A national Tex-Mex chain is closing restaurants. Will any in the Triangle shut down?
A national Tex-Mex restaurant chain is closing stores across the United States amid bankruptcy proceedings.
On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protection in March amid labor shortages, inflation, “an underperforming restaurant footprint” and “creditor enforcement actions,” according to court documents.
“This restructuring is the best path forward for On The Border,” Chris Rockwood, the restaurant’s president, said in a news release. “It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.”
Why are On the Border restaurants closing?
The company had closed 40 “non-performing” stores on or shortly before Monday, Feb. 24, and many others were expected to close, as the restaurant chain moves away from “rejected leases” that are “likely to continue to drive losses.”
Where possible, according to court documents, employees of the closed stores were relocated, and mid-level management was reorganized.
Here’s how the closures will affect the Triangle.
Which On The Border restaurants will close?
According to its website, On The Border operates more than 60 restaurants across about 20 states.
Three North Carolina restaurants in Charlotte, Concord and Fayetteville remain open.
Two North Carolina locations, which are now closed, were listed among the 77 “rejected leases” in court documents:
- Cary: 1102 Walnut St.
- Gastonia: 2409 E. Franklin Blvd.
With the Cary location closed, there are no On The Border restaurants in the Triangle.
However, locals can still find classic Tex-Mex dishes at Superica at Fenton, a restaurant owned by chef Ford Fry, who grew up in Texas. Another option is Chuy’s on Parkside Main Street. It’s a big chain, but it started in Austin.
Of the $25.3 million spent on leases in 2024, about 47% was related to underperforming stores, according to court documents.
National chain restaurants file for bankruptcy
On The Border is the latest national chain to close restaurants amid bankruptcy.
The popular seafood restaurant Red Lobster closed dozens of restaurants last year, including in Durham and Cary, The News & Observer previously reported. The Raleigh store on Old Wake Forest Road is still open, according to the online store locator.
Red Lobster announced in September it would be acquired by RL Investor Holdings LLC, an entity backed by Fortress Investment Group, as part of its Chapter 11 plan.
The American chain TGI Fridays filed for Chapter 11 bankruptcy protection in November 2024.
“The primary driver of our financial challenges resulted from COVID-19 and our capital structure,” Rohit Manocha, the executive chairman of TGI Fridays Inc., said in a news release. “This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”
This story was originally published March 11, 2025 at 6:00 AM.
