January 1, Beware: Popular Chain Closes More Locations Amid Struggles

Tex-Mex lovers are losing more options as a popular Mexican chain continues closing its doors. Chuy’s Tex-Mex has shut down its restaurant in the Country Club Plaza in Kansas City, MO. This marks another closure in the chain’s recent streak.

According to The Kansas City Star, a sign on the door stated: “We have permanently closed the location and apologize for any inconvenience. We appreciate all our customers and their loyalty to this Chuy’s for so many years.”

This closure follows two other Chuy’s restaurants in the Kansas City area shutting down in recent years. The latest closure’s reasons remain unclear, and Chuy’s has not yet commented on the development.

This marks the second Chuy’s location to close in 2024, with the Lakewood, CO, outpost closing earlier this year.

Despite these closures, Chuy’s still maintains a strong presence in the United States, with 102 restaurants in operation as of March 31. However, the Kansas City closure brings that number down to 101.

Chuy’s has faced a difficult quarter, with same-store sales dropping by 5.2% year over year and traffic declining by nearly 7%. The company attributed the sales decline to “unfavorable weather conditions and the timing of Easter,” which fell on March 31.

Yet, not all recent news for Chuy’s has been negative. The chain opened a new restaurant in New Braunfels, Texas, during the quarter and another in Austin after the quarter ended on March 31.

Chuy’s plans to open six to eight new units in total this year, showing that the company is selective in its expansion plans given its struggles last quarter.

Steve Hislop, president and CEO of Chuy’s Holdings, said in a statement, “We are pleased with the performance of our new restaurants thus far and remain on track to achieve our restaurant opening goals for the year.”

Chuy’s is not the only chain struggling with closures in 2024. Fast-casual Mexican chain Rubio’s Coastal Grill recently closed 48 California locations before filing for Chapter 11 bankruptcy.

Furthermore, Red Lobster closed nearly 100 restaurants in mid-May before declaring Chapter 11 bankruptcy, with court documents indicating that over 100 more Red Lobster locations may be at risk of closure.

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