It’s the little guys that feel it first when it comes to economic decline. The relatively small but well loved Tex-Mex restaurant, On the Border Mexican Grill & Cantina, has filed for bankruptcy, adding to the ever growing last of failing businesses in the US.
The chain has a reported 80 locations in the US and internationally. This doesn’t put it in the big leagues with fellow failing businesses such as TGI Fridays and Hooters, but it’s still significant. Previously, On the Border Mexican Grill & Cantina closed the doors on 40 locations, preluding its bankruptcy filing.
Now, it will enter into administration. Chapter 11 bankruptcy is a last-ditch effort by a company to restructure and reorganize. It allows the doors to stay open and staff to be paid for a little while longer while they see what can be done to keep operations going.
However, the economic market in the US is bleak right now. It would be a surprise to see On the Border Mexican Grill & Cantina pull itself out of bankruptcy.
Bankruptcy Grim Reaper Pulling Up To Many Fast Food Drive-Thrus
On the Border Mexican Grill & Cantina isn’t the only restaurant chain facing bankruptcy. Across the US, both big and small eateries are feeling the post-pandemic pinch. Many of them took out huge loans during Covid-19, expecting to be able to pay them back when customers returned, but they never did.
Money is still tight for most, and this is reflected in the way people treat themselves. Heading out for a meal used to be manageable at least once a week. But, now, this has dropped to once a month for many. This huge drop in footfall has led to places like On the Border Mexican Grill & Cantina being forced into bankruptcy.
Even icons of the US food industry are suffering. Food places like Hooters, TGI Fridays, and Red Robin are all shutting up shops and facing financial ruin. The economic crisis in the US isn’t faring well for food joints. People are choosing to eat in places that offer a more bespoke and unique experience over the copy-paste microwaved rubbish chain restaurants sell.
If you only eat out once a month, it needs to be a special experience.
