On The Border Mexican Grill and Cantina, the Dallas-born Tex-Mex chain, has closed all of its company-owned locations, marking the end of the brand’s latest attempt at survival after being pulled from bankruptcy by Pappas Restaurants Inc. one year ago.
OTB Hospitality, the operator of the chain, confirmed the closures in a statement, saying the decision followed a thorough evaluation of the business and was not made lightly. The company said it is currently evaluating the future of the On The Border brand and exploring a range of strategic options.
The closure affects all company-owned restaurants, which shut their doors by end of day Friday, June 12, 2026. However, independently operated franchises in South Dakota, Florida, Nevada, California, and South Korea will remain open.
On The Border was rescued from bankruptcy in 2025 by Houston-based Pappas Restaurants Inc., a restaurant group known for operating Pappadeaux Seafood Kitchen and Pappasito’s Cantina. The acquisition was seen as a potential lifeline for the struggling chain, but the closure suggests the turnaround effort fell short.
The closure reflects broader challenges facing mid-scale casual dining chains, particularly in the Tex-Mex segment, where rising food costs and shifting consumer preferences have squeezed margins. A family-owned barbecue spot in Cedar Hill, Mija Barbecue, also recently announced its closure, with owners citing rising beef prices as a driving factor.
On The Border was founded in the Dallas area and grew to become a recognizable regional chain. Its struggles mirror those of other mid-market restaurant brands that have faced pressure from both higher-end competitors and fast-casual alternatives.
The fate of the On The Border brand remains uncertain, with OTB Hospitality indicating it is exploring strategic options that could include franchising the brand, selling assets, or other restructuring approaches. The company did not provide a timeline for its strategic review.
