Taco Bueno this week closed 16 locations, or nearly 10% of its unit count, as part of a broad review of its restaurants’ performance.
The closed units are in Texas, Oklahoma, Kansas and Missouri. Workers and managers were given the opportunity to transfer to other Taco Bueno locations. The Dallas-based chain had 179 locations before the closures were announced.
“We continually review our restaurant portfolio performance,” CEO Omar Janjua said in a statement. “These closures were a strategic decision based solely on business demands and changing traffic patterns.”
He said the company plans to “reinvest in new locations” and to remodel in other locations.
Janjua was brought on board earlier this year from Krystal, and one of his first tasks was to identify “underperforming business areas and reallocate resources toward more productive pursuits.”
The closures are at least somewhat surprising. The Mexican chain’s system sales rose 5.1% last year, to $200.5 million, according to Technomic data. Average unit volumes increased 2.3% to $1.1 million.
The locations that were closed include two in Arlington, Texas, three in Fort Worth, Texas, and restaurants in North Richland Hills, Dallas, Balch Springs, Granbury and Harker Heights in Texas. Oklahoma restaurants in Oklahoma City, Enid and Norman were closed. One restaurant was closed in Kansas and two in Kansas City, Mo.