Another dining chain is saying goodbye to dozens of locations—will your go-to spot survive?
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A beloved restaurant chain is closing dozens of locations, leaving longtime customers disappointed.
Rising costs, shifting dining habits, and financial challenges have forced the company to scale back its footprint.
With closures set to impact multiple states, many are wondering what this means for the future of dining out.
Higher labor costs, inflation, and a shift toward home-cooked meals have led to declining sales.
On the Border cited these factors as key reasons behind the decision to shut down multiple locations.
Jonathan Tibus—restructuring officer for OTB Holdings—said, "On The Border has been weighed down in recent years by macroeconomic factors that 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. As a result, consumers are less inclined to eat out." Tibus continued.
Read more: This iconic restaurant is on the brink—can it be saved?
Some locations have already shut down, while others are in the process of winding down operations.
A restructuring plan is in place to focus on high-performing locations and improve financial stability.
"This restructuring is the best path forward for On the Border," Rockwood stated.
The goal is to emerge stronger and more competitive in the evolving restaurant landscape.
Read more: 15 beloved restaurant chains that could vanish in 2024—Is your favorite at risk?
More restaurants are downsizing, shifting to drive-thru models, and focusing on digital ordering.
Some are restructuring to stay financially stable in an increasingly competitive market.
Have you been affected by the On the Border closures? Do you have a go-to dish you'll miss? Or perhaps you have insights on how the restaurant industry can adapt to these challenging times? Share your thoughts and experiences in the comments below.
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Rising costs, shifting dining habits, and financial challenges have forced the company to scale back its footprint.
With closures set to impact multiple states, many are wondering what this means for the future of dining out.
Why are locations shutting down?
Economic challenges have made it difficult for many restaurants to stay afloat.Higher labor costs, inflation, and a shift toward home-cooked meals have led to declining sales.
On the Border cited these factors as key reasons behind the decision to shut down multiple locations.
Jonathan Tibus—restructuring officer for OTB Holdings—said, "On The Border has been weighed down in recent years by macroeconomic factors that 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. As a result, consumers are less inclined to eat out." Tibus continued.
Read more: This iconic restaurant is on the brink—can it be saved?
Which locations are closing?
At least 70 locations across 24 states are set to close.Some locations have already shut down, while others are in the process of winding down operations.
What’s next for the brand?
Despite the closures, On the Border's president, Chris Rockwood, remains hopeful about the future.A restructuring plan is in place to focus on high-performing locations and improve financial stability.
"This restructuring is the best path forward for On the Border," Rockwood stated.
The goal is to emerge stronger and more competitive in the evolving restaurant landscape.
Read more: 15 beloved restaurant chains that could vanish in 2024—Is your favorite at risk?
Other major restaurant chains shutting down locations in 2024
- Cracker Barrel – Locations in Medford, Oregon; Columbia, South Carolina; and Sacramento, California have closed.
- Mod Pizza – The company abruptly shut down 27 stores, including multiple locations in California.
- Outback Steakhouse – The brand plans to close 41 underperforming locations this year.
- Red Lobster – Over 100 locations have been shuttered after the company filed for bankruptcy.
- Chili’s – Restaurants in Port Arthur, Texas; Irvine, California; and Pittsfield, Massachusetts have permanently closed.
- Applebee’s – The chain has announced plans to shut down between 25 and 35 locations in 2024.
- Friendly’s – A Ronkonkoma, Long Island location is closing after decades in business.
- Pizza Hut – A Glen Falls, New York location closed in March, followed by several in Ohio and Indiana, with 150 total closures expected due to bankruptcy.
- Burger King – A California location shut down in June after 30 years.
- Cheesecake Factory – A Memphis, Tennessee location is set to close in July.
- IHOP – A New Hampshire restaurant shut down after 24 years, leaving only four locations in the state.
- Jimmy John’s – A Nevada location was closed in August due to overexpansion issues.
- KFC – The company shut down six locations across four cities in Illinois, including the last three Rockford locations on the same day.
- Denny’s – More than 40 locations have closed this year, with some shutdowns linked to vandalism and declining foot traffic.
What this means for the restaurant industry
The closure of these locations reflects larger industry trends.More restaurants are downsizing, shifting to drive-thru models, and focusing on digital ordering.
Some are restructuring to stay financially stable in an increasingly competitive market.
Read next: Is your go-to diner shutting down? America’s beloved chain to close more locations—here’s what’s happening
