Reintroduced in 2016, Casa de las Banderas is located in the Mexico section near El Sombrero and is another one of the park's indoor restaurants. The restaurant features indoor, air-conditioned seating and outdoor tables. Also located outside is a walk-up bar.

When the park opened in 1961, this location was an El Chico restaurant. According to D Magazine, despite Six Flags only being open a handful of months each year, the location grossed record-breaking profits. In the early 2000s, the location was known as Casa de las Banderas Restaurante before being converted into an interactive Brunch with Bugs & Friends dining experience in 2006. Part of the restaurant's former patio area is now occupied by the El Sombrero attraction.