The Dallas-founded chain said it closed all company-owned locations June 12 and is evaluating the future of the brand.
DALLAS — On the Border Mexican Grill & Cantina has closed all of its company-owned restaurant locations, less than a year after the Tex-Mex chain filed for bankruptcy protection.
OTB Hospitality announced the closures, saying company-owned restaurants ceased operations June 12.
“This decision follows a thorough evaluation of the business and was not made lightly,” the company said in a statement. “We are currently evaluating the future of the On The Border brand and exploring a range of strategic options.”
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The company said its immediate focus is supporting employees affected by the closures.
The move marks another setback for the Dallas-founded restaurant chain, which filed for Chapter 11 bankruptcy protection in March 2025. At the time, the company cited inflation, rising labor costs and changing consumer spending habits that led customers to dine out less frequently.
As part of the bankruptcy process, On the Border had already closed roughly half of its restaurants. The chain said in court filings last year that restaurant inflation had outpaced grocery prices, while higher minimum wages and staffing challenges added pressure to operations.
A statement from On The Border Mexican Grill & Cantina.
View our franchise locations here: https://t.co/h5lhzFMXq0 pic.twitter.com/UszOrHQZ5F
— On The Border (@ontheborder) June 12, 2026
Founded in Dallas in 1982, On the Border built its brand around Tex-Mex favorites including fajitas, margaritas, chips and salsa, guacamole and fresh tortillas. The company was previously owned by Chili’s parent company, Brinker International, before changing ownership several times over the past decade.
Houston-based Pappas Restaurants acquired the chain out of bankruptcy in May 2025.
While company-owned restaurants have closed, some franchise-operated locations remain open. According to the company, independently owned franchise restaurants in South Dakota, Florida, Nevada, California and South Korea continue to operate.
A message posted on the company’s website thanked customers and employees for their support over the years.
“After many years of serving our communities, On The Border Mexican Grill & Cantina has closed its company-owned restaurant locations,” the company said. “We are deeply grateful to the guests and team members who supported On the Border for so many years.”
Dining and Cooking