After over 20 years of serving the Dallas market, Fernando’s Mexican Cuisine revealed that both locations would close. The upscale Texas chain with a dedicated clientele will close its doors forever this month, citing failed lease negotiations as the main reason for taking this difficult decision.
Highlights
- Richardson and Dallas restaurants to close permanently on May 18, 2025
- Failed negotiations over leases after five months of talks concluded with the closing
- No bankruptcy was involved in closing the doors after 20 years of running the business.
Restaurant Industry Faces Unprecedented Challenges
The dining industry has experienced more difficulties than perhaps any other industry in recent history. Operating a restaurant has always been notoriously difficult, but the stresses that arose in 2020 have had lasting impacts that continue to influence establishments to this day.
Early 2020 witnessed almost every in-person establishment throughout the nation shut down for at least a temporary time, with the American Bankruptcy Institute estimating that about 60% of those establishments that closed during this period never reopened.
Most restaurants attempted to pivot to takeaway options. Still, this transition was strenuous and difficult to scale quickly, with the majority of advantages accruing only to those places that already had strong customer loyalty before the pandemic.
Reasons Behind Fernando’s Difficult Decisions
After 20 years in business, Fernando’s Mexican Cuisine has made the difficult decision to close both of its Dallas area locations. Although the restaurant had weathered many struggles during its 20-year existence, current circumstances have made it impossible to stay open.
“After 20 years of operations and five months of lease negotiations at our Dallas location, we were unable to reach a lease agreement with the landlord,” stated Fernando’s managing partner, Anne Cowden, in a statement announcing the closure.
Management’s Farewell Statement
“With extraordinary sadness, we share news that after 20 wonderful years, Fernando’s Mexican Cuisine will be closing both of its locations on May 18th,” Cowden wrote, adding that with the Richardson lease also coming to an end soon, it was considered an appropriate time to shut down both restaurants.
Harsh Reality of Restaurant Economics
The restaurant business has long grappled with overwhelming statistics regarding survival and success. There has been a reported estimate of nearly 20% of restaurants closing down within the initial year, numbers increasing to 50% within five years, and thus Fernando’s 20-year stint becomes even more remarkable.
The cost of doing business for restaurants is a lingering concern industrywide. Expensive lease for space at choice locations, utilities, and perishable food products that inevitably have to be discarded. Staffing costs can substantially chip away at margins even for the most popular establishments.
Restaurant establishments entail high initial costs for high-traffic areas, appliances, equipment, and remodeling. Once operational, the ongoing expenses weigh down the business with constant financial pressure that makes long-term viability difficult for most restaurants.
Fernando’s Mexican Cuisine’s closing after 20 good years highlights the precarious nature of the restaurant industry. Though enduring a multitude of issues over two decades, one of which was a pandemic, not being able to obtain good lease conditions was ultimately what caused this closure to occur. The restaurant will serve its last meals on Sunday, May 18, 2025.
