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Restaurant chain closures hit Waco, experts say shifts reflect broader consumer spending trends

On the Border is among several chains closing locations in Waco, but economists say the restaurant industry remains strong overall.
Restaurant chain closures hit Waco, experts say shifts reflect broader consumer spending trends
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WACO, Texas (KXXV) — On the Border's closure in Waco is part of a growing wave of chain restaurant shutdowns across the country, leaving workers searching for new jobs and longtime customers mourning the loss of familiar gathering places.

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Restaurant chain closures hit Waco, experts say shifts reflect broader consumer spending trends

Fasion Stroupe worked at the On the Border location off New Road for nearly six years, starting when he was 19 years old.

"I was sad because I've been here four or five years since I was 19, so I'm 25 now, so almost 6 years going on," Stroupe said.

Stroupe said he is now looking ahead despite uncertainty in the job market.

"And especially in today's economy and time it's real hard finding a job, but I mean I'm confident things are gonna get better or just work out, you know," Stroupe said.

For Waco native Elizabeth Ellwood, the closure feels like losing a piece of her community.

"I was sad because I have childhood memories here and I had my first legal alcoholic beverage here when I turned 21," Ellwood said.

On the Border is just one of several well-known restaurant brands that have announced closures in the area in recent years, including Applebee's, Hooters, and Outback. As operating costs rise and consumers become more selective with their spending, experts say many chains are being forced to reevaluate.

Economist Dan Varroney said the closures do not signal a collapse of the broader economy or the restaurant industry.

"The broader economy is not collapsing. We'll start with that. The second thing is the restaurant industry is not collapsing. It still represents almost $1.6 trillion in revenue. So there's good news there with regard to the industry and the overall economy," Varroney said.

Varroney said the closures instead reflect a shift in how consumers are choosing to spend their money.

"We're seeing is not that consumers have stopped going to local restaurants or fast food restaurants. However, what we are seeing is that they are being far more selective. They're following the value. They're following the taste, and they're voting with their feet," Varroney said.

On the Border has not yet responded to a request for comment regarding future plans.

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.