On The Border Mexican Grill & Cantina has shut down almost all of its company-owned restaurants across the United States, leaving only five franchised locations still operating, according to industry reports. The closures mark a major downsizing for the once widely recognised casual dining chain.
On The Border Closes 27 Restaurants In Major Restructuring
The Dallas-based chain has closed 27 company-owned locations following a broader business review after being acquired out of bankruptcy in 2025 by Houston-based Pappas Restaurants. The decision leaves only independently operated franchise restaurants in operation.
The remaining locations are spread across California, Florida, Nevada and South Dakota, with at least one additional franchised restaurant operating internationally in South Korea.
Company Reviewing Future Of The Brand
Following the closures, the company said it is now evaluating the long-term future of the On The Border brand and considering a range of strategic options. The shutdown was described as part of a “thorough evaluation of the business.”
Management has said its immediate priority is supporting affected staff and ensuring an orderly wind-down of company-owned operations while the brand’s future is assessed.
Long-Term Decline For Once-Expanding Chain
Founded in 1982, On The Border expanded significantly over the years, reaching around 166 locations by 2007. However, the chain has experienced a sustained decline in recent years, with falling sales and a shrinking store footprint.
At the time of its acquisition in March 2025, the brand operated around 80 restaurants. Since then, performance has weakened further, with industry data indicating a 33% drop in sales and a 42% reduction in unit count over the past year.
Despite this decline, the chain still generated approximately $152 million in annual sales, placing it among the larger Mexican casual dining brands in the US market.
Casual Dining Sector Under Pressure
The closures highlight wider challenges facing mid-market restaurant chains, which are under pressure from rising costs, shifting consumer behaviour and increased competition from fast-casual dining and delivery-focused brands.
Industry analysts note that many chains in this segment are struggling to maintain profitability as customers increasingly move toward either budget-friendly fast food or premium dining experiences.
Uncertain Future For Remaining Locations
On The Border has changed ownership several times over its history, including periods under Brinker International and private investment groups. Its current owner, Pappas Restaurants, had previously signalled plans to modernise the brand and refresh its operations.
It remains unclear whether the remaining franchise locations will continue operating long term or whether further restructuring could take place in the coming months as the company reassesses its strategy.
