It used to be known as Margaritaville, but when singer Jimmy Buffett took away its tall shaker of salt by threatening a lawsuit over the copyrighted name the multi-level restaurant in the Factory Square complex settled into Mystic as Margaritas, and stayed there for nearly four decades.

I wish there were a woman to blame, as Buffett would say, but it’s most likely the gentrification of Mystic that now is leading to the Mexican restaurant’s closure, reportedly on Dec. 19. The closure was first reported by The Connecticut Scoop.

According to a news report, the 8,500-square-foot Margaritas Mexican Restaurant at 12 Water St. in Mystic was one of 24 in a nationwide chain. The chain, initially called Margaritaville, started in Concord, N.H., but soon expanded to a new space in Mystic after being denied approval for a free-standing structure that was deemed not to fit in with the area.

Started by Connecticut resident John Pelletier, it may have been the best Mexican restaurant in the area when it opened, but that didn’t mean much at the time as South-of-the-Border fare was pretty forgettable back in the 1980s. Now, a whole new generation of Mexican restaurants such as Manana’s in Groton, Rio Salado in Mystic, Mi Casa in New London and La Llarona in Niantic have made the scene much more vibrant than before.

Still, I have fond memories of going out to Margaritas with my parents as a young man, and it later became a spot that my family could agree on -- and afford -- whenever we ate out at something fancier than Friendly’s. There was something about the lively atmosphere, consistently good service and the steaming plates of delicious food at a very fair price that always hit the spot.

It wasn’t a Mexican restaurant that tried to be overly authentic, but it had just enough of a flair for traditional cuisine and an understanding of the American palate to cater to just about anyone, including children. Margaritas was inducted into Connecticut Magazine's Best Restaurants Hall of Fame in 2020 based on its Mexican fare.

As a vegetarian, I always appreciated Margaritas’ rendition of the chili relleno, a broiled stuffed pepper with melted cheese that has become my staple at Mexican restaurants. If a restaurant can’t do this simple dish well, and most of them can’t, I will be reluctant to return.

Margaritas also had a vibrant bar scene, and in the past few years I used to go occasionally with friends to compete in Trivia Nights, which were always a lot of fun and well attended.

I don’t know for sure why Margaritas is leaving, but I suspect it’s at least partially because of the high cost of rent in the downtown Mystic area. That was the case with another Mystic staple, Bank Square Books, which recently relocated to a small shopping center off Route 1 on the Stonington side of the Mystic River.

Now I am told the Bank Square space is about to be filled by a new business not yet disclosed. One can only speculate that it will be something very upscale in keeping with Mystic’s new reputation as one of the busiest shopping meccas on the East Coast.

Anthony Ackil, chief executive officer of the Margaritas restaurant chain, didn’t say much when a Hearst Connecticut Media reporter contacted him Wednesday to ask why the Mystic restaurant is closing, only admitting he could "no longer make it work." Still, he allowed the possibility of another Margaritas opening somewhere in Connecticut as the chain is exploring possibilities.

The closing of Margaritas in Mystic leaves only one other Connecticut location for the chain restaurant, in East Hartford, according to an article last week in CTInsider. And it leaves an even bigger hole in the increasingly sophisticated Mystic dining scene that could use a few more restaurants that cater to families on a budget.

Lee Howard is The Day’s business editor. To reach him, email l.howard@theday.com.