Sausalitos is closing branches in Bavaria: 33 locations are already closed!

Sausalitos is closing branches in Bavaria: 33 locations are already closed!

The popular restaurant and cocktail bar chain Sausalitos has suffered a major blow and is facing sweeping changes. A bankruptcy filing was filed in March 2025, which is not exactly ideal in the middle of the peak tourist season. The company has long been a popular destination for its Mexican-American food and cocktails, but recent developments are now casting dark shadows over the brand's future. Loud Mercury Sausalitos closes numerous locations in Germany. While there were 46 branches at the beginning of January 2024, there are currently only 17. There are currently six remaining locations in Bavaria, three of which are in Munich: Pasing, Sonnenstraße and Tal. There are also branches in Augsburg, Nuremberg and Regensburg.

Particularly sad news reached the catering scene in Passau and Landshut, where the branches had to close permanently. These decisions were announced via the respective restaurants’ Instagram pages. At the moment it is unclear whether there is a risk of further closures in Bavaria. What will happen next for the employees at the closed locations also remains uncertain. The company has not yet been available for further information.

Causes of the crisis

What are the reasons for this gradual decline? BR states that the decline in guest numbers is related to the corona pandemic and a long-term economic weakness in Germany. The provisional insolvency administrator, Michael Schuster, is now trying to maintain operations and is actively looking for an investor who could bring fresh capital into the chain.

Another challenge was the changing behavior of customers, who were often reluctant to go to restaurants after the lockdowns. The introduction of regulations such as the mask requirement also resulted in fewer guests. The reduced VAT, which was temporarily reduced to 16%, cannot compensate for the shortfalls, as the regular rate of 19% applies again from January 1, 2024. The sales level of many restaurateurs in Germany still no longer reaches the levels before the pandemic.

A look into the future

This is a drastic change for the Sausalitos group. The lack of revenue has not only put a strain on the chain's operations, but has also affected more than 1,000 employees. However, these are covered by insolvency money until the end of May, which at least offers some relief in the current situation. Franchisee-operated locations are not directly affected by the bankruptcy, which could bring hope for some businesses.

The story of Sausalitos, which began in Ingolstadt in 1994, is therefore overshadowed by an uncertain fate. Company founder Thomas Hirschberger opened the first restaurant and sold the chain to investors in 2014. At that time the chain seemed to be firmly established and very popular, but now it is fighting for survival. Whether Sausalitos can emerge from this crisis remains to be seen, but it's clear that it's a rude awakening for many of the chain's fans.