A RESTAURANT chain’s recent bankruptcy filing has led to a revealing admission from its president about the shock move.
The beloved casual-dining company became the latest to bite the bullet, but there seems to be a plan to address its financial issues.
On the Border has become the fourth chain of its kind to file for bankruptcy in the past year, The US Sun reported.
Others include Red Lobster, TGI Fridays and Buca di Beppo.
On the Border has closed more than a dozen locations recently as it struggles against economic strain and changing consumer trends.
The chain filed for bankruptcy on Tuesday, with as little of half of its 2023 total locations still standing, per the outlet Restaurant business.
Now, the president of On the Border, Chris Rockwood, has made an honest admission as to where the business can go from here, per the Lansing State Journal.
Rockwood said: “This restructuring is the best path forward for On The Border.
“It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.
“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.
“The Company intends to use the (bankruptcy) proceedings to drive operational improvements and pursue a sale of substantially all of its assets.”
This suggests that On the Border plans to emerge from its Chapter 11 filing and address the issues it faces.
Casual-dining chains have struggled recently as consumers look for spots that offer quicker, more convenient service.
In a court filing, it was revealed how the rising costs of the industry have hurt On the Border.
The filing said: “On The Border has been weighed down in recent years by macroeconomic factorsthat have negatively impacted the Company.
“Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in.
“And because of inflationary pressures, restaurant menu prices across the industry have risen significantly faster than grocery and other consumer prices.
“Typically, when labor inflation runs ahead of commodity inflation, restaurant prices tend to outpace grocery pricing.
“As a result, consumers are less inclined to eat out.”
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.Fans of the Mexican chain have taken to social media to express their shock.
One person on Facebook wrote: “No, how could it happen? The only suitable TexMex up North.”
Another person said: “More to come.”
A third suggested that their local On the Border has been struggling post-COVID.
They added: “Always enjoyed On the Border… They had great fresh tortillas and fajitas.
“That location never got back up to speed after COVID.”
As of Wednesday, the company has 66 listed locations on its books, which is less than half of its total at the end of 2023, according to Technomic data.
On the Border is already taking decisive action, closing 40 underperforming locations on February 24.
GettyOn the Border has closed more than a dozen locations recently as it struggles against economic strain and changing consumer trends[/caption] Read More Details
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