On the Border Mexican Grill & Cantina Closes All U.S. Locations
After over 40 years of serving up fajitas, queso, and margaritas, On the Border Mexican Grill & Cantina has announced that it will be shutting down all its remaining restaurants across the United States. This decision comes as the Tex-Mex chain, founded in Dallas, has struggled with declining customer traffic, increasing costs, and bankruptcy filed in 2025.
The closure follows a Chapter 11 reorganization in 2025 and the chain’s acquisition by Houston-based Papa’s Restaurants. A statement on their website referred to the decision as “incredibly difficult,” thanking both guests and team members for their support throughout the years.
OTB Hospitality, which now operates the chain under Papa’s Restaurants, explained that this choice was made after a careful evaluation of the business and was not taken lightly. They mentioned they are exploring the future of the On the Border brand and are considering various strategic options while doing their best to support affected employees.
The closure signifies a considerable decline for the chain, originally established in 1982, which played a pivotal role in bringing Tex-Mex food into the mainstream in the U.S. At its peak, On the Border boasted over 150 restaurants known for their sizzling fajitas and refreshing margaritas.
Current events have shown broader challenges in the casual dining sector, with rising labor costs, inflation, and shifting consumer preferences impacting what were once leading restaurant brands.
The company expressed gratitude for the loyalty shown by its guests and the hard work of employees. Social media reactions have reflected the sentiment of loss, with many expressing their sadness over the chain’s closure. While some have criticized On the Border, others have pointed out issues like the consistency of their margarita mix and hot sauce as possible factors in its downturn.
However, it’s worth noting that some franchised locations in states like California, Florida, and Nevada will remain open, as they operate independently. In recent years, several national chains have faced closures, restructuring, and bankruptcy, yet amid this decline, there is still a push to revitalize the Tex-Mex experience.
For instance, Chi-Chi’s, famous for its chimichangas, recently opened its first new location in 20 years in Minnesota, signaling a potential revival within this niche of dining. The founder of the new Chi-Chi’s hinted at possibilities for further expansion, particularly focusing on the Midwest and East Coast.
