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.
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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.