Another long-standing Mexican restaurant chain has closed nearly all of its locations, ending years of family meals, weekly happy hours, and a loyal customer base. Due to an unexpected event, a more severe crisis has now affected the business: the sudden loss of many employees.
Mexican restaurants across the United States have been struggling with rising labor and food costs fueled by inflation, higher interest rates on their debt obligations, and more cautious consumer spending. This beloved Arizona chain was no exception.
Founded in 2008 by two brothers as a single restaurant in Tucson, the Mexican restaurant chain is known for authentic Sonoran and Tampico-style Mexican cuisine, with a focus on seafood dishes. It has also become a popular hangout spot due to its wide range of Michelada drinks and fun cocktails.
However, after 17 years of building a strong community across Arizona and Mexico, its future is now uncertain, not only because of the economic challenges facing the wider industry, but also because of far more serious legal issues.
Taco Giro has confirmed that seven of its restaurants will remain closed until further notice. The sudden closures follow multiple ICE raids at various locations, in which 46 kitchen workers, making up 10% of its staff, were arrested on December 5, as reported by KGUN9.
After the raids, Taco Giro closed its nine Arizona restaurants while keeping its Mexico location open, all of which are still listed on its website. The chain also took to its social media platforms, posting updates in both English and Spanish to notify customers of the closure.
“Our restaurant will be temporarily closed while we take a short break to make a few necessary adjustments so we can continue to offer the warm service and unique flavors you love,” Taco Giro wrote in a social media post. “We will be ready to welcome you back very soon with the same love, passion, and flavors that always make you feel at home.”
Since then, Taco Giro has slowly reopened its locations, with three currently operating. The chain also revealed that it may close two additional underperforming restaurants, which were already part of its plans before the raids.
Below are all the current Taco Giro location statuses, according to Google Maps as of December 10th.
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
Blvd. El Greco 70, Plaza Cumbres, 84066 Heroica Nogales, Sonora, Mexico: Open
Taco Giro closes most restaurants after ICE raids.Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-1gfnohs loader”/>
Taco Giro closes most restaurants after ICE raids.Shutterstock
According to ICE, the raids were part of a multi-year investigation into labor exploitation, tax violations, and immigration violations. Sixteen warrants were executed around nine restaurants and seven related stash houses in Tucson, carried out with the help of local agencies in Cochise County and Sierra Vista.
“This multi-year investigation targeting TCOs allegedly involved in human smuggling, human trafficking derived from peonage resulted in the closure of the restaurants,” said Special Agent in Charge Ray Rede.
“This agency will not stand for it and those seeking to continue such practices are on notice – there will be more enforcement operations in Arizona.”
Cesar Rodriguez, Taco Giro’s director of operations, told the Tucson Sentinel that employees were required to provide a copy of their identification and fill out all state and federal tax forms, including the I-9 employment verification document, at the time of hire.
Rodriguez also contested the allegations of ICE and added that he does not know where the arrested workers are.
“The charge is that they were paying employees that was undocumented cash under the table,” Rodriguez told the Tucson Sentinel. “There were a lot of false allegations that we were smuggling drugs and trafficking children. It was just ridiculous.”
While Taco Giro’s closings are tied to legal troubles, the restaurant industry is still a tricky business.
The US Bureau of Labor Statistics reports that about 17% of new restaurants close in their first year. Long-term survival is even more challenging, with around half of restaurants closing within five years and only 34.6% surviving past 10, according to Oysterlink.
In addition, food service traffic decreased by 1% in the quarter ending in June 2025, according to Circana.
“Small businesses can find it difficult to operate during challenging economic conditions. Exit rates typically decrease with the age of the firm and cash flow, which can help businesses withstand the downturn. Historically, the median life expectancy for small businesses has remained around five years,” according to JPMorganChase analysts.
More Restaurant Closings:
However, there is hope that Taco Giro will make a full comeback.
Mexican restaurants, in particular, are increasing in popularity in the United States IBISWorld predicts that industry revenue will reach $96.4 billion by 2025, with an annual growth rate of 4.7% over the past five years.
“Mexican restaurants are loved for their vibrant flavors, affordability and cultural authenticity. Many restaurants in the country – from New York to Arizona – capitalize on the demand for customizable and flavorful dishes,” said Restroworks Head of Marketing and Corporate Communications Nikunj Kewalramani.
“The presence of a growing Hispanic and Mexican American population has also fueled demand for more authentic and more expensive Mexican restaurants, expanding the appeal beyond fast casual formats.”
Related: 65-year-old fast-food chain sues main operator after closure
This story was originally published by TheStreet on December 10, 2025, where it first appeared in the Restaurants section. Add TheStreet as a Preferred Source by clicking here.
