Sausalitos in crisis: Massive branch closures are shaking Germany!

Sausalitos in crisis: Massive branch closures are shaking Germany!

The Sausalitos chain, known for its Mexican specialties and a popular meeting place, is in serious crisis. How fr.de reported, the company started a trend-setting wave of closures in Germany on June 29, 2025. Numerous branches are affected, including locations in cities such as Essen, Hamburg and Cologne, most recently the branch at Heumarkt.

The reasons for the drastic measures are complex. The chain also announced the closure of the Cologne branch on July 7, 2025. It is also no longer possible to continue the Dortmund branch until the end of July 2025. From a report by n-tv.de It appears that Sausalitos has filed for bankruptcy. Over 40 of its branches are affected, although the situation for many employees, around 1,000 in total, did not initially worsen - wages were secured until the end of May.

Background and challenges

Insolvency applications were filed for several companies, including Sausalitos Holding GmbH and Sausalitos Heumarkt 67 GmbH. The Munich District Court has appointed Michael Schuster as insolvency administrator with the aim of initially maintaining operations and finding an investor. The changes in purchasing behavior due to the corona pandemic and the decline in the number of guests have contributed greatly to the current situation.

The Wolfsburg branch is also affected by the insolvency and cannot be continued due to ongoing losses. In this case, a buyer could not be found. Following the wave of closures, the catering industry has been under pressure for some time. How statista.com reports, around 62,000 catering establishments in Germany closed between 2019 and 2023, of which 8,000 were due to bankruptcies. The current inflation situation and the Ukraine conflict have further driven up the number of closures.

The future of gastronomy

The catering industry is currently facing major challenges. According to Creditreform expert Patrik-Ludwig Hantzsch, the general conditions are unfavorable. The increase in sales tax on food has further exacerbated the situation, while sales have fallen by 13 percent compared to previous years. A continuing trend of insolvencies in the hospitality industry could continue to pose serious problems for the industry in the coming months.

Those affected, especially Sausalitos' loyal customers, are expressing their gratitude on social media for the moments they experienced and showing their sadness over the closures. The coming weeks and months will be crucial to see whether and what measures will be taken to secure the remaining branches or give the brand a new look. But the signs are pointing to a storm in Germany's gastronomic landscape.