On The Border closes doors after a rocky comeback
The Tex-Mex chain shuts company stores one year after a bankruptcy rescue
On The Border Mexican Grill and Cantina closed every company-owned restaurant Friday, June 12. The closures came just over a year after Pappas Restaurants acquired the chain out of bankruptcy. For a brand that once ran more than 150 locations nationwide, it marks the end of a long slide.
A rescue that did not hold
The company filed for Chapter 11 bankruptcy in March 2025. Two months later, Pappas Restaurants bought the chain after a bidding war. Since then, On The Border had trimmed its footprint from 60 locations to 33 as of this week. Now those remaining stores are gone too.
OTB Hospitality, the chain’s management group, called the move a significant transition following a thorough business evaluation. The company said it is exploring strategic options for the brand going forward, though it gave no specific details on what those options might look like.
Workers got two days notice
Several employees said they learned about the closures only two days before their final shift. One worker at the Wichita Falls location described the short notice as especially hard for staff supporting families. She said multiple coworkers received the same call and expressed hope that everyone would land new jobs quickly.
OTB Hospitality said its focus is on supporting team members through the transition and handling the closure in an orderly way, though it did not specify what support would look like in practice.
Franchises remain open
Independently operated franchise locations are not affected. These include restaurants in South Dakota, Florida, Nevada, California and South Korea. In California, two franchise locations in Mira Mesa and Escondido remain open, both in San Diego County.
A Texas original turns 44
On The Border opened its first location in Dallas in 1982. That original restaurant stopped regular dine-in service in 2019 and reopened the same year as a catering and delivery-only spot.
At its peak, the chain ran more than 150 restaurants across the country, plus a handful in South Korea. California alone once had more than a dozen locations spread across the Bay Area, Sacramento and Southern California. Early last year, the chain still operated 120 locations in states including Texas, Colorado and Illinois. Then 40 stores closed in February 2025, just months before the bankruptcy filing.
A pattern across casual dining
On The Border joins a growing list of Mexican chains that have filed for bankruptcy in recent years, including Tijuana Flats, Abuelo’s Mexican Restaurant and Rubio’s Coastal Grill. The pressure also extends well beyond Mexican food. Red Lobster and TGI Fridays have both filed for Chapter 11 recently. Additionally, the largest California franchisee of Carl’s Jr. filed for bankruptcy with plans to close 10 locations and sell the remaining 49.
For longtime customers, though, the closures hit differently. Some described decades of memories tied to specific locations, including one couple who met while working there and have now been together 13 years.
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