With new ownership and restructuring plan in place, Tijuana Flats said this week it has emerged from Chapter 11 bankruptcy.
The 30-year-old brand filed for bankruptcy on April 19 after being sold to an ownership group known as Flatheads LLC. At the time, the Orlando-based chain had shuttered about 40 restaurants, bringing the number of company-owned units to 65. Another 26 are franchised.
In court documents, the company blamed the bankruptcy filing in part on a “confluence of adverse events.” Among them the chain’s then-lender Truist Bank in 2023 had required the company to post $1.2 million in an interest reserve, which cut into needed working capital. (Truist later freed the reserve when the chain fell into default.)
In the two years before that, the chain had tried to boost sales with new menu options, but they required more equipment, staffing and time to prepare. Customers didn’t like the slower service, and the move ended up hurting sales. Margins were also hit by the post-Covid inflationary environment, and attempts to raise prices “had limited success.”
After the bankruptcy filing, however, Tijuana Flats brought in turnaround specialist James Greco, who has been working on the menu and refreshing units, as well as a return to growth.
The company said it has reduced its debt, improved profitability and created a more efficient operation.
“Emerging from Chapter 11 is pivotal for our business,” said Greco, in a statement. “This process positions us to focus on what truly matters—delivering exceptional hospitality, value and flavors to our guests. As a fast-casual Mexican restaurant brand known for its fun, festive atmosphere, we are dedicated to preserving our unique identity while continuing to innovate and meet the evolving needs of our guests and communities.”
Coming soon to the menu, for example, are new Street Tacos. The chain said it has been working with a renowned family-owned Mexican food company—which was not identified— to create authentic recipes.
In addition, some fan favorite items have made a return to the menu. In an Instagram post, the chain said it has been listening to guest feedback and may bring back Mexican rice and pico (de gallo), for example.
Units have also been refreshed to maintain the “fun atmosphere,” but also to appeal more to families, the company said.
The brand is leveraging its Flatheads loyalty program to tailor promotions and emphasize value, with Tijuana Tuesdaze and Throwback Thursdaze offers.
And the plan includes deepening ties to the communities where it operates. Tijuana Flats’ Just in Queso Foundation donated $10,000 to aid Tampa’s recovery from Hurricane Helene last year, for example.
Tijuana Flats operates in Florida, Alabama, North Carolina, Kentucky and Tennessee.
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