After more than four decades in business, On The Border Mexican Grill & Cantina has closed all of its company-owned restaurant locations, marking a dramatic chapter in the history of one of America’s best-known Tex-Mex chains.
A rapid decline after bankruptcy
The Dallas-based restaurant chain filed for Chapter 11 bankruptcy protection in March 2025 after struggling with financial and operational challenges. Court filings cited liquidity issues, rising costs, and declining customer traffic as factors that contributed to the company’s troubles. Prior to the bankruptcy filing, the chain had already closed dozens of underperforming restaurants across the country.
At its peak, On The Border operated more than 150 locations and built a loyal following with its fajitas, margaritas, and Tex-Mex menu. However, like many casual dining brands, the company faced increasing competition and changing consumer preferences.
New ownership couldn’t stop the closures
In 2025, Houston-based Pappas Restaurants acquired On The Border through the bankruptcy process and announced plans to revitalize the brand. The company invested in operational improvements and launched a significant menu overhaul intended to attract customers back to the chain.
Despite those efforts, On The Border announced in June 2026 that all company-owned locations would close following a review of the business. The company described the move as a difficult decision and said it is evaluating future options for the brand.
What’s next for the brand?
While company-owned restaurants have closed, some independently operated franchise locations remain open in select states and international markets. The future of the On The Border name remains uncertain, but the closures represent one of the most significant restaurant industry stories of 2026 and highlight the ongoing challenges facing casual dining chains nationwide.
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