COLLEGE STATION, Tex. (KBTX) - The Taco Cabana on Texas Avenue in College Station has unexpectedly closed its doors.
Fiesta Restaurant Group, Inc., the parent company of Taco Cabana, released a statement on Jan. 13 announcing that it will close 19 Texas Taco Cabana locations effective immediately.
The College Station restaurant was one of these locations.
According to Fiesta President and Chief Executive Officer Richard Stockinger, Taco Cabana started a margin improvement plan that is supposed to “improve restaurant-level Adjusted EBITDA margins by approximately 200 to 300 basis points in 2020 vs. 2019.”
“The margin improvement plan includes efficiency initiatives in operations across the food and operating expense categories and the closure of 19 underperforming restaurants in Texas.
“These closures eliminate all stores with significant losses, which we expect will result in a highly viable portfolio of restaurants.”
Employees impacted by the closure have been offered positions at the other locations.
College Station Taco Cabana employees have been offered jobs at the Bryan location.
The 19 Taco Cabana locations “estimated $4.2 million in restaurant-level pre-tax operating losses, including $2.0 million in depreciation expense, for the 12 months ended Dec. 29, 2019,” according to the Fiesta Restaurant Group.