The margarita glasses are about to run dry at a Dallas institution. After more than two decades serving up memories alongside tableside guacamole, Fernando’s Mexican Cuisine announced the permanent closure of all locations on May 18, 2025. Like watching the final season of a beloved TV show, locals now have just weeks to say goodbye to the restaurant that has been a fixture in the Dallas dining scene since the early 2000s. Fernando’s joins the growing list of beloved culinary institutions falling to lease disputes, echoing Berkeley’s 300-Year-Old Pastry Haven which closed its doors last month after its own rental standoff turned their pastries into past news.
The Texas-based chain built its reputation on elevated Mexican classics – from their tableside guacamole preparation to their signature Jalapeño-Pineapple Margaritas that became favorites among regulars and newcomers alike.
“With extraordinary sadness, we share that Fernando’s Mexican Cuisine will be closing both of our restaurant locations,” wrote Managing Partner Anne Cowden in the official announcement. Despite five months of negotiations at their Dallas location, they couldn’t reach an agreement with the landlord. With their Richardson lease also approaching expiration, they made the difficult decision to shutter both restaurants.
The restaurant industry operates like a video game set to nightmare mode—one in five new spots don’t survive their first year, and about half close within five years, according to the National Restaurant Association’s 2024 industry report. Fernando’s beat those odds for two decades before finally succumbing to market pressures.
Running a restaurant isn’t just about paying rent—it’s hemorrhaging money from every angle. From startup costs to equipment expenses, renovations, labor, and inventory management (the stuff that literally rots if not sold), the margins leave little room for error.
For many Dallas residents, Fernando’s has been more than just a place to eat—it’s been where countless celebrations and casual weeknight dinners have taken place over the years. The restaurant has hosted special events and holiday celebrations that became traditions for many local patrons.
The restaurant industry is incredibly challenging in the best of times. Restaurant operators typically work with profit margins between 3-5%, according to the National Restaurant Association, making them particularly vulnerable to increases in rent, food costs, or labor expenses.
According to the American Bankruptcy Institute’s 2024 report, approximately 60% of food establishments that closed during COVID-19 never reopened. Fernando’s survived that extinction-level event only to fall victim to real estate reality.
Want to prevent your other favorite spots from posting those dreaded “with heavy hearts” closure announcements? Industry experts suggest dining out regularly at local establishments, ordering takeout directly from restaurants rather than through commission-heavy third-party apps, and spreading the word about places you love.
Mark your calendars for May 18—the day Fernando’s serves its final meals. Until then, locals have just a few weeks to enjoy Fernando’s signature dishes before this chapter in Dallas dining history closes like a restaurant on a Monday.
“We’re expecting these final weeks to be extremely busy,” Cowden added. “We’re grateful for the incredible support from our customers over the years and hope to see everyone one last time.”
