A national Tex-Mex chain is closing restaurants. Will any in the Charlotte area shut down?
A national Tex-Mex restaurant chain is closing stores across the United States amid bankruptcy proceedings, including a Gastonia location in North Carolina.
On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protection in March amid labor shortages, inflation, “an underperforming restaurant footprint” and “creditor enforcement actions,” according to court documents.
“This restructuring is the best path forward for On The Border,” Chris Rockwood, the restaurant’s president, said in a news release. “It allows us to address several financial and operational challenges and emerge stronger and refocused on our growth.”
Why are On the Border restaurants closing?
The company had closed 40 “non-performing” stores on or shortly before Monday, Feb. 24, and many others were expected to close, as the restaurant chain moves away from “rejected leases” that are “likely to continue to drive losses.”
Where possible, according to court documents, employees of the closed stores were relocated, and mid-level management was reorganized.
Here’s how the closures will affect the Charlotte area.
Which On The Border restaurants will close?
According to its website, On The Border operates more than 60 restaurants across about 20 states.
Three North Carolina restaurants — in Charlotte on Northlake Commons Boulevard, in Concord on Concord Mills Boulevard and in Fayetteville — remain open.
Two North Carolina locations, which are now closed, were listed among the 77 “rejected leases” in court documents:
- Cary: 1102 Walnut St.
- Gastonia: 2409 E. Franklin Blvd.
- Charlotte: 10710 Providence Road was also listed, though it closed a few years ago.
Of the $25.3 million spent on leases in 2024, about 47% was related to underperforming stores, according to court documents.
Charlotte-area Tex-Mex restaurants
In addition to On The Border, Charlotte-area diners have several options for Tex-Mex food.
In Gastonia, Tex-Mex Back Road Grill is located on Union Road, and Moe’s Southwest Grill has a location on East Franklin Boulevard.
Additional Charlotte Tex-Mex options include Superica, Chuy’s and Paco’s Tacos, which recently announced an expansion to Fort Mill.
National chain restaurants file for bankruptcy
On The Border is the latest national chain to close restaurants amid bankruptcy.
The popular seafood restaurant Red Lobster closed dozens of restaurants last year, including in North Carolina, The News & Observer previously reported. Charlotte-area locations in Pineville, Matthews and Concord remain open, according to the online store locator.
Red Lobster announced in September it would be acquired by RL Investor Holdings LLC, an entity backed by Fortress Investment Group, as part of its Chapter 11 plan.
The American chain TGI Fridays filed for Chapter 11 bankruptcy protection in November 2024. The Steele Creek Charlotte location on Tryon Street was closed to make room for a bank.
“The primary driver of our financial challenges resulted from COVID-19 and our capital structure,” Rohit Manocha, the executive chairman of TGI Fridays Inc., said in a news release. “This restructuring will allow our go-forward restaurants to proceed with an optimized corporate infrastructure that enables them to reach their full potential.”
This story was originally published March 11, 2025 at 6:00 AM.
