Don Pablo’s which operates a restaurant near Christiana Mall, has filed for Chapter 11 bankruptcy protection, CNNNation’s Restaurant News and other media outlets reported.
The local Don Pablo’s, known for the aroma of its refried beans around the restaurant, remains opened, although there were reports that other restaurants at the tiny chain had closed.
The news outlet reported that the company blamed competition from fast casual operators like Chipotle and Moe’s for its problems.
Ironically, the bankruptcy filing came on National Taco Day.
,The news outlet reported that the company blamed competition from fast casual operators like Chipotle and Moe’s for its problems.
However, the chain occupied a different niche by offering a large menu of Mexican food items.
That placed it in competition with well-managed family owned restaurants in Delaware like La Tonalteca. Family owned restaurants have limited growth of full-menu Mexican restaurants in spite of the popularity of the cuisine.
Also, many restaurant chains have added Mexican-inspired entries, such as tacos and quesadillas to their appetizer and entree menus.
It has been a rough period for small and mid-sized chains, with sandwich shop Cosi filing for Chapter 11 last week and closing its Newark location.
Earlier, Lone Star Steakhouse in New Castle closed its doors after a couple of decades as did Bugaboo Creek in the Christiana area.
Don Pablo’s is part of a San Antonio company that has acquired fading restaurant brands including Old Country Buffet, which operates a restaurant a short distance away from the mall. The filing was made in San Antonio, CNN Money reported.
Under previous ownership, Don Pablo’s had filed for Chapter 11 during 2008, the year of the financial crisis.
At one point, Don Pablo’s had more than 100 restaurants.
