On the Border shuts all company-owned locations after bankruptcy

On the Border Mexican Grill & Cantina has closed all remaining company-owned locations nationwide, ending more than four decades of Tex-Mex dining at a chain that helped popularize the cuisine across the country.

The Dallas-founded chain, which opened its first location in 1982 and once operated more than 150 restaurants, cited weak traffic and demand among the factors leading to its 2025 bankruptcy filing and was subsequently acquired by Houston-based Pappas Restaurants. OTB Hospitality, the entity Pappas created to operate the locations, said the decision “follows a thorough evaluation of the business and was not made lightly.”

A statement posted on the chain’s website called the closures “an incredibly tough decision,” adding: “We are deeply grateful to the guests and team members who supported On the Border for so many years.”

The company said it is “evaluating the future of the On the Border brand and exploring a range of strategic options” while working to support displaced employees.

The shutdown reflects broader pressures squeezing the casual dining sector, where rising labor costs, persistent inflation and shifting consumer habits have strained brands that dominated the American restaurant landscape in the 1980s and 1990s.

Not all locations will go dark. Franchise restaurants in California, Florida, Nevada, South Dakota and South Korea operate independently and will remain open.

Meanwhile, another Tex-Mex relic is attempting a revival. Chi-Chi’s — known for chimichangas and deep-fried ice cream before shutting down in 2004 after a hepatitis A outbreak at a Pittsburgh-area location — opened its first new location in two decades last October in St. Louis Park, Minnesota.

Michael McDermott, son of co-founder Marno McDermott, is leading the relaunch after reaching a trademark agreement with Hormel Foods, which has owned the Chi-Chi’s brand since the 1980s. Mr. McDermott has said his goal is to “explore the original development path Chi-Chi’s took through both company and franchised opportunities within the Midwest and East Coast.”