The casual restaurant sector has struggled this year due to economic challenges that have resulted in some of the most popular dining chains filing for bankruptcy.

Most dining chains identified several common reasons for their financial distress, including issues with liquidity, a negative macroeconomic environment, labor shortages, underperforming restaurants, creditor enforcement actions, inflation that led to higher menu prices, and changing consumer discretionary spending habits.

Mexican and Italian chains closed restaurants in bankruptcy

Mexican restaurant chain On The Border Mexican Grill & Cantina noted all of those reasons for its Chapter 11 bankruptcy filing on March 4, 2025, with plans to sell its assets to its prepetition bridge loan lender, which is an affiliate of Pappas Restaurants.

On The Border listed about 80 locations, with 60 operated by OTB Holding, which was 100% owned by an affiliate of private equity firm Argonne Capital Group and 20 others run by franchisees.

The debtor closed or vacated 40 non-performing stores on Feb. 24 because of problems with rent and/or financial performance.

Another popular Mexican chain, Abuelo’s Mexican Restaurant, filed for Chapter 11 bankruptcy in September 2025, blaming rising costs, labor issues, and declining sales. The company had about 40 locations at its peak, but had diminished to 16 restaurants when it filed for bankruptcy.

Italian restaurant chains didn’t escape bankruptcy court as Bravo Brio Restaurants LLC, the parent company of popular upscale Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille, filed for Chapter 11 bankruptcy for the second time in five years on Aug. 18, 2025, to reorganize its businesses and restructure debt.

TGI Fridays has closed two more restaurants in Missouri.

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TGI Fridays closes last Missouri locations

And now popular casual bar and grill chain TGI Fridays has closed two more locations, which were its last restaurants in Missouri, the St. Louis Business Journal reported.

TGI Fridays permanently closed its Columbia, Mo., location on Nov. 10, and also shut down its St. Charles, Mo., restaurant on Nov. 12.

The St. Charles location, which opened in 1999, posted a note on social media revealing its closing.

“This location is permanently closed. Thank you for the memories,” the post said.

The Columbia location’s Facebook page states that the restaurant is permanently closed, but a post on the site is still soliciting holiday party reservations for 15% off if booked by Dec. 1, suggesting it was an abrupt closing.

Closed TGI Fridays locations

• 3030 I-70 Drive Southeast, Columbia, Mo., closed Nov. 10.
• 2000 South 1st Capitol Drive, St. Charles, Mo., closed Nov. 12.

TGI Fridays, which was founded in 1965, also launched its holiday-themed TGI Elf Days promotion from Nov. 6, 2025, through Jan. 5, 2026.

A note posted on the Columbia location front door states, “Sorry! We are now permanently closed,” KSSZ-Radio 93.9 reported.

TGI Fridays filed for bankruptcy in 2024

TGI Fridays had 39 corporate-owned restaurants and 122 franchised locations, totaling 161 in the U.S., when the parent company TGI Fridays Inc. filed for Chapter 11 protection on Nov. 2, 2024. The U.S. franchised restaurants and 316 international franchises did not file for bankruptcy.

More bankruptcy:

• 34-year-old casual dining chain files for Chapter 11 bankruptcy
• Major seafood company files for Chapter 11 bankruptcy
• 55-year-old women’s fashion company files Chapter 11 bankruptcy

The Dallas-based dining chain divested of its corporate-owned locations in January 2025, as it sold 27 of its remaining restaurants and closed the other 12 locations that lacked potential buyers.

The company continued to shrink this year while the parent corporation remained in bankruptcy, as its franchise locations declined from 85 in April to 79 by Nov. 20, according to the company’s website locator.

79 TGI Fridays locations

• Arkansas (2)
• California (4)
• Delaware (3)
• Florida (8)
• Georgia (7)
• Illinois (3)
• Indiana (1)
• Maryland (11)
• Massachusetts (5)
• Michigan (1)
• Minnesota (1)
• New Jersey (6)
• New York (2)
• North Carolina (3)
• Ohio (1)
• Pennsylvania (9)
• Texas (4)
• Virginia (7)
• West Virginia (1)

Related: 101-year-old freight company files for Chapter 11 bankruptcy