by Tucson, AZ – A well-known Mexican restaurant chain in Arizona has entered its most challenging chapter yet after shutting down most of its locations and losing a significant portion of its workforce in a single day. What began as an economic struggle has now grown into a crisis driven by federal action, unexpected staff losses, and legal uncertainty that could reshape the chain’s future.
Beloved Arizona chain faces closures after major ICE enforcement operation
The restaurant group, founded in 2008 by two brothers in Tucson, built its reputation on Sonoran- and Tampico-style dishes, fresh seafood plates, and a lively bar menu known for Micheladas. For 17 years, it served as a community gathering space across Arizona and parts of Mexico.
But like many Mexican restaurants across the country, the chain had already been strained by rising labor costs, expensive ingredients, higher interest rates, and more cautious consumer spending. The situation escalated sharply on December 5, when federal authorities executed a series of coordinated raids across its Arizona locations.
According to KGUN9, 46 kitchen employees were arrested, representing around 10% of the chain’s total workforce. Hours later, the business temporarily closed all nine of its Arizona restaurants, with only its Mexico location remaining open.
Chain confirms multiple permanent and temporary closures
Seven locations remain closed until further notice, and the chain has admitted that two additional underperforming sites may be shut down permanently.
Below is the latest status of each restaurant as of December 10, based on Google Maps listings:
Current Location Status
- 8320 N. Thornydale Rd., Tucson: Permanently closed
- 2097 E. Fry Blvd, Sierra Vista: Open
- 1402 S. Craycroft Rd., Tucson: Listed as open but not confirmed
- 13160 E. Colossal Cave Rd. #100, Vail: Permanently closed
- 77 E. Paseo De Golf, Green Valley: Temporarily closed
- 139 W. Cottonwood Ln., Casa Grande: Open
- 610 N. Grande Ave., Tucson: Temporarily closed
- 2750 W. Valencia Rd., Tucson: Open
- 1520 Apache Trail, Apache Junction: Temporarily closed
- Nogales, Sonora, Mexico location: Open
Despite the turmoil, the business has reopened three restaurants and has been updating customers through bilingual social media announcements.
“Our restaurant will be temporarily closed while we take a short pause to make a few necessary adjustments so we can continue offering the warm service and unique flavors you love,” the chain posted online.
Why federal agents targeted the business
ICE said the arrests stem from a multiyear investigation involving allegations of labor exploitation, immigration violations, and tax-related offenses. Authorities executed 16 warrants across nine restaurants and seven associated properties in Tucson.
Special Agent in Charge Ray Rede said the operation focused on transnational criminal organizations:
“This multiyear investigation that targeted TCOs alleged to be involved in human smuggling, human trafficking derived from peonage resulted in the shutdown of the restaurants.”
He added that similar enforcement actions may follow in Arizona.
However, the chain’s director of operations, Cesar Rodriguez, disputed the accusations in an interview with the Tucson Sentinel. He said all employees were required to provide identification and complete I-9 forms at hiring.
“The accusation is they were paying the employees that were undocumented cash under the table. There were a lot of false allegations that we were drug smuggling and child trafficking. It was just ridiculous,” Rodriguez said.
He also stated that he has no information about the detained workers’ whereabouts.
Broader challenges already pushing restaurants to the brink
While the chain’s closures stem from federal action, the restaurant industry has been navigating a difficult climate for years.
Key data shows:
- About 17% of new restaurants close within their first year, according to the U.S. Bureau of Labor Statistics.
- Roughly 50% of restaurants shut down within five years, and only 34.6% survive past a decade, per Oysterlink.
- Food-service traffic fell 1% in the quarter ending June 2025, reports Circana.
- JPMorgan Chase analysts note that small businesses’ survival rates rely heavily on cash liquidity and the ability to withstand economic downturns.
Against this backdrop, the chain’s sudden operational and legal crisis magnifies the pressures already felt across the food-service sector.
What’s next for the restaurant chain?
The company has not provided a timeline for full reopening. Several locations remain listed as temporarily closed, and the future of two underperforming sites is uncertain. Leadership continues to maintain that the allegations against the chain are inaccurate, while federal authorities say the investigation is ongoing.
Customers and community members are now watching closely to see whether the once-popular dining brand can recover from the financial strain, reputational damage, and staffing losses.
If you’ve visited one of the affected locations recently or noticed changes in service, share your experience in the comments.
