Bankrupt Mexican restaurant chain reopens locations after mass closures | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

In an era marked by restaurant bankruptcies and mass closures, reopenings have become an increasingly rare bright spot in dark financial times.

This is especially true in the food service industry, which continues to deal with economic uncertainty, rising costs, and shifting consumer behavior, all contributing to one of the most turbulent periods in recent years.

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In 2024 alone, at least 10 major restaurant chains filed for Chapter 11 bankruptcy, including iconic American classics like Red Lobster, TGI Fridays, and Buca di Beppo, highlighting the financial pressures even legacy brands now face.

The U.S. Bureau of Labor Statistics reports that around 17% of new restaurants close within their first year.

However, with established chains now joining the list of ongoing closures, the question arises of whether the risk of failure increases the longer a restaurant brand stays in business.

Del Taco reopens restaurants amid its possible sale.

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Bankruptcies and closures haunt Del Taco’s brand

Jack in the Box (JACK) acquired Del Taco in 2022 for approximately $585 million to expand its portfolio and footprint. But only three years later, the company decided to free itself from the Mexican fast-food brand.

In April, Jack in the Box unveiled its “Jack on Track” initiative, a strategic plan to close up to 200 underperforming restaurants and sell its Del Taco brand and associated real estate. This move aimed to reduce debt and refocus on core operations following disappointing financial results.

At the time of the announcement, Jack in the Box’s same-store sales dropped 4.4% during the second quarter of 2025, with Del Taco’s down 3.6%.

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As if Del Taco didn’t already have enough problems, a major brand franchisee, Matador Restaurant Group, filed for Chapter 11 bankruptcy protection on July 15. The group operates 22 Del Taco locations across Georgia and Alabama.

This comes less than a year after New Port Ventures, a franchisee operating around 18 Del Taco restaurants in Colorado, filed for Chapter 11 bankruptcy last October, leading to the closure of all its locations in February.

Del Taco reopens restaurants following bankruptcy

Aiming for a comeback, Del Taco is reopening 17 company-owned restaurants in Colorado, in a phased rollout that began June 21 and will continue over the coming months. These locations were repurchased from New Port Ventures during its bankruptcy process.

As of late July, five locations have already fully reopened, with 12 more scheduled. However, one restaurant in Aurora will remain permanently closed and is not part of this plan.

Colorado is a key market for Del Taco, especially as its parent company, Jack in the Box, continues to explore a potential sale of the brand. By shifting these locations back under corporate ownership, Del Taco will ensure that the service and food quality maintain high standards and consistency.

Despite the first few restaurants reopening fairly recently, Del Taco says it has already seen positive results.

“We’re thrilled to reestablish our presence in the Denver and Colorado Springs communities that have supported Del Taco for more than two decades,” said Del Taco Interim President Sarah McAloon in a statement. “We’re already seeing an incredible response at the locations that have reopened.”

Since its founding in 1964, Del Taco has grown to nearly 600 restaurants in 17 states, serving Mexican-inspired fast food.