Pappas Restaurants, a 44-year-old Tex-Mex chain, announces an abrupt closure of all company-owned On The Border Mexican Grill & Cantina locations nationwide, including the chain’s last two New Jersey restaurants in Princeton and Mount Laurel.
As per NJBiz, the shut down came a year after Texas-based Pappas Restaurants acquired the chain for nearly $16 billion after it filed for Chapter 11 bankruptcy.
Nearly 30 company-owned locations will close across the country, while franchise-operated restaurants in South Dakota, Nevada, California, and South Korea will continue to operate independently.
The company released a statement, which read, “This decision follows a thorough evaluation of the business and was not made lightly. We are currently evaluating the future of the On The Border brand and exploring a range of strategic options.”
“Our immediate focus is on supporting our team members through this transition and ensuring an orderly and respectful closure,” the statement added.
It is unclear how many employees will be affected by the Princeton and Mount Laurel closures.
The company laid off about 62 workers, as per filing with the state Department of Labor & Workforce Development.
While disclosing the reason behind this abrupt closure, the company attributed the issues to inflationary pressures, increasing labor costs and changing consumer behavior.
The chain wound down dozens of underperforming locations during the bankruptcy process, including a Toms River restaurant.
The 44-year-old Dallas-born brand once operated over 150 establishments and became known for its fajitas, margaritas, chips and salsa, tortillas and salads.
Pappas Restaurants also operates Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bar-B-Q, Pappas Burger, Yiayia’s Greek Kitchen and Pappas Bros. Steakhouse.
