Another long-standing Mexican restaurant chain has closed all of its locations, putting an end to years of family dinners, weekly happy hours and a loyal customer base. Due to an unexpected event, a more serious crisis has now hit the business: the sudden loss of many employees.
Mexican restaurants across the U.S. are struggling with rising labor and food costs, inflation, higher interest rates on their debt obligations, and more cautious consumer spending. This beloved Arizona chain was no exception.
Founded in 2008 as a solo restaurant by two brothers in Tucson, the Mexican restaurant chain is known for its authentic Sonoran- and Tampico-style Mexican cuisine, with a focus on seafood. 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 in Arizona and Mexico, its future is now uncertain, not only because of the economic challenges facing the larger industry, but also because of several serious legal issues.
Taco Giro has confirmed that seven of its restaurants will be closed until further notice. The sudden closures follow several ICE raids at various locations, including the arrest of 46 kitchen workers, about 10% of the staff, on Dec. 5, as reported by KGUN9.
After the raid, Taco Giro closed all of its Arizona restaurants while keeping the Mexican 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 some necessary adjustments so we can continue to provide you with the warm service and unique flavors you love,” Taco Giro wrote in a social media post. “We will be ready to welcome you soon with the same love, passion and taste that always made you feel at home.”
Since then, Taco Giro has gradually reopened its locations, with three currently in operation. The chain also revealed that it may close two additional underperforming restaurants, which were part of its plans before the raids.
Below are all current locations of Taco Giro locations according to Google Maps as of December 10th.
8320 N. Thornydale Rd., Tucson: Closed forever
2097 E. Fry Blvd, Sierra Vista: open up
1402 S. Craycroft Rd., Tucson: Openly listed but not confirmed
13160 E. Colossal Cave Rd. #100, Vail: Closed forever
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 raid.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 at nine Tucson restaurants and seven related stash houses with the assistance of local agencies in Cochise County and Sierra Vista.
“This multi-year investigation targeting TCOs accused of engaging in human trafficking led to the closure of the restaurants,” said Special Agent in Charge Ray Reddy.
“This agency will not stand for this and those who seek to continue such practices are on notice – there will be further enforcement action in Arizona.”
Cesar Rodriguez, Taco Giro’s director of operations, told the Tucson Sentinel that employees are required to provide a copy of their identification and complete all state and federal tax forms, including an I-9 employment verification document, at the time of enrollment.
Rodriguez also denied ICE’s allegations, adding that he did not know the whereabouts of the arrested workers.
“The allegation is that they were paying employees that were undocumented cash under the table,” Rodriguez told the Tucson Sentinel. “We had a lot of false accusations of drug trafficking and child trafficking. It was just ridiculous.”
While Taco Giro’s closing has been linked to legal issues, the restaurant industry is still a tricky business.
The US Bureau of Labor Statistics reports that about 17% of new restaurants close within their first year. Long-term survival is even more challenging, with nearly half of restaurants closing within five years and only 34.6% surviving, according to Oysterlink.
Additionally, food service traffic declined by 1% in the quarter ending June 2025, according to Circana.
“Small businesses can find it difficult to operate in challenging economic conditions. Exit rates typically decrease with firm age and cash liquidity, which can help businesses weather a recession. Historically, the average lifespan of small businesses is about five years,” according to JPMorganChase analysts.
More restaurant closings:
However, Taco Giro is expected to make a full comeback.
Mexican restaurants, in particular, are growing in popularity in the US IBISWorld predicts that industry revenues will reach $96.4 billion by 2025, with an annual growth rate of 4.7% over the past five years.
“Mexican restaurants are beloved for their vibrant flavors, affordability and cultural authenticity. Many restaurants across the country—from New York to Arizona—capitalize on the demand for customizable, flavorful dishes,” said Nikunj Kevalramani, RestroWorks head of marketing and corporate communications.
“The presence of a growing Hispanic and Mexican American population has also increased the demand for more authentic and more expensive Mexican restaurants, expanding their appeal beyond fast casual formats.”
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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.
