On the Border Mexican Grill & Cantina, once a hot spot for Tex-Mex enthusiasts, has in recent years grappled with huge setbacks leading to the closure of numerous outlets. This is the cause of this decline and what this turn of events means for fans of the chain.
Why did the On the Border file for bankruptcy?
On the Border filed for Chapter 11 bankruptcy protection due to several converging issues:
- Declining customer traffic: The chain experienced a noticeable drop in patrons, a trend seen across many casual dining establishments.
- Rising operational costs: Increases in minimum wages and other expenses made it challenging to maintain profitability.
- Staffing difficulties: Retaining workers became increasingly problematic, affecting service quality and operations.
Read more: Well-known distressed apparel retailer closes more stores under Chapter 11 bankruptcy
How many On the Border locations have closed?
In recent times, On the Border has shuttered 40 of its locations. This reduction leaves the chain operating approximately 80 restaurants both domestically and internationally.
Is my local On the Border still open?
With the closure of several locations, it’s understandable to be concerned about your nearby restaurant. The best approach is to visit On the Border’s official website or contact the specific location to confirm its current status.
Read more: Goodbye to Hoonigan – Driver Ken Block’s iconic racing brand declares bankruptcy for this reason
What led to the decline of On the Border?
There are some reasons there is a decline in the On the Border including:
- Economic stress: Inflation and changing consumer consumption habits have impacted many in the casual dining sector.
- Greater competition: The rise of fast-casual Mexican eateries, such as Chipotle, has drawn some consumers away from traditional sit-down restaurants.
- Operational issues: Adapting to high costs, especially in labor and ingredients, has strained the profit of the brand.
Are other restaurant chains facing similar issues?
On the Border is not the only chain to be facing this kind of challenge. Some other chains facing this kind of challenge are:
These brands have faced difficulties due to shifting consumer preferences, economic hardship, and the impact of the COVID-19 pandemic.
What does the future hold for On the Border?
While closures and bankruptcy are enormous setbacks, they are not the end of On the Border. Chapter 11 bankruptcy allows companies to restructure and potentially emerge stronger. The chain’s leadership is likely analyzing plans to react to current market forces, simplify operations, and rebuild a relationship with the consumer base.
Additionally, On the Border’s failures are symptomatic of the larger failures of the casual dining industry. As consumer habits and economic climates shift, the restaurants need to adapt or suffer drops in attendance.
For On the Border fans, knowing local restaurant statuses and dining at open locations can make a difference in these times.
Continue reading:
Popular Subway rival closes locations and files for bankruptcy
Beloved restaurant chain closes more outlets as bankruptcy looms
