A major Mexican fast-casual chain exits the US market as dining-out spending falls for the second straight year.
A rival to Chipotle Mexican Grill has closed all its US restaurants, citing prolonged declines in customer traffic and rising costs. The shutdown reflects broader pressures on the restaurant sector as consumers cut discretionary spending amid high inflation and economic uncertainty.
Food-away-from-home prices surged 39.3% from January 2019 to January 2026, nearly double the 19.2% increase seen in the prior seven-year period. Survey data shows 30% of Americans have reduced restaurant visits over the past year, while 46% of operators reported lower traffic in March, up from 30% in February.
Industry projections indicate only modest growth in restaurant traffic for 2026 after two consecutive years of declines, underscoring persistent challenges for the sector.