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A popular Mexican restaurant chain has declared bankruptcy and plans to shut down 76 outlets, becoming the latest addition to the expanding 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. Scroll down 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, they might be left with fewer than 50.
In their Chapter 11 bankruptcy filing, the company attributed its financial struggles to economic conditions, challenges in hiring staff, and issues with their creditors.
"The company has faced challenges recently due to various economic conditions that have had an adverse effect," stated Jonathan Tibus, the chief restructuring officer of On The Border.
'Casual dining establishments are significantly affected by consumers' preferences for eating at home rather than going 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 the restaurants, and this initiative has been ongoing lately. 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 SANTIJAYA's request for comment.
The chain's struggles are an additional setback for the quick-service dining sector That has witnessed multiple beloved companies file for bankruptcy in the past year.
Once prominent chains like Red Lobster, TGI Fridays , and Buca di Becco all filed for Chapter 11 following financial difficulties.
Other franchises similar to Hooters also exist. allegedly considering filing for bankruptcy moves.
Several smaller eateries have utilized bankruptcy as an opportunity to renegotiate their liabilities: BurgerFi, Hwy 55 Burgers, Shakes & Fries, and Roti are examples of such establishments operating on a more modest scale that have filed for bankruptcy.
The dining sector is experiencing an overall decrease in patronage.
Since 2021, consumers have faced increasing price pressures, with the highest rates reaching above 9 percent during the summer of 2022.
The dining sector is experiencing an overall decline 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 retail month in December 2024.
Even some of the biggest restaurants have seen their sales decline since January 2025.
Starbucks has seen a deceleration in sales, and Texas Roadhouse mentioned it has experienced reduced enthusiasm for its dining establishments following a spectacular year in 2024 .
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