Beloved regional Mexican restaurant abruptly closes all locations | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

It’s always disappointing to see a favorite restaurant close down, a place that offers comfort as much as great food. Sadly, that’s happening across the country.

The U.S. restaurant industry’s sales forecast has “dampened,” with 2025 revenues expected to reach $478 billion, up just 2.8% from 2024 — the smallest annual increase in a decade outside the 2020 Covid pandemic slump, according to a report from Technomic.

Categories struggling the most include burgers, sandwiches, and pizza. And while Mexican-themed restaurants are outperforming the broader market with an expected 6.2% growth this year, some are still succumbing to rising costs and economic pressure, including one popular regional chain that has now shut down entirely.

Matteo’s Authentic Mexican Food confirmed sudden closure of all four locations.

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Matteo’s Authentic Mexican Food closing all locations

Matteo’s Authentic Mexican Food is closing all four of its locations in the Chihuahuan Desert region of the Southwestern United States, reported KTSM.

The regional restaurant’s ownership group had four locations: one in El Paso, a major Texas city on the Mexico border; two in Las Cruces, New Mexico’s second-largest city and home to New Mexico State University; and one in Alamogordo, a smaller city known for its proximity to White Sands National Park.

Matteo’s owners announced the closure in an emotional Facebook post on Nov. 10, citing economic difficulties to sustain the high-quality operations.

“To our beloved community, it is with heavy hearts that we announce the difficult decision to cease operations at all four of our locations. Despite our best efforts over the past few years to adapt and sustain the business, 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 confirmed that the decision was sudden, and thanked the community for all the years they supported it, sharing hope it would come back again.

“This decision was neither planned nor easy to make. We are deeply grateful for the love and support we’ve received from our wonderful communities in Las Cruces, El Paso, and Alamogordo. We truly hope that, in the future, we can regroup and return stronger than ever. Thank you for being an important part of our journey.”

Matteo’s Authentic Mexican Food locations:

Matteo’s Mexican Food – El Paso, at 6450 N. Desert Blvd, El Paso, TX
Matteo’s Mexican Food – University, at 1001 E. University Ave, Las Cruces, NM
Matteo’s Mexican Food – Downtown, at 138 S. Main St., Las Cruces, NM
Matteo’s Mexican Food – Alamogordo, at 423 White Sands Blvd. A Alamogordo, NM

From food truck to 4 restaurants: the story of Matteo’s Authentic Mexican Food

It all started in 2018, when two brothers from Juarez and the identical twin sisters from Las Cruces whom they married united on a shared dream to own a nice restaurant one day. Matteo’s Authentic Mexican Food’s beginning was actually a food truck, reported The NMSU Round UP.

“The home-grown recipes and agua frescas quickly became a gastronomical hit, and after about a year the business evolved into a brick-and-mortar on University Avenue near the New Mexico State University campus,” writes Kiss FM.

Brothers Sergio and Hugo Rios and sisters Melody and Michelle named the restaurant Mateo, after Melody and Hugo’s son.

It took them nine months working a food truck to be able to open the restaurant. And when they opened, they continued to focus on the food quality and service, writes Jensen Stell for the NMSU Round Up. Stell visited the restaurant in the University Park District of Las Cruces six years ago, talking to guests and sharing experiences.

“I always really like the aguas frescas, personally. I think those are really good,” Alexandra Palacios, a Matteo’s customer since the food truck days, said.

At the entrance, guests would be welcomed by one of the owners, Michelle Rios. Besides high-quality ingredients and carefully prepared in-house meals and drinks, the owners paid special attention to customer service.

“This is a place, especially for students [at NMSU] where they could come and not only be fed physically, but also emotionally and feel good,” Rios said.

Economic headwinds have killed many other restaurants in 2025

To say that this has not been a great year for the restaurant businesses would be an understatement. In fact, the hospitality sector is not the only one affected by major economic headwinds.

Many retailers are dealing with similar challenges including rising labor costs driven by inflation, aggressive competition, and shifts in consumer behavior. For restaurants already weakened by Covid lockdowns, there’s another challenge: rising food prices.

Changes in consumer behavior, particularly the fact that consumers are dining out less, is completely understandable, since eating at a restaurant became 3.8% more expensive in May 2025 compared to 2024, according to data from the U.S. Department of Agriculture.

Major non-Mexican restaurant chains that closed or downsized in 2025 include:

Bahama Breeze: Closed 15 of its locations in May 2025.
Joe’s Crab Shack: The chain used to have nearly 150 restaurants nationwide and now has under 20.
Bar Louie: Filed for Chapter 11 bankruptcy in March 2025.
Patti Ann’s: Closed in 2025.
Denny’s: Continues closing restaurants and downsizing.
Hooters: Filed for bankruptcy in April 2025.

Mexican restaurants that closed or significantly downsized in 2025:

Fernando’s Mexican Cuisine: Closed both of its locations in May 2025.
Quesadilla Gorilla: Announced it will close two locations in November and December 2025.
Taco Cabana: The 47-year-old Mexican fast-casual chain recently closed underperforming locations.
Del Taco: Franchisee in Colorado closed 18 locations in February 2025.
Abuelo’s: Recently filed for Chapter 11.
Salty Iguana:Closed all of its restaurant locations in February 2025.
On The Border Mexican Grill & Cantina: Filed for Chapter 11 in March 2025.

Customers are disappointed with Matteo’s Authentic Mexican Food closure

Customers praised Matteo’s food for its authenticity.

Menu items included traditional favorites and unique creations, from “must-try Brisket Fridays and Saturdays for meat lovers” to aguas frescas, tacos, enchilada plates, and carne asada fries. The restaurant chain had an average 4 out of 5 stars rating on Yelp.

Hearing the news about the closure, some longtime customers commented on Facebook, sharing their disappointment.

“Oh, my dear friend, sending you lots of love and prayers. You all did such an incredible job serving the community with the most amazing, delicious food and received us all with so much kindness,” wrote Denice Vizcaino.

Several users suggested that the chain try to keep at least one location, while others told the owners about their favorite food and how they will be missed. Some longtime customers even remembered Matteo’s food-truck days.

Jennifer Serrano wrote: “Nooo, i love your food…it takes me back home in one spoonful. I wish i could go eat it one more time before you close….Please come back soon. We love you.”

Many guests wished the owners good luck, while noting that they will be hard to replace.

Rikki Medina said, “You will be missed everything on the menu was exquisite and yummy…. I loved your aguas frescas and your champurado this time of the season…blessings.”