Tex-Mex restaurant chain On The Border Mexican Grill & Cantina has announced the closure of all its company-owned locations across the United States. The decision, described as “incredibly tough,” comes after years of declining traffic and rising costs. Founded in Dallas, Texas, in 1982, On The Border once boasted over 150 locations nationwide.
The company filed for Chapter 11 bankruptcy in March 2025, and Houston-based Pappas Restaurants acquired the chain two months later. Despite efforts to revitalize the brand, including a menu overhaul and enhanced operations, the chain has struggled to maintain its footing in the competitive casual dining market.
On Friday, June 12, On The Border confirmed the closure of its remaining company-owned locations, including those in Oklahoma City, Tulsa, Grand Rapids, Michigan, Bucks County, Pennsylvania, and Wichita Falls, Texas. Franchise locations in South Dakota, Florida, Nevada, California, and South Korea will remain open, as they operate independently.
The company stated it is currently evaluating the future of the On The Border brand and exploring strategic options. The immediate focus is on supporting team members through this transition and ensuring an orderly closure. The closure follows a thorough evaluation of the business and was not made lightly.
On The Border’s Chief Restructuring Officer, Jonathan Tibus, noted that the chain has been impacted by macroeconomic factors affecting the casual dining sector. The chain joins several other major casual-dining chains, including Hooters, Red Lobster, and TGI Fridays, which have also filed for bankruptcy in recent years.
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