Red Mesa Cantina closes permanently after 16 Years in downtown St. Pete

ST. PETERSBURG, Fla. - A staple of the downtown St. Petersburg dining scene has served its last taco. Red Mesa Cantina closed permanently this week after 16 years in business.

Downtown St. Pete restaurant closure

The backstory:

This closure came as a surprise to many customers who stopped by Tuesday night and found a "permanently closed" sign taped to the restaurant front door.

Rhoda R. and her husband, Michael, were headed to dinner with another couple when they discovered the news.

"I’m always disappointed when I see a business that’s locally owned, that’s not a chain, close down," Rhoda said.

This week, Red Mesa Cantina’s parent company filed for bankruptcy.

Past wage theft investigation

Dig deeper:

The closure also brought renewed attention to a 2023 U.S. Department of Labor investigation that recovered more than $190,000 after investigators found employees had been denied tips. The restaurant later said it terminated the outside firm responsible for handling that portion of its business.

"All that I heard was that they were skimming some of the tips," Rhoda said. "We kind of boycotted after that."

Employees packed equipment into a Red Mesa van Tuesday night as customers peered through the restaurant’s windows.

Longtime St. Pete resident Connie Whitehead was headed into the restaurant for a midweek margarita when she found out it had closed.

Community reacts to loss of local favorite

What they're saying:

"I was disappointed to hear," Whitehead said. "They’ve been so involved in our downtown charities for years."

In a farewell Facebook post, Red Mesa thanked customers for 16 years of support.

"The lovely courtyard and the night lights, and the fun with friends and stuff like that," Whitehead said.

In a statement sent to FOX 13, Red Mesa Cantina and Red Mesa Events blamed a tough economy, hurricane impacts and the year-long closure of Tropicana Field for the shutdown.

"Restaurants and events are luxuries that, for many in the community, have become difficult to prioritize," the company said.

"Their costs are rising, just like everybody else’s, so they have to charge for it. People are really watching their spending," Rhoda said.

What's next:

The company said the closure applies only to Red Mesa Cantina and Red Mesa Events. Red Mesa Restaurant, Red Mesa Mercado and Red Mesa Mercado West remain open.

Company officials say they’re working with customers who had weddings, parties and other events scheduled at the restaurant.