After two decades of serving upscale Tex-Mex, the end arrives for Fernando’s Mexican Cuisine.
Fernando’s Mexican Cuisine, a Texas-based chain known for refined nachos, fajitas, and margaritas, is officially shutting down both its Dallas-area locations. This decision comes after 20 years of service and has surprised many longtime customers who appreciated the chain’s more sophisticated approach to Tex-Mex fare.
In a statement, Managing Partner Anne Cowden explained that the closures will take effect on May 18, 2025. She cited lease negotiation issues at the Dallas location and an expiring lease in Richardson as key factors prompting this tough decision. Despite the closures, no bankruptcy filing is involved, and the restaurant will serve its last meals on Sunday, May 18.
Challenging times for restaurants since 2020 have led to numerous permanent closures
The early months of 2020 forced in-person dining to shut down across the country for prolonged periods. While retail businesses tried moving online, restaurants had a harder time adapting. Offering takeout helped some survive, but for establishments that relied almost exclusively on in-person dining, the path was rough.
In fact, the American Bankruptcy Institute estimates that about 60% of businesses that closed during Covid never reopened.
What makes a restaurant business so vulnerable to shifting market conditions
Running a restaurant is notoriously complex. Ever wondered why? High startup costs, pricey rent in high-foot-traffic areas, and the burden of equipment purchases can leave owners financially strapped. Once operational, food expenses and labor costs become ongoing challenges.
Furthermore, many items are perishable and must be replenished constantly, which cuts into profits. Here is a quick look at common hurdles faced by restaurants:
| Key Factor | Effect on Profitability |
|---|---|
| High Rent | Reduces overall margins |
| Perishable Ingredients | Increases waste and inventory costs |
| Labor Expenses | Raises fixed monthly expenditures |
| Market Fluctuations | Makes revenue streams unpredictable |
Fernando’s Mexican Cuisine and the lease negotiation stalemate that ended two locations
Fernando’s is just one example of how even well-regarded dining spots can’t always weather these storms. After five months of lease discussions, the Dallas location could not reach an agreement with its landlord. Meanwhile, the Richardson lease was also set to expire. The decision to shut down both branches reflects how a single impasse can trigger far-reaching consequences.
Are you worried about losing another beloved restaurant in your town? One idea is to order directly when possible, avoiding third-party delivery apps that can take a significant cut. Also, spread the word on social media and consider purchasing gift cards or merchandise to show support.
With Fernando’s final service date approaching, loyal fans are expressing their sadness but also reflecting on the memorable dining experiences they enjoyed there. While the industry’s challenges remain fierce, many hope that other cherished local eateries will find ways to keep their doors open.