A popular taco chain recently closed several restaurants, reflecting a growing trend as the year comes to an end.
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Several Taco Cabana locations across the Houston, Texas area have quietly closed in recent days, a move first noticed by Houston Historic Retail earlier this week.
According to Chron, five locations are listed as permanently closed on Google.
Taco Cabana Closed Nearly a Dozen Locations Back in October
In October, Taco Cabana closed nearly a dozen restaurants in the San Antonio area. Representatives later explained to MySA that the closures were part of a strategic realignment, stating, “As part of our ongoing efforts to strengthen the brand and position it for sustained growth, Taco Cabana has made the strategic decision to close select underperforming locations.”
Taco Cabana’s closures contrast with its plans for national expansion, including a new franchising program and a drive-thru-focused prototype. In October 2024, Taco Cabana announced the launch of its first nationwide franchising program. The company highlighted key target areas, including Arizona, Arkansas, Colorado, Missouri, Oklahoma, and Tennessee.
Of course, the taco chain isn’t alone in closing locations; it’s part of a larger trend in 2025. Other major chains like Jack in the Box, Wahlburgers, and Red Lobster have also closed underperforming restaurants to stabilize their businesses. They face rising food and labor costs, changing consumer habits, and more competition.