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Home Business & Finance

Iconic Mexican restaurant closing after successful 44-year run todayheadline

August 7, 2025
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There’s a reason so many people are willing to shell out money for a good restaurant meal, even though it’s worlds cheaper to cook dinner at home.

For one thing, dining out means getting to enjoy a delicious meal you didn’t have to cook or shop for yourself. You also don’t have to wash the dishes afterward or deal with messy countertops.

Related: Dunkin unveils new ‘nighttime’ beverage

Plus, dining out can be a fun social experience. And even if you’re a decent cook, eating at restaurants allows you to sample different cuisines you might be afraid to attempt on your own.

The past few years have been pretty tough on the restaurant industry, though. Higher living costs have pushed consumers to cut back on restaurant spending, making it harder for even the most popular eateries to stay afloat.

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Not surprisingly, there have been a number of notable restaurant bankruptcies and closings in the past couple of years alone.

In May of 2024, Red Lobster filed for bankruptcy following a decline in revenue. Shortly thereafter, TGI Fridays, another popular chain, filed for Chapter 11 due to shrinking sales.

And if major chains are struggling to stay open, it makes sense that even successful standalone restaurants are getting pushed to the brink.

An iconic Mexican restaurant in Houston is closing after a successful 44 years.

Image source: Shutterstock

A Houston favorite restaurant is closing its doors for good

Mexican food is hardly an anomaly in Houston. The city is known for its wide array of Mexican and Tex-Mex cuisine.

One of Houston’s most celebrated Mexican restaurants has long been Picos.

Picos opened its doors to customers in Southwest Houston in 1984. Back then, it was mostly Tex-Mex eateries that dominated the city, but Picos was able to draw in crowds with its authentic Mexican recipes.

Related: Iconic Mexican restaurant chain closing final location

Fans of Picos loved the restaurant’s enchiladas and moles, not to mention its signature margaritas made with fresh lime juice.

In more recent years, Picos gained a reputation as a Cinco de Mayo hotspot, hosting a blowout parking lot party with an amazing brunch buffet.

But now, Picos is gearing up to close its doors for good. Chef-owner Arnaldo Richards has announced that the famous restaurant will shutter sometime in the next two months.

Not surprisingly, poor sales are to blame. Richards told the Houston Chronicle that Picos’ sales fell 18% in 2025 compared to 2024.

Declining sales are hurting restaurants large and small

At a time when food and labor costs are up, restaurants can’t afford to lose out on revenue. So it’s not shocking to see Picos follow in the footsteps of other popular eateries that have recently made the decision to shutter.

“This was not a decision made lightly,” Richards said in a statement. “We’ve weathered many seasons over the past 44 years, but the current economic climate and changes in how people dine have made it impossible for us to continue operating in the way our guests have come to know and love.”

Related: Impossible-to-book global sensation restaurant comes to US

The sad reality is that as living costs remain stubbornly elevated, many consumers are being forced to choose between covering essential bills and splurging on extras like restaurants. At the end of the day, even popular restaurants are getting squeezed to the point where they can’t hang on.

The dark cloud of tariffs might only make things worse.

If tariffs drive costs up broadly for consumers, they may have to cut back on restaurant dining even more. That could lead to an uptick in closures, forcing customers to have to say goodbye to even more of their favorite dining spots.

For now, fans of Picos can enjoy a meal before the restaurant shutters for good. Richards said he plans to wind down operations by the end of September but did not give an exact date.

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However, he said he intends to host a series of farewell dinners and events at Picos to celebrate its storied history. So there’s still a bit of opportunity for Houston diners to enjoy one last delicious meal.

Richards, meanwhile, will not be saying goodbye to the food industry. He’ll be focusing on a recently launched fajita delivery business that caters to offices as well as private events. 

Related: Historic Chinese restaurant closing unexpectedly after 42 years

Tags: 44yearclosingIconicMexicanRestaurantrunSuccessfultodayheadline
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