On The Border is on the brink in NJ and across the country

If On The Border is one of your favorite fast casual sit-down restaurants you might want to make a pilgrimage soon. There’s writing on the wall that doesn’t look good for the chain that started in 1982.

On March 5 they filed for Chapter 11 bankruptcy protection. Before that they closed their Toms River location which was particularly surprising since it had opened only three years ago. Also this year two Long Island locations closed

Was it the criticism thrown at it for years by Men’s Health which called On The Border the unhealthiest chain in the Mexican category? They pointed out how an enchilada dinner ran 1,600 calories and how the desserts were typically over 1,000.

No, of course that criticism wasn’t why. No one interested in going out for Mexican food is counting calories that night. It’s the same thing that’s driven other fast casuals to file bankruptcy in the past year including TGI Fridays, Red Lobster and Hooters. Inflation is crushing business because menu prices are rising even faster than grocery prices so people are dining out less.

They also cite rising minimum wages in many states. New Jersey’s minimum wage is $15.49 per hour, the sixth highest in the nation. The chain says it can’t keep up. On The Border says it has $19 million in debts.

Chapter 11 bankruptcy doesn’t mean it’s the end of the line for the Tex-Mex chain. Company president Chris Rockwood said in a press release the restructuring allows them to “address several financial and operation challenges and to emerge stronger and re-focused on our growth.”

But it does mean more locations could close, and the fate of one of the four remaining On The Border New Jersey locations is up in the air. That’s the Mount Laurel one. It’s on a to be determined basis. The other three left in New Jersey are Princeton, Paramus and New Brunswick.