Famous Mexican restaurant unexpectedly closing, no bankruptcy

The harsh decision is upsetting customers after over 60 years in business.

May 23, 2025 - 15:20

Famous Mexican restaurant unexpectedly closing, no bankruptcy

One of the most fickle industries to operate a business in is the restaurant space.

Sometimes, it seems like no matter what you do, an eatery just seems destined to fail.

Part of this is because running a dining establishment is so resource-intensive.

Let's say you're starting up a restaurant from scratch.

You'd need a lot of money up front to purchase property, equipment, dining accessories, and to make the necessary renovations.

Once the foundation has been laid, you'd need to hire labor, which is typically hard to come by and can be highly seasonal with a lot of turnover.

And recurring costs are expensive, too.

Since you'd be running electricity near-constantly to preserve food, and you'd be keeping long hours, utilities would be higher than average.

And food is a perishable good, so fresh products would need to be shipped in almost daily — and a lot of it would go to waste.

A popular San Antonio Mexican restaurant is closing down.
Image source: Getty Images

The restaurant industry is difficult

But costs are just the beginning of a restaurant owner's plight.

Customer tastes are also incredibly fickle. What's considered trendy and exotic now may be considered a flash in the pan a year from now.

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And even if your food is deemed worthy, rising costs of living, a few bad online reviews, or changing population trends can sink your business before it even takes off.

It's no wonder, then, that about one in five restaurants fail within their first year of business.

That number increases to about one in two restaurants by year five.

Another Mexican restaurant goes under

And sometimes, even when everything seems to be going right, something unexpected happens and sinks your whole operation.

Such is the case for Oscar's Taco House, a popular taco shop located in San Antonio, Texas.

Oscar's Taco House is famous for its puffy tacos, which are fried for a few seconds until they puff up, making for a crunchy and indulgent twist on the traditional Mexican favorite.

The restaurant had been in business for over 60 years, since 1962. But now, it's closing as the City of San Antonio prepares to construct a railroad overpass near the city block where Oscar's Taco House operates.

The owner of Oscar's Taco House, Alex Pruneda, said the planned construction will hurt business by reducing customer flow and foot traffic. Oscar's also functions as a drive-in, but the railroad project will ostensibly block easy access.

The City of San Antonio reportedly asked for Oscar's to vacate business in May 2025, but ultimately granted an extension.

So the official last day for Oscar's Taco House will be June 28.

Construction is expected to begin in mid-2026, and Oscar's has no plans to relocate or reopen business elsewhere.