Closed! NJ town loses 2 popular restaurants in a week

⭕ TGIFriday and On The Border near the Ocean County Mall are closing

⭕ An employee told NJ 101.5 the restaurant had an issue with its lease

⭕ High food costs, aging facilities, thin profit margins are all issues for restaurants

TOMS RIVER — Two major chain restaurants, including one that's been open for 25 years, are closing their doors.

TGIFridays will close its location on Hooper Avenue on Thursday, according to a person who answered the phone but declined to identify themselves.

NJBiz reported on Feb. 4 that the company sold four of its eight remaining corporate locations in New Jersey in Burington Township, East Windsor, Linden and West Orange to Yadav Enterprises. Its other New Jersey locations are Brick, Linden and Manahawkin.

One worker on Facebook summed up the role the restaurant played in her life in her eight years there.

"I have met some great people along the way including the love of my life! I found out I was pregnant with my second child at Fridays, got engaged at Fridays, and met some lifelong friends that are now my family at Fridays! My children were basically raised at Fridays! I have countless wonderful memories that have all involved TGI Fridays that I will be forever grateful for," she wrote.

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Fewer locations in New Jersey

Less than a half mile away at the Ocean County Mall, Mexican food chain On The Border has already closed its doors after two years in business, according to a sign on the door. OTB was part of a new section of the mall built where Sears once stood that opened in 2022.

It appears the chain closed a number of locations around the country in the past week including in Arizona, Iowa, Massachusetts, New York without explanation.

The closure leaves OTB with just four locations in New Jersey: Mount Laurel, New Brunswick, Paramus and Princeton.

The corporate offices of TGIFridays and On The Border on Tuesday afternoon did not respond to New Jersey 101.5's request for more information.

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What's behind the closures?

New Jersey restauranteur Tim McLoone, whose company McLonne's owns 11 restaurants mostly on the Jersey Shore told New Jersey 101.5 its a tough business for several reasons on a number of fronts. One is the passing of time and whether or not it's worth it financially to rebrand a big chain and spruce up a older location, or to close up.

"We're all facing cost issues right now. Basically, in our industry, if you're doing a great job, you get to keep anywhere from eight to 12% of what you gross. So if you grossed a million dollars in the year, you might get to make $80,000 or $100,000. Over the past five years I would say we have dropped half of that profit. Our costs of payroll went up two to three points, and our cost of goods went up two to three points, if not a little bit more. So if I'm looking trying to make 10% and I just gave away five or 6% I lost 50% of my potential bottom line net."

Payroll eats into the profits as the minumum wage is at $15.49 per hour. Workers who used to start at $6 an hour are now making $15

McLoone says independent restaurants are doing a better job of jumping on trends and making them succeesful.

"If they have a liquor license they're doing a better job with crafted cocktails, doing better jobs with plate presentations. They've all learned from the rest of us who have survived," McLoone said.

Cultural changes have also impacted the restaurants business. One example is the decline of the shopping mall. With less foot traffic there's less potential customers to walk in. McLoone says the busiest time for dinner at his restaurants in 6:30 with most empty by 10:30.

"I've been a lifelong musician. I've said many times I very often on a Saturday night, wouldn't leave my house until 8:30 going to work and then I'd play from 9 to 1 or 9:30 to 1:30 in the morning," McLoone said. "It's all gone. I mean, there's a club scene out there still, but it's not like the kind of thing where your neighborhood restaurant has a band at night and then they close up at two in the morning."

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