Today, Friday, June 12, 2026, marks the final day of service for all corporate-owned locations of On The Border Mexican Grill & Cantina. The casual Tex-Mex brand, first launched in Dallas in 1982, is permanently shuttering around 30 locations across the US.
This operational shutdown marks the end of a major local rescue effort led by Houston’s own Pappas Restaurants.
In March 2025, On The Border was $25 million in debt. Having lost money due to inflation and post-pandemic dining habits, the chain filed for bankruptcy. Soon thereafter, the company shuttered 40 locations in the country – including all locations in Houston.
In May 2025, Houston-based Pappas Restaurants acquired the ailing brand out of bankruptcy for $15.9 million. Following the purchase, Pappas initiated an extensive menu restructuring aimed at food quality and daily operations. However, the adjustments received negative feedback from longtime patrons, and the turnaround strategy ultimately fell short.
“This decision follows a thorough evaluation of the business and was not made lightly. We are currently evaluating the future of the On The Border brand and exploring a range of strategic options” OTB Hospitality under Pappas Restaurants said in a statement.
While the parent company, Pappas Restaurants, is based in Houston, the final 17 Texas restaurants closing are located entirely in DFW and a few other Texas cities like Waco, Tyler, and Corpus Christi.
A small number of independently run franchise locations will continue operating as usual. These ongoing businesses are primarily located in California, Florida, Nevada, and South Dakota. Fans of On The Border can find its commercial line of tortilla chips, salsas, and queso dips in grocery stores.
