Founded in 2008 by two brothers as a single restaurant in Tucson, the Mexican restaurant chain is known for its authentic Sonoran- and Tampico-style Mexican cuisine, with a focus on seafood dishes. It has also become a popular hangout spot due to its wide range of Michelada drinks and fun cocktails.

However, after 17 years of building a strong community across Arizona and Mexico, its future is now uncertain, not only because of the economic challenges facing the broader industry, but also due to far more serious legal issues.

Taco Giro closes most locations after ICE raids

Taco Giro has confirmed that seven of its restaurants will remain closed until further notice. The sudden closures follow multiple ICE raids across various locations, in which 46 kitchen workers, making up 10% of its staff, were arrested on December 5, as reported by KGUN9.

After the raids occurred, Taco Giro closed all nine of its Arizona restaurants while keeping its Mexico location open, all of which are still listed on its website. The chain also took to its social media platforms, posting updates in both English and Spanish to notify customers of the shutdowns.

“Our restaurant will be temporarily closed while we take a short pause to make a few necessary adjustments so we can continue offering the warm service and unique flavors you love,” wrote Taco Giro in a social media post. “We’ll be ready to welcome you back very soon with the same love, passion, and flavors that always make you feel at home.”

Since then, Taco Giro has slowly reopened its locations, with three currently operating. The chain has also revealed that it may close two additional underperforming restaurants, which were already part of its plans before the raids.

Below are all the current statuses of Taco Giro location, according to Google Maps as of December 10.

Status of Taco Giro restaurants

Taco Giro closes most restaurants after ICE raids.

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Why Taco Giro employees were arrested

According to ICE, the raids were part of a multiyear investigation into labor exploitation, tax violations, and immigration violations. Sixteen warrants were executed across nine restaurants and seven related stash houses in Tucson, carried out with the assistance of local agencies in Cochise County and Sierra Vista.

“This multiyear investigation that targeted TCOs alleged to be involved in human smuggling, human trafficking derived from peonage resulted in the shutdown of the restaurants,” said Special Agent in Charge Ray Rede.

“This agency will not stand for it and those seeking to continue such practices are on notice — there will be more enforcement operations in Arizona.”

Cesar Rodriguez, Taco Giro’s director of operations, told the Tucson Sentinel that employees were required to provide a copy of their identification and complete all state and federal tax forms, including the I-9 employment verification document, at the time of hiring.

Rodriguez also disputed ICE’s allegations and added that he does not know the whereabouts of the arrested workers.

“The accusation is they were paying the employees that were undocumented cash under the table,” said Rodriguez to Tucson Sentinel. “There were a lot of false allegations that we were drug smuggling and child trafficking. It was just ridiculous.”

Restaurant industry struggles with mass closures

While Taco Giro’s closures are tied to legal troubles, the restaurant industry is still a tricky business.

The U.S. Bureau of Labor Statistics reports that about 17% of new restaurants close within their first year. Long-term survival is even more challenging, with approximately half of restaurants closing within five years and only 34.6% surviving past 10, according to Oysterlink.

Additionally, food service traffic dropped by 1% in the quarter ending June 2025, according to Circana.

“Small businesses may find it difficult to operate during challenging economic conditions. Exit rates typically decrease with firm age and cash liquidity, which can help businesses withstand downturns. Historically, the median life expectancy for small businesses has hovered around five years,” according to JPMorganChase analysts.

More Restaurant Closures:

However, there’s hope for Taco Giro to make a full comeback.

Mexican restaurants, in particular, are surging in popularity in the U.S. IBISWorld forecasts that the industry’s revenue will reach $96.4 billion by 2025, with an annual growth rate of 4.7% over the past five years.

“Mexican restaurants are beloved for their vibrant flavors, affordability, and cultural authenticity. Many restaurants in the country — from New York to Arizona — capitalize on the demand for customizable, flavorful dishes,” said Restroworks Head of Marketing & Corporate Communications Nikunj Kewalramani. 

“The presence of a growing Hispanic and Mexican American population has also fueled the demand for more authentic and more expensive Mexican restaurants, expanding the appeal beyond fast casual formats.”

Related: 65-year-old fast-food chain sues major operator after closures