Signs Tijuana Flats Won't Be Around Much Longer

The Tex-Mex scene is a highly competitive one 一 prospective restaurants have to go up against countless local gems in addition to giants like Taco Bell and Chipotle. And in 2024, one lesser-known chain is struggling to compete. If you're in one of the four states with Tijuana Flats locations, you may be dismayed to know that things aren't looking great for the company.

In 1995, a college student by the name of Brian Wheeler decided to jump on the Tex-Mex bandwagon, opening the first Tijuana Flats in Winter Park, Florida. The restaurant chain quickly became a hit, enticing customers with its flavorful Mexican-inspired fare and a laid-back atmosphere featuring vibrant decor. 

The last few years, however, have not been kind to the once-thriving restaurant. Multiple changes at the corporate level, store closures, dismal employee reviews, and even bankruptcy have afflicted the company. Any one of these on its own may suggest trouble, but all together, these signs may just spell the end for Tijuana Flats.

After 20 long years of owning and running Tijuana Flats, founder Brian Wheeler decided to sell the company. In 2015, a private equity firm, AUA Private Equity Partners, acquired Tijuana Flats. Wheeler went on to develop other restaurant chains, including Big Taco, a casual Tex-Mex restaurant that opened in 2023. With Big Taco, Wheeler wanted to return to simple, good food. "When I look at the landscape of Tex-Mex, including the company I sold, I believe most of them over-engineer their food," Wheeler explained (via Restaurant Business). So where did Tijuana Flats go wrong?

After it was sold, Tijuana Flats underwent major changes. According to Wheeler, the menu became overly complicated, and some things were lost in translation. For example, Tijuana Flats used to offer grilled burritos, but this stopped after the acquisition. While this is a minor change, it's indicative of a larger pattern of straying away from what made customers love the restaurant in the first place. 

After a period of financial turmoil, Tijuana Flats was acquired by Flatheads, LLC in April 2024. According to Flatheads, the group saw "immense brand recognition, strong following and customer loyalty, plus future potential" in Tijuana Flats. While it's too early to tell if things will turn around with new ownership, Tijuana Flats remains optimistic that the sale is the beginning of a promising new chapter in its history.

In April 2024, in addition to announcing new ownership, Tijuana Flats filed for Chapter 11 bankruptcy. The company cited a "confluence of adverse events," including ill-thought-out menu changes and increasing operating costs (via Restaurant Business). Tijuana Flats also faced increased financial pressure when, in 2023, its lender demanded a $1.2 million payment on top of the regular payments already owed. According to Tijuana Flats, the bankruptcy filing was a strategic move to restructure the company and prepare for new ownership. At the time of filing, the company had accumulated almost $19 million in secured debt.

While bankruptcy may seem like certain death for a company, this isn't always the case. Unlike Chapter 7 bankruptcy, where the debtor's assets are liquidated, Chapter 11 bankruptcy allows the company to reorganize its assets and debts. The company can stay in business but must follow a court-approved plan. "With this new ownership structure, and a robust strategic plan, we are well-positioned for an emergence in the fast casual space," stated former Tijuana Flats CEO Joe Christina (via Restaurant Dive). Despite this optimism for the future, the company's journey ahead will be a long and difficult one.

When Brian Wheeler left Tijuana Flats in 2015, the restaurant chain had 140 locations. At the start of 2024, there were 131 stores, the majority being corporate-owned locations. However, by April 2024, Tijuana Flats had permanently shuttered 40 restaurants, along with filing for Chapter 11 bankruptcy filing and changing ownership (via Restaurant Business).

Among the stores affected was the first-ever Tijuana Flats location in Winter Park, Florida. The closures only affected corporate-owned restaurants, leaving 26 franchised stores still running in Florida, Tennessee, North Carolina, and Alabama. As of writing, there are 65 corporate restaurants still open, all located in Florida. According to Tijuana Flats, "the decision to close restaurants, though difficult, was a result of a unit-by-unit analysis of financial performance, occupancy costs, and market conditions" (via Jacksonville.com) While the company hasn't announced any closures since April, only time will tell whether the remaining restaurants are safe.

Amid the tumultuous events of April 2024, Tijuana Flats asserted that CEO Joe Christina would stay on and lead the company through its ongoing challenges. Having held the CEO position since 2022, Christina previously served as CEO and president of Church's Texas Chicken.

However, two months after Tijuana Flats declared bankruptcy, the company appointed a new CEO, James Greco. With years of experience in reinvigorating restaurant brands, Greco previously served as CEO of Sbarro and Bruegger's, leading turnaround efforts for those companies. 

In a post on LinkedIn, Tijuana Flats wrote, "We are grateful to have his leadership during this momentous time in our business as we work to unlock the full potential of our brand." The company has not commented on its reasoning for the CEO switch-up, and Joe Christina's continued role at the Tex-Mex chain is currently unclear. The company also hired a new vice president of operations, Ingrid Hebel, former vice president of operations at Red Lobster. Whether new leadership can save Tijuana Flats from restaurant ruin remains to be seen.

Tijuana Flats customers are no stranger to change 一 over the years, the restaurant chain has mixed up and refreshed the menu multiple times. After Wheeler sold the company in 2015, the menu saw a seemingly never-ending series of changes. For instance, the pre-2015 menu featured enchiladas and tostadas, both of which are no longer available. Other items stayed on the menu but were tweaked, much to the chagrin of long-time customers, who have expressed their love for the old recipes on social media.

Other changes sought to expand the menu, as was the case in 2017 when the chain launched its Flat Outrageous line. The new menu introduced Philly Cheesesteak Flautas, Jerk Chicken tacos, Crispy Baja Fish tacos, and more. In 2020, the chain's menu was again redesigned under the guidance of a new executive chef, adding Chicken Tortilla Soup, Loaded Guac, and Chicken Tinga to the mix. 

None of this seemed to stick, for the chain revamped the menu again in 2021 and 2022. However, these new menu options called for more equipment, required more staff, and took longer to prepare, making them a poor investment during a troubled time for the company. With the company's 2024 bankruptcy filing and restructuring, the Tijuana Flats menu is evolving once again. Already, in April, the restaurant released a new menu and packaging, and more changes are likely to come as the company refines its post-bankruptcy strategy.

Tijuana Flats' biggest competitors in the fast casual Tex-Mex space are Chipotle, Qdoba, and Moe's Southwest Grill. All three have a presence in Florida, where the majority of Tijuana Flats restaurants are located. To put it plain and simple, these chains are larger than Tijuana Flats and serve significantly more customers. 

In 2023, Tijuana Flats made $170 million in sales across 124 locations, according to Restaurant Business. In the same year, Chipotle generated over $9 billion in sales with 3,371 U.S. stores. Qdoba, with 747 U.S. locations, made $990 million in sales. Moe's came in third with $731 million in sales across 612 stores. Tijuana Flats can't compare with these Mexican fast-food chains in either size or sales.

Furthermore, the company's systemwide sales only increased by 0.1% (on average) in the last five years. Meanwhile, the average growth for similar fast casual restaurants was 10.5%. Clearly, while Tijuana Flats has been struggling to keep afloat, its competitors have been growing and expanding with ease.

As part of its post-bankruptcy plan, Tijuana Flats will renovate many of its remaining stores in the near future. While specific details have yet to be revealed, Flatheads, the chain's new owner, has promised to improve the in-store experience. As long-time customers may know, this isn't the first time the restaurant chain has committed to such an undertaking. The stores have seen many updates over the years, including minor design changes and complete renovations. For example, in 2016, the chain debuted its "Turnt Up" aesthetic at a new restaurant in Orlando, Florida. This redesign added booths, banquette seating, new tables, and a concrete floor.

In 2021, the company launched another redesign, this time centered around technology. Stores showcased digital menu boards and screens to display order status updates. Additionally, the redesign brought bright decor changes, a new kitchen layout, and an updated hot sauce bar. Though the company planned to remodel more stores in this style, it's unclear whether the 2024 renovations will continue these efforts or start the redesign process from scratch.

According to customer reviews online, Tijuana Flats has been on a downhill trajectory since it was sold to a private equity company in 2015. One former regular, who used to eat at the original Tijuana Flats restaurant in the '90s, expressed disappointment at the decline in food quality over the years. Recent reviews on Yelp backed this up. "Looked good but probably the blandest tacos I've ever had. Absolutely no seasoning," wrote one customer, who added that they preferred Taco Bell. Others criticized the sauces and guacamole for lacking flavor and not tasting homemade.

The amount of food per order was another complaint for some customers. "The portion sizes have gotten so small...I ate here 3 times, and always leave still hungry," said one diner. Some customers received half-filled tacos, burritos that were mostly tortilla, and entrees that skimped on the meat. At their worst, diners were subjected to cold, burnt, and undercooked food, with a few even reporting cases of food poisoning after eating at the restaurant chain. 

In terms of the customer experience, some reviewers found the service to be sub-par. Citing unhelpful employees and missing or messed-up orders, some customers vowed never to return to the chain. While Tijuana Flats' new owner has promised to improve the chain's food quality and consistency issues, these negative reviews certainly don't bode well for the chain's future.

Another gripe customers have with Tijuana Flats is the price. There's a good reason for these complaints 一 in the last decade or so, the chain's prices have more or less doubled. In 2013, for example, a burrito started at $4.79 and an order of two tacos started at $4.99. Today, while prices can vary from store to store, a burrito starts at around $10.69 and two basic tacos cost around $10.49. While it's not unusual for a restaurant to increase its prices over the years, some customers now believe that the quality and quantity of Tijuana Flats' food no longer justifies the higher costs.

Customer review sites such as Yelp show such grievances. One customer, for instance, expressed disappointment at the amount of meat in their steak burrito, especially considering how much they paid. "To top it all off they charged me two dollars for salsa. that is the first time I ever paid for salsa at a Mexican restaurant. I will not be returning," they added. 

Even Tijuana Flats' Taco Tuesdaze deal has seen better days. While you could get you two tacos, tortilla chips, and a drink for $4.99 in 2013, the same deal now costs $6.99, per the company website. With the food quality and portion sizes having taken a dive in recent years, many customers feel that a meal at Tijuana Flats just isn't worth the price tag anymore.

On the other side of the counter, employees are also unhappy at Tijuana Flats. With all the changes and upheaval in the last few years, employees have often received the short end of the stick. In a review on Indeed, one worker wrote, "employees are not given the tools to succeed by corporate, they are always changing procedures and menu items making it confusing for both guests and employees, and many sudden layoffs and budget cuts." While some workers enjoyed the laid-back environment at their stores, other employees called the restaurants chronically understaffed, summing it up as a toxic place to work.

Ultimately, most staff complaints revolve around the low pay. On average, workers rated the chain's compensation and benefits a 2.8 out of 5 on Indeed. "They start you out lower than any other restaurant. No pto or vacation. Can't get over time. Split shifts. You will get sent home early so don't expect to get hours," wrote one disillusioned employee, who urged prospective applicants to look elsewhere for a job.

 Another worker mentioned they were promised a certain number of hours but typically received less than half this amount. With all the store closures this year, Tijuana Flats isn't exactly the most secure place to work. Not to mention, the future of Tijuana flats as a company remains uncertain.