On The Border Mexican Grill & Cantina is closing all of its company-owned locations by the end of today, marking a dramatic downsizing for the casual Tex-Mex chain. The Dallas-based brand, which filed for Chapter 11 bankruptcy protection in March 2025, was acquired by Pappas Restaurants two months later.
At the time of the acquisition, Pappas took on 60 U.S. locations and 20 franchised outlets in South Korea, according to Franchise Times. However, the chain has since continued to shrink its footprint. The brand's website now lists just 33 locations nationwide, with 17 of those in Texas—the state where On The Border was founded in 1982.
"On The Border Mexican Grill & Cantina has made the difficult decision to move forward with a significant transition in its restaurant operations, which will include the closing of company-owned locations by end of day Friday, June 12, 2026," OTB Hospitality said in a statement. The company noted the decision followed a thorough business review.
The closures signal a strategic pivot away from company-run operations and toward a franchise-focused model. "We are currently evaluating the future of the On The Border brand and exploring a range of strategic options," the statement continued. The move reflects broader pressures on casual dining chains facing rising costs and shifting consumer preferences.
The immediate impact falls on employees and customers at the shuttered locations, though the 20 franchised sites in South Korea remain operational. It remains unclear how many jobs are affected or what role Pappas Restaurants will play in the brand's next chapter.