The casual Mexican restaurant sector has faced a challenging year in 2026, as dining chains have closed underperforming locations, filed for Chapter 11 bankruptcy protection to reorganize their businesses, and in at least one case, filed for Chapter 7 liquidation to shut down all operations.
Once popular Mexican chain On the Border ceased operations in 2026, after closing all of its locations before its operating company, OTB Hospitality, filed for Chapter 7 liquidation on June 19, 2026, the company shared in a press release.
Another chain facing financial distress is Session Taco, a St. Louis-based casual Mexican dining chain, which closed one of its restaurant locations for the second time in seven months. The chain has not filed for bankruptcy.
The Mexican chain, originally branded Mission Taco Joint until a 2023 name change, closed its Sobremesa restaurant in St. Charles, Mo., on Sept. 13 after only three months of operation, according to its Facebook page.
The St. Charles location was previously branded as Session Taco until the company closed the restaurant on Feb. 13 to redesign and rebrand the restaurant as Sobremesa before reopening in June 2026.

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