Latest news with #Z'Tejas
Miami Herald
04-07-2025
- Business
- Miami Herald
Iconic Restaurant Chain Closes All Locations: ‘Time to Say Goodbye'
Southwestern Tex-Mex chain Z'Tejas said it is closing its final location, ending over 30 years of business across Texas and Arizona. The closing of this once-iconic regional chain reflects broader challenges facing the restaurant industry due to rising costs and changed consumer habits following the COVID-19 pandemic. Several other American chains, including Denny's, Applebee's, TGI Fridays and Red Lobster have closed dozens of branches or filed for bankruptcy within the last year. The Austin-born chain Z'Tejas has faced troubles in recent years, having filed for bankruptcy twice. It started to close locations in 2017. Its final four locations, two in Texas and two in Arizona, began closing in recent months. Z'Tejas announced the closure of its final location in Kyle, Texas, as of June 30. The restaurant chain wrote on its website: "After nearly three decades of serving communities across Texas and Arizona, it's time to say goodbye to this chapter. With our lease coming to an end and the challenges of today's market, we've made the very difficult decision to close [Z'Tejas]-our last remaining outpost." Z'Tejas was bought out of bankruptcy in 2018 by investors Michael Stone and Randy Cohen. In recent months, Cohen, who is now the sole owner, said he was seeking to sell off the chain's remaining four locations to focus on other ventures. "I'm not a restaurateur at the end," he told the Austin Business Journal. "This was a labor of love to make sure we didn't lose another restaurant soldier that's out there during these tough times." He said that Austin has "a crowded restaurant scene and a lot of people are going away because the economy is a little rougher. People are hurting and can't afford to take a family out for $150 for four people." "We still are a value-driven restaurant. Somewhere, obviously way above Chili's, but way under some of the other places," he said. It's thought as of January that the business could be sold for between $10 million and $12 million. The original Z'Tejas opened on Austin's famous Sixth Street in 1989, and that branch was closed in 2023. Its menu, which featured a blend of Mexican and Texan cuisine, included signature items such as cornbread, street corn risotto and fajitas. Z'Tejas said in a statement on its website: "We are deeply grateful to our guests, neighbors, and friends for your support, your stories, and for making Z'Tejas a part of your lives. It's been our honor to serve you." With the closure of the final location, the chain is no longer in business. Related Articles National Burrito Day 2018: Where To Score The Most Delicious Deals 2025 NEWSWEEK DIGITAL LLC.
Newsweek
04-07-2025
- Business
- Newsweek
Iconic Restaurant Chain Closes All Locations: 'Time to Say Goodbye'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Southwestern Tex-Mex chain Z'Tejas said it is closing its final location, ending over 30 years of business across Texas and Arizona. Why It Matters The closing of this once-iconic regional chain reflects broader challenges facing the restaurant industry due to rising costs and changed consumer habits following the COVID-19 pandemic. Several other American chains, including Denny's, Applebee's, TGI Fridays and Red Lobster have closed dozens of branches or filed for bankruptcy within the last year. What To Know The Austin-born chain Z'Tejas has faced troubles in recent years, having filed for bankruptcy twice. It started to close locations in 2017. Its final four locations, two in Texas and two in Arizona, began closing in recent months. Z'Tejas announced the closure of its final location in Kyle, Texas, as of June 30. A photo showing a stock image of tortillas. Tex-Mex chain Z'Tejas said it is closing its final location in Texas. A photo showing a stock image of tortillas. Tex-Mex chain Z'Tejas said it is closing its final location in Texas. Getty Images The restaurant chain wrote on its website: "After nearly three decades of serving communities across Texas and Arizona, it's time to say goodbye to this chapter. With our lease coming to an end and the challenges of today's market, we've made the very difficult decision to close [Z'Tejas]—our last remaining outpost." Z'Tejas was bought out of bankruptcy in 2018 by investors Michael Stone and Randy Cohen. In recent months, Cohen, who is now the sole owner, said he was seeking to sell off the chain's remaining four locations to focus on other ventures. "I'm not a restaurateur at the end," he told the Austin Business Journal. "This was a labor of love to make sure we didn't lose another restaurant soldier that's out there during these tough times." He said that Austin has "a crowded restaurant scene and a lot of people are going away because the economy is a little rougher. People are hurting and can't afford to take a family out for $150 for four people." "We still are a value-driven restaurant. Somewhere, obviously way above Chili's, but way under some of the other places," he said. It's thought as of January that the business could be sold for between $10 million and $12 million. The original Z'Tejas opened on Austin's famous Sixth Street in 1989, and that branch was closed in 2023. Its menu, which featured a blend of Mexican and Texan cuisine, included signature items such as cornbread, street corn risotto and fajitas. What People Are Saying Z'Tejas said in a statement on its website: "We are deeply grateful to our guests, neighbors, and friends for your support, your stories, and for making Z'Tejas a part of your lives. It's been our honor to serve you." What Happens Next With the closure of the final location, the chain is no longer in business.
Miami Herald
03-07-2025
- Business
- Miami Herald
Popular restaurant chain closes all locations, no bankruptcy
Mexican restaurants have suffered during the post-pandemic period. Dozens of mom and pop locations have closed their doors. That's partially due to rising costs and partially due to shifting populations. Related: Iconic pizza chain's franchisees shut down restaurants Places that once did a robust lunch business serving office workers, saw much of that business disappear as companies shifted to work-from-home or hybrid office models. In other cases, sit-down restaurants saw their business drop as customers opted for cheaper meals at popular chains like Chipotle, or even the bigger trade-down to Taco Bell. For many Mexican restaurants, it was death by a thousand paper cuts as cost went up across the board while consumers would not absorb price increases, The entire On the Border chain nearly disappeared before it was rescued by Pappas Restaurant Group. Even then, many of its locations closed and the remaining chain is much smaller than it once was. In many cases, rising rent has been the final dagger. If a restaurant is just barely turning a profit, it can't afford to pay more in rent. Don't miss the move: Subscribe to TheStreet's free daily newsletter That's a fixed cost that gets paid every month no matter what the sales are. Some restaurants close and try to find cheaper locations, but it's not cheap to open a new restaurant even when you own the equipment from a prior location. Some see the writing on the wall and simply shut down. Z'Tejas has a deep history in Arizona and Texas. "From our Austin beginnings to our Kyle home, Z'Tejas has always been more than a restaurant - it's a spirited blend of bold food, heartfelt hospitality, and deep Texas roots that continue to shape who we are," the company shared on its website. The chain has over 30 years of history and it grew into a regional powerhouse from modest beginnings. "Z'Tejas opened its doors in 1989 on Austin's iconic 6th Street. Today, we carry that legacy forward in Kyle-serving our community with bold Southwestern flavor and genuine Texas hospitality. We're locally owned, built from scratch, and proud to keep the fire alive with every plate, every pour, and every guest we serve," the chain boasted. More bankruptcy: Iconic auto repair chain franchise files Chapter 11 bankruptcyPopular beer brand closes down and files Chapter 7 bankruptcyPopular vodka and gin brand files for Chapter 11 bankruptcy The company had a simple operating philosophy. "We believe great food starts with great ingredients-and a little heat. From our legendary cast-iron cornbread to street corn risotto and sizzling fajitas, our menu is a celebration of bold, vibrant flavor. Everything is crafted to order in our scratch kitchen, with real spice, real care, and no shortcuts," it added. After slowly shedding locations over the past year, the owners of Z'Tejas "After over three decades of serving communities across Texas and Arizona, it's time to say goodbye to this chapter. With our lease coming to an end and the challenges of today's market, we've made the very difficult decision to close Z'TeZ'Tejase - our last remaining outpost," the restaurant shared on its website. Earlier this year, its owner, Randy Cohen, had expressed interest in selling the business. That did not happen and the chain closed its last location on June 30. "We are deeply grateful to our guests, neighbors, and friends for your support, your stories, and for making Z'Tejas a part of your lives. It's been our honor to serve you," it posted on its website. The company has not shared news of its closure to its Facebook or Instagram pages. Related: Starbucks' huge new rival opens first US stores One of its fans posted a tribute on Yelp when a previous locations closed. "Well I'm super bummed this location is closing forever today. It was a great place for Happy Hour and meeting up with friends. The bar area was great as was the outdoor patio. I miss the table-side guacamole. Another casualty of Covid. I do hope it makes a comeback at another location. This place is known for their margaritas and they do not disappoint," wrote Terri J. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
