Copyright The Street
Another restaurant has closed its doors for good. While restaurant closures have surged in recent years, driven by economic uncertainty, rising costs, and slowing consumer spending, this case involves more than just the typical financial troubles. Despite its prime location along San Antonio’s famous River Walk and opening less than seven months ago, Luz Roja Tex-Mex, located at 419 N St. Mary’s Street, has permanently closed. According to its still-active website, Luz Roja described itself as a Mexican bar and restaurant “where San Antonio’s Tex-Mex heritage meets crafted flavors and modern flair.” The restaurant emphasized traditional cooking methods, including the art of tallow cooking and sustainable sourcing, promising ” a dining experience like no other.” Luz Roja’s owner under FBI investigation Luz Roja’s closure seems tied to a deeper issue. The restaurant’s owner, Devin Elder, is reportedly under FBI investigation related to alleged money laundering and wire fraud. Elder, who opened Luz Roja in March 2025 inside the Travis Building overlooking the River Walk, is also the former principal of DJE Texas Management Group, the company at the center of the federal probe. He currently faces multiple investor lawsuits filed in the Bexar County District Court. Court records dating back to April show that Luz Roja LLC owes more than $69,000 in unpaid bills to local contractor Hermes Group. A former employee told the San Antonio Business Journal that Luz Roja Tex-Mex officially closed on October 10, giving staff only five days’ notice. “I have not seen or heard from Devin since April,” said the former employee to the publication. “They were putting $0 into the restaurant… We were just getting into our busy season when he decided to pull the plug. Most likely due to the debt to the vendors and the bank that took over the Travis building.” This summer, Boston-based commercial real estate firm UC Funds assumed ownership of the Travis Building in a foreclosure sale for $16.7 million after DJE defaulted on its $18.25 million loan. The restaurant industry struggles Since the Covid pandemic, many chains have been hit by rising food, labor, and rent costs, along with reduced consumer spending and traffic, slimming their chances of survival. According to the U.S. Bureau of Labor Statistics, around 17% of new restaurants close within their first year. Even major chains haven’t been spared. in 2025 alone, Red Lobster, TGI Fridays, Starbucks (SBUX), and Denny’s (DENN) have all faced mass closures and layoffs, shrinking their national footprints. “Economic fragility is expected to continue to weigh heavily on consumer behavior, with uncertainty about the potential impact of tariffs on costs, weak job growth trends and the specter of stagflation further complicating operators’ efforts at forward planning,” noted Bank of America in its State of the Restaurant Industry 2025 report.
