Beloved Mexican chain confirms it will close down 70 locations just weeks after suffering fatal blow
A POPULAR Mexican restaurant chain has begun shuttering locations after financial woes.
Longtime customers will soon have to head elsewhere for some of their favorite food and drinks.
Earlier this month, On the Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy citing over $19 million in debt in court documents.
On the Border attributed its difficulties to current economic trends, labor shortages, and underperforming restaurants.
This was further emphasized by Jonathan Tibus, restructuring officer for OTB Holdings.
"On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the company," Tibus stated in the documents.
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"Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in."
"And because inflationary pressures, restaurant menu prices across the industry have risen significantly faster than grocery and other consumer prices," Tibus continued.
"As a result, consumers are less inclined to eat out."
Those consumer challenges have been shown throughout the years as only half of the restaurants On the Border had in 2010 now remain today.
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As a result of the bankruptcy, it's now in the process of axing at least 70 more locations.
At least 24 states will be affected, including the following:
- Arizona
- Arkansas
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kansas
- Maine
- Maryland
- Massachussetts
- Michigan
- Mississippi
- Missouri
- New Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Texas
- Virginia
Some have already been shuttered as of February, like a location in Phoenix, per ABC affiliate KNXV.
Other leases for restaurants are currently in the process of being offloaded and will likely close for good sometime soon.
On the Border's president, Chris Rockwood, noted that the chain does plan to restructure and emerge from bankruptcy with a trimmed footprint and move forward in serving diners.
"This restructuring is the best path forward for On the Border," he told the Lansing State Journal.
"It allows us to address several financial and operational challenges and emerge stronger and refocused on growth."
Restaurant closures in 2024
BOSSES at major dining chains have announced a series of restaurant closures. The U.S. Sun has compiled a list of the chain's affected.
- Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina, and Sacramento, California, have closed.
- Mod Pizza: Bosses dramatically shuttered 27 shops in April, including some in the state of California.
- Frisch's Big Boy: Restaurant chiefs confirmed the closure of a restaurant in Covington, Kentucky in April.
- Outback Steakhouse: The chain will shutter 41 'underperforming' locations this year.
- Two Bucks: Four restaurants in Ohio closed in April.
- Chili's: A restaurant in Port Arthur, Texas, has shut permanently as well as one in Irvine, California, and one in Pittsfield, Massachusetts.
- Friendly's: Bosses confirmed an establishment in Ronkonkoma, Long Island will close.
- Pizza Hut: A restaurant in Glen Falls, New York, closed at the end of March, followed by four in Ohio in June and 15 in Indiana. This was followed in July by a bankruptcy filing from its parent company which announced the closure of 150 locations.
- Carl's Jr.: The first Boise, Idaho location has closed.
- In-N-Out: An Oakland location closed earlier in the year due to crime in the area.
- Cheesecake Factory: The chain is set to shutter a location in Memphis, Tennessee in July.
- Applebee's: Announced the closure of between 25 and 35 locations this year.
- Red Lobster: The seafood chain filed for bankruptcy in May and shuttered over 100 locations.
- Taco John's: Shuttered a restaurant in Minnesota and put the building up for sale in May.
- Frisco's Chicken: The poultry restaurant shuttered all of its locations over the summer
- Rubio's Coastal Grill: Has announced the closure of 48 locations in California after filing for bankruptcy.
- Burger King: Shuttered a location in California in June after 30 years.
- Foster's Freeze: Shuttered a location in California after five decades in business due to financial struggles.
- Chicken Salad Chick: After nine years the restaurant shuttered one location in Jacksonville, Florida, with no reason given.
- México Lindo: The New York City-based restaurant announced its final day after 52 years and finally shuttered its doors for good on July 31.
- American Dream Pizza: Closed all of its locations in Oregon in July.
- Tender Greens: The Southern California-based chain filed for bankruptcy.
- Lefty's Famous Cheesesteaks, Hoagies, & Grill: Abruptly shuttered 18 locations in July due to a family feud.
- Firehouse Subs: Shuttered a location in the Tri-Cities area of Washington State over the summer citing "unforeseen circumstances"
- Taco Time: The Taco Bell rival shuttered a location in Seattle after 50 years following a death in the franchise owner's family.
- Burgerim: Shuttered a location in Burlington, Massachusetts in July, reigniting bankruptcy fears from 2020.
- Denny's: The chain has shuttered over 40 locations so far this year with the owner of the one outlet blaming vandalism.
- Starbucks: The chain shuttered one of its most iconic locations in New York City after almost three decades with fans blaming crime. It also lost a location in Seattle.
- Subway: In August, the sandwich chain shuttered over 20 locations across the US and Canada after a franchisee lost money after being a victim of fraud.
- IHOP: A restaurant in New Hampshire shut its doors after 24 years, leaving four locations in the state.
- Switchback Coffee Roasters: The popular chain filed for bankruptcy in August after over a decade in business.
- Jimmy John's: The sandwich shop chain shuttered a location in Nevada on August 19 after 12 years citing overexpansion issues.
- KFC: Closed the remaining three locations in Rockford, Illinois all on the same day on August 19. In total, it closed six locations across four cities in Illinois.
- Rusty Bucket: The chicken shop chain confirmed it would officially leave Florida as it announced a handful of closures including in Sarasota and Ohio.
- Buca di Beppo: The Olive Garden rival abruptly shuttered 44 locations across five states before filing for bankruptcy.
- Red Robin: Announced the closure of its Ashburn, Virginia location on August 25 after 15 years in business.
- Noodles & Company: Shuttered dozens of locations due to their contribution to around $2 million worth of losses.
- Shoney's: The classic American-style food chain founded in 1947 officially exited Ohio after three decades of business as it reduced its operational footprint.
- Homegrown: The sandwich chain based in Seattle announced the closure of 10 locations leaving 150 employees in the lurch.
- World of Beer: Filed for bankruptcy after closing 14 outlets.
- Arby's: The chain announced a number of closures this year including in Lexington, Kentucky, Akron, Ohio,
- Uno Pizzeria & Grill: Shuttered a location in New Jersey in July, leaving just two in the state, followed by the closure of a Baltimore location in August.
- Hart House: Shutterd all four locations in California in September just two years after the vegan fast-food restaurant chain was launched by actor and comedian Kevin Hart.
"The support we've received from our vendors and lenders will help ensure that we can complete the sale process quickly and efficiently while remaining focused on our employees and guests," he added.
"The company intends to use the proceedings to drive operational improvements and pursue a sale of substantially all of its assets."
Of course, On the Border is one of several restaurants facing struggles as a result of economic conditions.
LOBSTER LOSS
Red Lobster notably filed for bankruptcy last May and shuttered over 100 locations during the proceedings.
While it had recorded losses of $76 million at one point in 2023, it was the Ultimate Endless Shrimp promotion that pushed things over the edge for the casual seafood chain.
Initially, the deal was highly profitable, but Red Lobster underestimated how much shrimp customers could eat for the one-time price point of $20.
Even raising it to $25 didn't stop the bleeding.
In September, Red Lobster emerged from bankruptcy with $60 million in new funding to support a long-term business plan and is now making major changes under new CEO Damola Adamolekun.
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TGI Fridays also found itself in a similar position in November, axing around 100 restaurants and initiating a "long-term" restructuring plan.
Hooters is also suspected to file for bankruptcy soon after closures in recent years.