Smaller Mexican restaurant chains have faced adversity in 2025, with several struggling establishments closing locations and, in some cases, going out of business.

In most cases, restaurant chains blamed similar reasons for shutting down locations or their whole business, including the rising cost of labor and products, a decline in customer traffic and sales, and lease rates that no longer make sense.

Mexican restaurant chains close locations

Matteo’s Authentic Mexican Food closed all four of its restaurants in Texas on Nov. 10, asserting that “the rising cost of inventory, decline in sales and our commitment to using only high-quality ingredients have made it impossible to continue operations,” the owners said, according to KTSM-TV in El Paso, Texas.

Session Taco operates five Mexican restaurants in the St. Louis and Kansas City, Mo. metro areas, after closing or rebranding four locations since expanding to as many as nine locations by 2022, St. Louis Business Journal reported.

A much larger Mexican restaurant chain, Taco Cabana, which operated 146 restaurants in New Mexico and Texas, closed five underperforming locations in September 2025, Nation’s Restaurant News reported.

Monterey House closes its Beaumont, Texas, restaurant after 62 years in business.

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Monterey House closes down after 62 years in business

70-year-old Mexican casual-dining chain Monterey House is closing one of its last restaurants, as its Beaumont, Texas, location will shutter permanently on New Year’s Eve.

Monterey House in Beaumont, which opened in 1963 when the chain was eight years old, revealed on its Facebook page that its last day in business would be Dec. 31.

More closings:

• Casual Mexican restaurant chain closes more locations
• 79-year-old national trucking company closes down, no bankruptcy
• 65-year-old Home Depot rival shutters business permanently

The restaurant’s owners did not indicate a reason for closing the restaurant, though it was likely retirement-related, as owner Pris LeJeune said age played a big factor in her decision to close the restaurant, KBMT-TV 12 in Beaumont reported.

The 62-year-old Tex-Mex franchise was considered by a newspaper when it opened to be a novelty that would soon close, the franchisee wrote on the Facebook post, but it proved the paper wrong.

“Looking back on our history in Beaumont, we are proud to have been a staple of this community for over half a century,” the restaurant’s owners said in their Facebook post.

“We are thankful for the friendships we have made along the way with our customers and staff, and hope each of these people will hold fond memories of their time at the Monterey House, as we will hold close the memories of our time with them,” the Facebook post said.

Monterey House still operates location in Texas

As the Beaumont Monterey House closes, another fairly new location, which another owner opened in July 2024, continues to operate in Dickinson, Texas.

The Monterey House Mexican chain was founded in 1955 in Houston, and by its 30th anniversary in 1984, it had 75 locations in three states, according to a report from ABC13.

The Mexican restaurant chain filed for Chapter 11 bankruptcy in 1986 and was sold in 1987. The chain was rebranded as Monterey’s Tex-Mex Cafe in 1989, Cheesepedia reported.

Restaurant changes its name twice

The chain was reduced from about 58 locations to 26 by the time it was sold again in January 1994, Fandom reported, and the chain was renamed again as Monterey’s Little Mexico, but a few restaurants maintained the Monterey House brand.

The chain continues operating five Monterey’s Little Mexico locations in Houston, Alvin, Grand Prairie, and Humble, Texas, and one in Tulsa, Okla., according to its website.

Monterey’s Little Mexico locations:

• Houston: 12520 Greenspoint Drive
• Alvin, Texas: 410 Gordon Street
• Grand Prairie, Texas : 602 Dalworth Street
• Humble, Texas: 270 W. 1st Street
• Tulsa, Okla.: 1737 South Sheridan Road

Monterey House in Beaumont’s menu includes beef, chicken, cheese, and guacamole tacos; beef, chicken, and cheese enchiladas; various beef, chicken, chili, and bean burritos; beef and bean chalupas; beef and chicken flautas; tamales; tostadas; chimichangas; quesadillas; Mexican pizzas; and taco salads.

The restaurant also offers an “American” menu, featuring chicken-fried steak, hamburger and fries, hot dog and fries, and marinated chicken breast.

Monterey House menu items

• Beef, chicken, cheese, and guacamole tacos
• Beef, chicken, and cheese enchiladas
• Various beef, chicken, chili, and bean burritos
• Beef and bean chalupas
• Beef and chicken flautas
• Tamales
• Tostadas
• Chimichangas
• Quesadillas
• Mexican pizzas
• Taco salads
• Chicken-fried steak,
• Hamburger and fries
• Hot dog and fries
• Marinated chicken breast

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