Loyal customers have been forced to say adios to the Z’Tejas restaurant chain for good after 36 years of business.
The longtime eatery shuttered its last location in Kyle, Texas, on June 30, marking the end of an era in the South.
‘After almost 30 years of serving communities in Texas and Arizona, we’ve decided it’s time to close this chapter,’ the chain announced on its website.
The company said it was closing its last remaining outpost, blaming its lease coming to an end and ‘the challenges of today’s market.’
The final shutdown comes a couple of years after a huge wave of closures for the chain, including its 33-year-old flagship restaurant in Austin.
Z’Tejas continued to operate four locations by the time 2025 rolled around.
However, the chain was quietly searching for a buyer before ultimately deciding to shutter all restaurants.
‘We are immensely thankful to our guests, neighbors, and friends for your support, the memories, and for allowing Z’Tejas to be a part of your lives,’ the management team stated.
Z’Tejas closed its last operating restaurant in June after 36 years of business
Z’Tejas was famous for creating made-from-scratch Southwestern cuisine
Z’Tejas was known for creating made-from-scratch Southwestern cuisine, as well as features like brunch and private events.
It reached its peak in the 1990s after expanding its operations to Arizona and once operated 14 restaurants, at least one being in California.
Things took an unfortunate turn for the chain in the 2010s, leading to a bankruptcy filing in 2015 due to tough competition and trend changes.
Z’Tejas filed for bankruptcy for the second time in 2017, and was purchased by Randy Cohen, the founder of TicketCity, the following year, with the aim of restoring it to its former success.
‘We’ve got so much love and spirit at Z’Tejas and I just want to see it bounce back to the magic it used to be,’ Cohen told Ahwatukee Foothills News in 2023.
The company invested $1 million in a restaurant revamp, which included new murals, decorations, furniture, and landscaping.
While Cohen put the chain up for sale, co-owner Robby Nethercut claimed the restaurants were doing ‘really well’ and hoped a buyer would help the brand grow.
Sadly, Z’Tejas could not find any bidders, making it the end of the road for the once-thriving chain.
The chain explained that ‘challenges of today’s market’ was a factor in the closure
The restaurant chain had closed several restaurants before 2020 after filing for bankruptcy twice
Z’Tejas is not the only restaurant business to have permanently shuttered this year.
The once-popular EVOS burger chain ceased operations after 31 years in April.
Sticky’s Finger Joint, a New York-based chicken chain, is closing all its restaurants after failing to bounce back from its April bankruptcy filing.
Others have shrunk significantly over the last few years following longtime financial struggles.
On The Border Mexican Grill & Cantina, a major Z’Tejas competitor, filed for bankruptcy in March and is closing 76 restaurants in 24 states.
Chains hanging on by a thread after bankruptcy filings include Dallas-based pub chain Bar Louie and Planta, a celebrity hotspot known for Asian-inspired dishes.
Other businesses like Jack in the Box and Noodles & Company are in the process of completing mass closures while avoiding Chapter 11 bankruptcy protection.
