A POPULAR restaurant brand is poised to save On the Border after its bankruptcy filing – and a massive menu takeover is coming.
On the Border has been saved by its knight in shining armour, in a time when the dining sector is struggling more than ever.
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The restaurant business is struggling with higher food costs and stretched customer budgets.
On the Border seemed set to go the way many have done recently, and fall deeper into the depths of bankruptcy.
But Restaurant Dive reports that Pappas Restaurants has officially plucked On the Border from bankruptcy, with the transaction set to close in a few weeks subject to court approval.
The acquisition will look to improve several aspects of the On the Border experience for customers.
Mike Risso, CEO of Pappas Restaurants, said: “On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future.
“Our shared Texas roots and passion for hospitality make this a natural fit.”
The press release announcing the move continues to outline Pappas’ plans, to improve the guest experience while “honoring the brand’s history and fan-favorite offerings”.
Pappas aims to use its experience and apply its “proven operational model and commitment to quality and hospitality to help strengthen and modernize On The Border locations.”
WHAT DOES THIS MEAN FOR YOU?
Primarily, this means that On the Border will soon be back with a new feeling.
Pappas Restaurants has over 80 spots across the US, and has purchased an additional 60 On the Border locations to continue its expansion.
Pappas has recently diversified for itself, expanding into new locations like airports and trying out new concepts.
The incoming owner offers a menu of fajitas and hand-shaken margaritas, with a focus on atmosphere within the locations.
Pappas hopes to bring new touches to On the Border, from its menu to the way customers experience it when inside.
Pappas Resturant does have a history with On the Border, too, having previously provided $10 million in debtor-in-possession financing.
This was to fund the brand throughout the Chapter 11 process, and perhaps position itself as the leading bidder if things went sideways.
On the Border closed 40 underperforming locations in February citing financial burdens.
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.
Labor shortages have also been noted as one of the key issues the chain faced.
It led to the chain filing for bankruptcy protection in March.
At its height, On The Border had 150 units in the U.S. and internationally.
Today, On the Border operates in 18 states and has 20 further franchised locations in the US and South Korea.
The takeover is first reliant on court approval before anything can be done, and there is not much idea what the timeline is after that.
But On the Border’s locations look to have been saved from certain death, a fate that not many companies can attest to in this current economic environment.
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