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FURTHER READING: Kohl’s plans to close down 27 stores this weekend… check out the complete list here
A popular Mexican restaurant chain has declared bankruptcy and plans to shut down 76 outlets, adding another name to the ever-growing roster of casual dining establishments facing collapse.
At On the Border Mexican Grill & Cantina – famous for its cheese dip, tacos, fajitas, and enchiladas –
declared bankruptcy earlier this month
.
The Tex-Mex restaurant chain has now disclosed the scale of its store reductions spanning 24 states.
Browse further to view the complete list including the addresses.
Several restaurants have already shut down, and the remaining ones are set to close soon. With 119 outlets at the beginning of the year, the firm might be left with fewer than 50 locations.
In their Chapter 11 bankruptcy filing, the company cited economic conditions, challenges in hiring staff, and issues with creditors as the primary reasons for their financial struggles.
“The company has faced challenges in recent times due to various economic conditions that have adversely affected the business,” stated Jonathan Tibus, the chief restructuring officer of On The Border.
‘Casual dining establishments are significantly affected by customers’ preferences for eating at home rather than dining out.’
The number of the company’s 2,800 employees who will be impacted remains uncertain.
In 1982, On the Border initially launched with just one cantina and was acquired by Brinker International after twelve years.
Brinker International plans to focus on franchising restaurants and has been doing so recently.
The firm stated it had 110 company-owned stores.
and nine U.S. franchise locations.
In 2007, the venture expanded globally with openings in South Korea.
“On the Border” did not reply to SANGGRALOKA’s request for comment.
The chain’s struggles are
an additional setback for the quick-service dining sector
That has witnessed multiple beloved franchises file for bankruptcy in the past year.
Once mighty establishments such as Red Lobster,
TGI Fridays
, and Buca di Becco all filed for Chapter 11 following financial difficulties.
Other franchises similar to Hooters alsoexist.
allegedly considering filing for bankruptcy
moves.
Several small eateries have turned to bankruptcy as a means to renegotiate their financial obligations: BurgerFi, Hwy 55 Burgers, Shakes & Fries, and Roti are among the smaller-chain establishments that have filed for bankruptcy.
The dining sector is experiencing an overall decrease in patronage.
Since 2021, consumers have faced increasing price pressures, with inflation reaching peaks of more than 9 percent during the summer of 2022.
The dining sector is experiencing an overall decrease in patronage.
Retail executives have continually lauded “resilient” American shoppers during earnings calls. However, recent data on foot traffic has begun to concern leading industry figures.
Many Americans have reduced their non-essential expenses following a scorching holiday shopping season in December 2024.
Even some of the biggest restaurants have seen their sales slow down since January 2025.
Starbucks has seen a deceleration in sales, and Texas Roadhouse mentioned it has experienced similar issues.
shown reduced enthusiasm for its dining establishments following a spectacular year in 2024
.
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