Chipotle fans were thrown for a major loop late last week when rumors started swirling that the Mexican grill was bankrupt and closing down. Turns out, Spanish media outlet Unión Rayo made the mistake of putting an image of Chipotle on an article about the chain's short-lived spinoff venture, Farmesa Fresh Eatery, which is closing. Chaos ensued, but the rumors have been squashed by Chipotle's rep, who confirms that not only is the chain not closing, it's opening even more locations this year.
Unfortunately, the same cannot be said for On the Border, another national Mexican grill, which filed for bankruptcy earlier this month and is now announcing restaurant closings. Here's everything you need to know about this sector of the food world.
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Chipotle Opening Up to 345 New Locations
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Chipotle had a better than expected 2024, making $11.3 billion in revenue (up from 2023 by 14.6%) and increasing restaurant sales by 7.4%.
"Chipotle had another outstanding year, delivering strong transaction driven comps each quarter, expanding margins, adding over 300 new restaurants, gaining momentum in key industry leading brand metrics, making progress on many restaurant operating initiatives and building our footprint internationally," said Scott Boatwright, CEO, Chipotle, in a Feb. 2025 press release.
"I want to make sure that as we continue to scale Chipotle, everything we do is in service of our guests or those who serve our guests which will enable us to achieve our long-term ambitious goals of reaching 7,000 restaurants in North America."
To reach its goal, Chipotle opened 304 new restaurant locations in 2024. And this year, it's aiming even higher.
"We anticipate opening between 315 to 345 new restaurants this year with at least 80% including a (digital drive-thru) Chipotlane," Chipotle spokesperson Erin Wolford told USA Today.
These Chipotlane's currently operate at 30% of the company's 3,600 restaurant across the country, and Chipotle's c-suite believes they are the key to reaching 7,000 new locations and the fastest way for customers to get their food.
While there's no word yet on where these new locations will pop up across the country, it's clear that Chipotle is cruising to a happy tune this year.
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On the Border Closing 70 Locations
File:On The Border - Cranberry TWP, PA - panoramio.jpg - Wikimedia ...commons.wikimedia.org
Meanwhile, casual restaurant chain, On the Border Mexican Grill & Cantina, is shrinking.
The company filed for bankruptcy in early March 2025, claiming its 60 remaining locations were struggling under economic strain, labor shortages, and low performance.
Now, court records reveal that On the Border plans to close whatever is left, amounting to 70 total closures (some were shuttered before the chapter 11 filing).
USA Today has the full list of locations, which include On the Borders in Texas, Missouri, Georgia, Florida, and just about any state that had a restaurant.
"On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the Company," said OTB Holdings Chief Restructuring Officer Jonathan Tibus in court records.
He was quick to blame the growing dining trend of Americans who prefer to takeout over going out to eat.
"Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in," he said.
Surely, once-beloved chains like Denny's and Red Robin can relate.
