A POPULAR Tex-Mex restaurant chain and Chipotle rival has officially exited Chapter 11 bankruptcy, announcing the next steps for its comeback.
Tijuana Flats shared its menu innovation plans, along with several other strategies to revamp the fast casual chain.
Following its bankruptcy filing last April, popular Tex-Mex chain Tijuana Flats has completed its restructuring process and exited Chapter 11.
The restaurant chain appointed turnaround specialist James Greco as its CEO last June, who managed to reduce its debt, improve its profitability, and up its operational efficiency, according to a press release.
“Emerging from Chapter 11 is pivotal for our business. This process positions us to focus on what truly matters – delivering exceptional hospitality, value and flavors to our guests,” said Greco in a statement.
“As a fast-casual Mexican restaurant brand known for its fun, festive atmosphere, we are dedicated to preserving our unique identity while continuing to innovate and meet the evolving needs of our guests and communities.”
RESTAURANT REVAMP
Tijuana Flats, with around 100 locations, shared its plans moving forward from the successful bankruptcy exit.
One of the strategic moves the company outlined was focusing on customer feedback to innovate its menu and differentiate itself from rival Mexican fast casual chains like Chipotle.
Emerging from Chapter 11 is pivotal for our business. This process positions us to focus on what truly matters – delivering exceptional hospitality, value and flavors to our guests.”
James GrecoTijuana Flats CEOTijuana Flats partnered with a renowned family-owned Mexican food company to whip up “authentic recipes superior to anything available in fast casual Mexican.”
“This collaboration includes the soon-to-be permanent Street Tacos, the result of a successful limited-time beta launch,” the company shared in the press release.
The new street tacos may be a key player in Tijuana Flats’s comeback, as several fast casual chains are testing Mexican street food items.
Taco Bell, for example, launched its Cheesy Street Chalupas last July, which merge street tacos with the chain’s staple flavors.
Street foods allow large fast casual companies to adopt a fresh aesthetic, as these menu items are typically associated with much smaller businesses.
In addition to upgrading its menu, Tijuana Flats’s post-bankruptcy efforts include renovating many locations.
The brand refresh, however, will not change its central identity, the company shared in the press release.
Tijuana Flats also plans to launch “tailored marketing promotions” and use its Flatheads loyalty program to connect with customers and emphasize value.
Additionally, the fast casual restaurant has expansion plans in the works.
Tijuana Flats currently has locations in Florida, Alabama, North Carolina, Kentucky, and Tennessee, and intends to launch in new markets.
Tijuana Flats was not alone in its bankruptcy struggles, as a variety of macroeconomic factors have pushed many restaurant chains to shutter locations and file for bankruptcy.
Rising costs from inflation, labor shortages, changing consumer habits, and increased competition from delivery services are just a few factors at play.
One of the popular restaurant chains that took a hit was Red Lobster, which filed for bankruptcy last year and closed hundreds of restaurants.
Similar to Tijuana Flats, the chain made attempts to woo back diners, including the launch of its happy hour menu.
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