Photo: MR.WUTTISAK PROMCHOO / Moment / Getty Images
On the Border Mexican Grill & Cantina, a popular chain of restaurants, has filed for Chapter 11 bankruptcy protection. The restaurant chain, owned by Atlanta-based Argonne Capital Group, currently operates 60 locations across the United States. In addition, there are also 20 franchise-owned restaurants.
The decision to file for bankruptcy comes amid a challenging period for casual dining chains. On the Border cited several factors contributing to its financial difficulties, including a decrease in customer dining due to inflation, which has made restaurant prices rise faster than grocery costs. Additionally, the chain has faced increased expenses due to rising minimum wages in many states and has struggled with employee recruitment and retention.
The company also cited 40 underperforming locations, which have since been closed.
The filing indicates that the company is seeking to reorganize its operations and finances to stabilize its business. Argonne Capital Group, which also operates franchises for IHOP, Applebee’s, Krystal, and Stevi B’s Pizza, is managing the restructuring process.
On the Border's bankruptcy filing follows similar moves by other casual dining chains like Red Lobster and TGI Fridays over the past year. Smaller chains, such as Sticky Fingers Rib House, Tijuana Flats, Rubio's Coastal Grill, and BurgerFi. There are also reports that Hooters is struggling and is considering filing for bankruptcy protection.