California diners are losing the remaining locations of a longtime Tex-Mex restaurant chain as On The Border continues to shrink after filing for bankruptcy and shutting down most of its U.S. operations.
The Dallas-based chain filed for Chapter 11 bankruptcy protection in March 2025 after years of declining sales and increasing financial pressure. At the time, the company operated dozens of restaurants across the country but had already begun closing underperforming locations.
Bankruptcy led to widespread closures
On The Border’s financial troubles ultimately resulted in a dramatic reduction of its restaurant footprint. Earlier this month, the company closed all 60 remaining company-owned restaurants nationwide, leaving only a handful of franchised locations in operation.
California was among the states affected by the downsizing. The chain’s presence in the state has been reduced to just two franchise-operated restaurants in Escondido and San Diego’s Mira Mesa neighborhood, according to recent reports.
The closures mark a significant decline for a brand that once operated more than 150 restaurants across the United States and internationally.
A familiar chain faces changing consumer habits
Founded in Dallas in 1982, On The Border built its reputation on Tex-Mex favorites such as fajitas, enchiladas, chips and queso, and margaritas. For years, the chain was a staple of the casual dining industry.
However, the company struggled as consumers increasingly shifted spending toward fast-casual restaurants and delivery-focused dining options. Rising labor costs, inflation and changing customer preferences added further pressure.
What’s next for the brand?
Despite the nationwide shutdown of company-owned locations, On The Border has not disappeared entirely. Five franchise-operated restaurants remain open in the United States, including the two California locations.
The brand was acquired by Houston-based Pappas Restaurants during bankruptcy proceedings, but efforts to revive the chain have so far resulted in a much smaller operation than in previous years.
For California fans of the Tex-Mex chain, the remaining franchise locations may represent one of the last opportunities to visit On The Border as the company continues its uncertain path forward.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment