It’s been a rough few years for Abuelo’s, the Lubbock-based Tex-Mex chain that once dreamed of national domination. Now, it’s down to just 16 restaurants in seven states—and that’s after closing spots in Austin, Plano, and League City, because apparently even Texans weren’t buying $18 enchiladas in this economy. The company filed for Chapter 11 bankruptcy last month, revealing roughly $31 million in assets and about the same in debts. In other words, they’ve mastered that authentic West Texas business recipe: equal parts queso and chaos.
Two local shareholders—Randall Andrews and David Sharbutt—are trying to keep the dream alive, loaning up to $1.5 million to the sinking ship in what the court charmingly calls “debtor in possession financing.” Translation: they’ll fund payroll and pray people start ordering margaritas again. The loan has no interest unless Abuelo’s misses payments, in which case it jumps to 12%. That’s not a rescue plan—it’s a payday loan with salsa.
According to court filings, Abuelo’s has been battling inflation, high wages, and low traffic since 2023. Takeout orders are up (because who doesn’t love soggy tacos at home?), but alcohol sales are down—a deadly combo for any “casual dining” spot pretending it’s still 2005. Severe weather even cost them $550,000 in lost revenue this year, proving that in Lubbock, not even God wants you to have a happy hour.
Despite all this, company president Robert Lin remains optimistic, saying Abuelo’s can still generate enough revenue to “exit reorganization.” Which is corporate-speak for “we’re gonna keep microwaving enchiladas until the court says stop.”
If Don Pablo’s died in Lubbock, maybe Abuelo’s should’ve taken the hint—this town’s only sustainable export is bankruptcy filings and dust storms.
