EL PASO, Texas (KTSM) — Chihuahua Charlie’s, which opened earlier this year, announced its upcoming closure in a social media post, writing that “the economy has caught up to us” and that the owners could no longer continue operations.
Matteo’s Mexican Food also announced the closure of all four of its locations. In a statement, the restaurant cited rising inventory costs and a drop in sales as some of the reasons for the closures.
Matteo’s restaurants closing all 4 Borderland locations
The Baked Bear, a national dessert chain, confirmed it is closing its West Towne Marketplace location after seven years in El Paso. The shop thanked customers for their support but did not provide a specific reason for the closure.
The Baked Bear new to list of businesses closing in El Paso
Other local businesses say they’ve been feeling similar financial strain this year.
At World Boba and Coffee, co-owner David Ramos said that while the business remains open, 2025 has looked different from their first two years.
“In the first two years, we actually saw a steady increase, but this year, it’s been a bit of a struggle,” Ramos said.
Ramos said costs for supplies, including coffee, imported syrups, rent and utilities have all increased. Despite that, he and his brother have chosen not to raise prices.
“We decided not to raise prices… we value our customers, and we know they’re dealing with higher costs too,” he said.
UTEP economics professor Tom Fullerton said rising food costs, policy uncertainty and reduced customer traffic may all be contributing to recent closures.
“One thing that’s hurt those operators is that food costs have gone up substantially in 2025 due to the tariffs that were imposed by the White House shortly after January,” Fullerton said.
He added that the federal government shutdown, the longest in U.S. history, may have also played a role, with many federal employees going weeks without pay and cutting back on non-essential purchases.
Fullerton said disruptions like that can take months for small businesses to recover from, and while some turnover is normal, it is too early to know whether more closures could follow in 2026.
Ramos said that despite the uncertainty, he’s focused on staying open and connected to the community.
“If it weren’t for our customers, we’d probably be one of those closing as well,” he said. “We thank all our customers from the bottom of our heart.”
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