While inflation, rising labor costs, and a struggling economy have hit many restaurants hard, Mexican chains have seemingly faced even deeper problems.

“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,” Justine Rapp Farrell, a professor of marketing at the University of San Diego’s Knauss School of Business, told Scripps News.

Mexican restaurant owners have specifically commented on price hikes impacting their menu items.

"It's literally everything," La Vaca Birria’s owner Ricardo Lopez told People. "Beans are up, rice is up."

Chipotle, which expects 2026 sales to be flat, sees costs rising higher than it can raise prices.

"We will continue to take a disciplined and measured approach to pricing, but do not expect it to fully offset inflation in the near term as we remain committed to delivering exceptional value for our guests," CEO Scott Boatwright said during the chain's fourth-quarter earnings call.

These factors have led to a number of major places in the space, including Tijuana Flats, Abuelo's and On the Border, filing for Chapter 11 bankruptcy protection. Now, another chain, Salt and Lime, has also filed its own Chapter 11 bankruptcy petition.

Salt and Lime files for Chapter 11 bankruptcy

Salt and Lime 44 LLC, an Arizona-based chain, has filed for Chapter 11 bankruptcy protection, according to PacerMonitor documents. That chain operates three restaurants in Arizona, and the filing does not impact independent restaurants using similar names operating in other states.

"As of February 2026, the company operates the Salt and Lime Modern Mexican Grill located on North 44th Street in Phoenix. The brand maintains a total of three locations in the region, including sites on Shea Boulevard and Cave Creek, though the bankruptcy filing specifically pertains to the 44th Street entity. The company was recently involved in civil litigation in Maricopa County Superior Court, with a hearing held as recently as February 23, 2026," according to RK Consulting, a firm that covers Chapter 11 bankruptcies.

The Salt and Lime brand was established in 2014 with its flagship Scottsdale location. The 44th Street location, managed by Salt and Lime 44 LLC, opened in early 2024 following a comprehensive remodel of the space, according to local news reports.

Currently, the chain remain open during its Chapter 11 bankruptcy process.

Related: 51-year-old regional fast-food favorite files Chapter 11

Salt and Lime Chapter 11 facts:

• Salt and Lime 44 LLC filed for Chapter 11 bankruptcy on Feb. 26, 2026, in the U.S. Bankruptcy Court for the District of Arizona, according to PacerMonitor.

• The case is assigned Case No. 2:26‑bk‑01762 and was voluntarily filed under Chapter 11, allowing the restaurant to seek restructuring while continuing operations, reported Bankruptcy Observer.

• Assets and liabilities are both reported in the range of $100,001 to $1,000,000, with roughly 50-99 creditors listed in the initial filing documentation, according to the PacerMonitor filing.

• The initial docket entries included the Chapter 11 voluntary petition, a deficiency notice for missing documents, and the scheduling of a meeting of creditors for March 31, 2026, according to PacerMonitor.