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The restaurant bankruptcy filing trend continues with the second filing this week and third in the past seven days. According to a <a href="http://nrn.com/finance/don-pablo-s-files-bankruptcy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nations-restaurant-news-don-pablos-files-for-bankruptcy-6204" target="_blank" rel="nofollow" target="_blank">recent Nation&rsquo;s Restaurant News article</a>, Rita Restaurant Corp., which operates the 12-unit Mexican chain Don Pablo&rsquo;s, has filed for bankruptcy protection. The company has mentioned the increased competition of fast-casual Mexican chains and the weakness of the fast-casual industry in general for the filing.

The company said in a statement that it plans to &ldquo;restructure its debts and liabilities and recapitalize the business&rdquo; while continuing to operate &ldquo;many of the remaining restaurants.&rdquo;

Peter Donbavand, vice president of business development for Rita Restaurants, explains the intense pressure the restaurant industry is under from external sources,&nbsp;&ldquo;Increasing minimum wage requirements, more expensive employee benefit plans and rent hikes in many locations all add to mounting expenses. Add to that the recent slowdown in industry-wide sales and at our restaurants, and we cannot continue to operate under current obligations.&rdquo;

Don Pablo&rsquo;s previously filed for bankruptcy back in 2008, and at one point they had reported 120 locations around the country, being&nbsp;one of the biggest fast-casual Mexican restaurants in the U.S.

Restaurants such as Chipotle Mexican Grill, Qdoba Mexican Eats, Moe&rsquo;s Southwest Grill, and Panchero&rsquo;s Mexican Grill have all created an extremely competitive landscape in the fast-casual Mexican segment, while other restaurants including Chili&rsquo;s Grill &amp; Bar and Applebee&rsquo;s Grill &amp; Bar have started to add Mexican product offerings to their menus, which have both added to Don Pablo&rsquo;s recent struggles.

<a href="http://nrn.com/finance/don-pablo-s-files-bankruptcy?utm_source=1851franchise.com&utm_medium=article&utm_campaign=nations-restaurant-news-don-pablos-files-for-bankruptcy-6204" target="_blank" rel="nofollow" target="_blank">Click here</a> to read the full story.

Nation’s Restaurant News: Don Pablo’s Files for Bankruptcy

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The Mexican fast-casual chain becomes the 10th restaurant to file for bankruptcy in the past 11 months. 

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