Las Iguanas stands on the edge. The UK-based Mexican restaurant chain with 47 locations faces administration unless creditors approve a last-minute restructuring plan. Lawyers told the High Court on May 6 that without approval, the operator has no funding to continue trading. Big Table Group, its parent, has covered operating losses but will stop. The chain could liquidate.
This isn’t an isolated stumble. Across the Atlantic, a wave of similar chains has sought Chapter 11 protection in the past two years. Tijuana Flats filed in April 2024, closed 11 sites during restructuring, and found new owners. Abuelo’s followed in September 2025 with assets and liabilities between $10 million and $50 million. On The Border filed in March 2025 and was acquired by Pappas Restaurant Group. Salt and Lime 44 LLC filed in Arizona on Feb. 26, 2026. El Burro Loco added its name to the list in October 2025. The Street reported on the pattern in March.
Costs tell much of the story. The National Restaurant Association notes that labor and food expenses have climbed 35% since the pandemic. Insurance, taxes, utilities and other items rose too. Chad Moutray, the association’s chief economist, said, “Well, we’ve seen overall labor and food costs go up 35% since the pandemic… But it’s not just those costs. We’ve seen insurance and taxes and everything else go up, utility costs, et cetera. Those extra costs have really eaten into the bottom line.”
Operators hit a wall when they try to pass those increases to customers. The James Beard Foundation’s 2026 Independent Restaurant Industry report found that price hikes beyond 10% trigger traffic drops and thinner profits. Anne McBride, vice president of impact at the foundation, explained, “Chefs and operators feel that they can no longer pass on any additional increasing costs to their customers. We really hit a spot where consumers, diners, cannot pay any more at restaurants than they already are.”
But. Consumers pulled back. Salaries failed to keep pace with menu prices. Justine Rapp Farrell, professor of marketing at the University of San Diego’s Knauss School of Business, observed, “It’s really tough because prices have just been rising, and a lot of consumers don’t feel as though their salaries have kept pace.” Ricardo Lopez, owner of La Vaca Birria, put it plainly: “It’s literally everything… Beans are up, rice is up.”
Even strong performers felt the strain. Chipotle’s CEO Scott Boatwright noted in comments cited by industry analysts that the company would maintain disciplined pricing yet could not fully offset inflation while delivering value. Traffic slowed. Diners chose home meals over restaurant tabs. Post-pandemic habits shifted. Economic uncertainty lingered.
Las Iguanas operates as part of The Big Table Group. A creditor meeting is set for May 28 to vote on the restructuring proposal. If approved, the company will seek court sanction on June 5. Failure means administration. The 47 restaurants, spread across the UK, hang in the balance. Swindon Advisor coverage of the court filing highlighted the absence of continued funding from the parent group.
Tito’s Burritos & Wings took a different path. The 21-year-old chain opted against bankruptcy and simply closed all remaining locations after dinner on March 1. Its owners released a farewell message: “Thank you from the bottom of our hearts for being part of this journey — whether you came to know Tito’s recently or have been with us since the beginning in May of 2005 — your support, stories, celebrations, and countless shared meals have meant more to us than we can ever fully express.” Yahoo Finance detailed the shutdown in February.
The numbers add up in brutal fashion. Food and labor each consume about 33 cents of every sales dollar. Occupancy, utilities, supplies, maintenance, credit card fees and administrative costs claim another 29%. That leaves roughly 5% pre-tax margin before any unexpected shocks. Input costs have posted double-digit gains across categories since 2019. Jonathan Carson, co-CEO of Stretto, summarized the pressures: “In this situation, a challenging economic environment, post-pandemic recovery issues, rising labor costs, changing consumer habits, and inflation have caused more restaurants to struggle.”
Some chains survive the process. Tijuana Flats emerged with new ownership and a leaner footprint. On The Border found a buyer in Pappas. Others, like Tito’s, simply exit. Las Iguanas now tests whether a UK restructuring plan can deliver a different outcome. Creditors hold the immediate power. The High Court will have the final say in June.
Broader signals point to continued pressure. Recent coverage shows franchisees of established brands such as Del Taco also shuttering locations after their own bankruptcy proceedings. Industry estimates suggest more than 1,400 restaurant locations could close across concepts in 2026. Mexican formats appear particularly exposed. Their reliance on commodities like beans, rice, proteins and produce magnifies cost swings. Festive atmospheres and value positioning that once drove traffic now struggle against price sensitivity.
Operators who adapt fastest may endure. Those who cannot raise prices without losing guests, cut costs without harming quality, or attract diners with compelling experiences face the same brink Las Iguanas now confronts. The perfect storm described by analysts shows few signs of easing. Higher input costs. Cautious consumers. Elevated operating expenses. The combination has already claimed multiple well-known names.
And the calendar turns quickly. May 28 looms for Las Iguanas creditors. June 5 for the court. Outcomes there will echo or diverge from the American Chapter 11 stories that preceded it. One fact remains clear. The margin for error in this segment has narrowed to almost nothing.
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