On The Border Mexican Grill & Cantina has officially shut down all of its company-owned establishments across the United States as of Friday, June 12, 2026. This decision marks a significant moment in the history of the Tex-Mex dining chain, which has been a staple since its establishment in Dallas in 1982.
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The chain had previously faced financial struggles, including a Chapter 11 bankruptcy filing in March 2025. At that time, over 70 of its restaurants closed their doors. However, the situation appeared to improve when Pappas Restaurants acquired On The Border after a competitive auction. This acquisition included 60 locations across the U.S. and an additional 20 franchises in South Korea, prompting hopes for a resurgence of the brand.
Despite this initial optimism, it has become evident in recent months that the path to recovery was not as straightforward as anticipated. Reports indicated a number of locations had gradually ceased operations since the acquisition. On June 12, the company announced that all remaining company-operated restaurants would permanently close, signalling yet another challenging chapter for the renowned chain.
In an official statement from OTB Hospitality, the corporate management group of On The Border, the closure was described as a “significant transition” in restaurant operations. The announcement expressed deep appreciation for long-standing customers and employees, acknowledging the difficult nature of the decision. “We are deeply grateful to the guests and team members who supported On The Border for so many years,” the statement read.
Fast Company noted that, on the same day of the closure announcement, 33 locations were still listed on the restaurant’s website. This discrepancy suggested that the closure process had been impending for some time. As the company evaluated its business strategy, the decision was claimed to have been thoroughly considered and not made lightly, as cited in reports from USA Today.
Despite the closure of company-owned sites, there is a glimmer of hope for the brand’s future. Franchise locations in several states, including California, Florida, Nevada, and South Dakota, will remain operational, along with the establishments in South Korea. These franchised restaurants operate independently from the corporate chain, allowing some level of continuity for loyal patrons.
As diners reflect on the closure of On The Border’s company-run locations, they are invited to remember the offerings that defined the chain—fajitas, tacos, and classic margaritas. For many, On The Border represented not just a dining option but a cultural experience steeped in Tex-Mex traditions.
The chain’s journey over the decades has been emblematic of broader trends in the restaurant industry, reflecting shifts in consumer preferences, the impact of economic challenges, and the unique difficulties faced by casual dining venues. As the landscape continues to evolve, the future of brands like On The Border remains uncertain, leaving stakeholders to ponder what changes may lay ahead in this dynamic sector.
For now, as patrons bid farewell to On The Border’s company-owned restaurants, they may find solace in the continuing operation of franchise locations, which retain the potential to keep the brand alive.