UpTrajectory Review
On The Border Mexican Grill & Cantina is shutting down all of its company-owned locations, a significant move following its Chapter 11 bankruptcy filing in March 2025. Acquired by Pappas Restaurants shortly after, the chain has been steadily downsizing, now operating only 33 locations nationwide, primarily in Texas. This closure reflects broader challenges in the casual dining sector, particularly for brands struggling to adapt to changing consumer preferences and economic pressures.
For small business operators, this situation underscores the importance of agility and strategic planning in a volatile market. The closure of a recognizable brand like On The Border serves as a cautionary tale about the risks of overexpansion and the need for continuous evaluation of business operations. As the restaurant landscape evolves, operators should keep a close eye on consumer trends and be prepared to pivot their strategies accordingly.
Takeaway: Stay agile and continuously evaluate your business strategy to adapt to market changes.
From the original item — Fast Company:
Casual Tex-Mex restaurant chain On The Border Mexican Grill & Cantina is closing its company-owned locations by the end of the day today, a spokesperson confirmed.
The company filed for Chapter 11 bankruptcy protection in March 2025, and was acquired by Pappas Restaurants two months later.
At the time of the acquisition, Dallas-based Pappas took on 60 U.S. locations and 20 franchised locations in South Korea, Franchise Times reported.
Since then, the casual restaurant chain has continued to reduce its footprint. The brand’s official website currently lists 33 locations nationwide—17 of them are in Texas, the state where the chain 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 emailed to Fast Company.
The company added that it made the decision following a thorough review of its business.
“We are currently evaluating the future of the On The Border brand and exploring a range of strategic options,” the statement continued. “Our immediate focus is on supporting our team members through this transition and ensuring an orderly and respectful closure.”
OTB did not single out specific locations in its statement. However, it said that independently operated franchise locations in South Dakota, Florida, Nevada, California, and South Korea will remain open.
On The Border’s website lists five locations across those four states.
The remaining locations that are presumably company owned are located in Arkansas, Kansas, Michigan, New Jersey, North Carolina, Oklahoma, Pennsylvania, and Texas, according to OTB’s store locator tool.
News of the closures had been reported by a number of local media outlets over the last few days.