Another BBQ and tacos restaurant files Chapter 11 bankruptcy | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Working with family has its challenges, but family businesses make up a massive portion of the Unites States workforce. These businesses are a critical part of the economy, but they face significant survival struggles.

“From local shops to Fortune 500 companies, family-owned enterprises drive most of the country’s economic activity and employment. This makes their success crucial for overall economic health,” Business Initiative reported.

The numbers are truly impressive:

Family-owned businesses account for 87% of all business tax returns in the U.S., with 32.4 million family businesses
Family firms contribute 54% of private sector GDP ($7.7 trillion) and employ 59% of the private-sector workforce

And family-owned business actually have a fairly decent chance of success.

“The average life span of a family-owned business is 24 years About 40% of U.S. family-owned businesses transition into a second-generation businesses, approximately 13% are passed down successfully to a third generation, while 3% survive to a fourth or beyond,” according to data reported by Cornell’s SC Johnson School of Business.

Restaurants, however, don’t have the same track record.

“A study by two economists at UC Berkeley found that 17% of independently owned full-service restaurant startups failed in their first year. A similar study published in Cornell Hospitality Quarterly found that up to 26% of independent restaurants failed in their first year of operation,” a report from Oregon State shared.

Running a restaurant has never been easy, and current market conditions, which include rising rents and labor costs, keep claiming local favorites that had significant followings.

Mexican chains have been hit very hard by the economy.

Image source&colon; Shutterstock

Burnt BBQ & Tacos files Chapter 11 bankruptcy

Burnt, LLC, operating as Burnt BBQ & Tacos, a restaurant business based in Plano, Texas, specializing in BBQ and taco offerings, has filed for Chapter 11 Subchapter V bankruptcy protection in the Northern District of Texas.

The filing on July 23, 2025, showed that the restaurant had assets of less than $50,000 and liabilities between $100,001-$500,000.

Burnt BBQ & Tacos operates from its principal location at 2929 Custer Road in Plano and has elected to proceed as a small business debtor.

Court documents show the business has fewer than 50 creditors, and the debtor reports that after administrative expenses are paid, no funds will be available for distribution to unsecured creditors.

“Founded in 2020, Burnt BBQ & Tacos is one incredible BBQ joint changing the way you look at BBQ and tacos one dish at a time. We are undeniably authentic, true to flavor, and irresistibly damn good. We take pride in our ability to bring the most unique flavors to BBQ and share them with Plano and surrounding areas,” the company shared on its website.

More Bankruptcy:

Burnt BBQ & Tacos has not shared a funding plan or made it clear whether it plans on continuing to operate. It currently is taking pickup and delivery orders on its website.

The Mexican and BBQ restaurant’s social media has not acknowledged the Chapter 11 filing. Its most-recent post touted one of its rubs that can be purchased online.

“Ready to take your taste buds on a refreshing journey? Our Citrus Rub is here to brighten up your BBQ experience with its zesty, tangy flavors. Perfectly seasoned and absolutely irresistible, it’s a must-try for anyone who loves a little citrus twist in their meal. Swing by Burnt BBQ & Tacos and treat yourself today,” it shared on Facebook.

Mexican restaurants that closed in 2025

Cascabel Mexican Patio (San Antonio, TX): Closed after 22 years on July 22, 2025, due to economic strain, construction disruptions, and parking changes.
MXO (West Hollywood, CA): Upscale Mexican steakhouse closed July 21, 2025, under a year after opening in Sept. 2024.
De Noche (Portland, OR): Small‑plates Pacific Northwest-style Mexican opened in 2022; permanently closed in May 2025 as part of República & Co. reorganization.
La Bartola (Toronto, Canada): Vegan plant‑based Mexican dining operated from June 2020 until closing March 15, 2025.
Fernando’s Mexican Cuisine (Dallas & Richardson, TX): Both locations closed May 18, 2025, after 20 years, due to lease issues.
Guerrilla Tacos (Arts District, Los Angeles): Pioneering Mexican concept by Wes Avila closed January 31, 2025, after 13 years.
La Lupita Mexican Eatery (Richmond, CA): Permanently closed as confirmed in July 2025 report.

These BBQ restaurants closed in 2025

AJ’s Pit Bar‑B‑Q (Denver, CO): Michelin‑recognized, closed in February 2025 after staff walk‑out and PPP fraud charges.
Del Toro BBQ (Mansfield, TX): Central Texas‑style BBQ fusion spot, closed June 23, 2025, as part of group closures by Local Favorite Restaurants.
Gessner’s Grub BBQ (Houston, TX): Closed May 12, 2025; owner cited health issues, military‑related, after operating since 2019.
Smokey Bones Bar & Fire Grill (Roanoke, VA): Valley View Mall location closed July 6, 2025; part of broader closures across the chain.

Up to 30 Smokey Bones restaurants are either closing or converting to Twin Peaks restaurants in 2025.