On the Border closes most of its locations

Summary

Mexican casual-dining chain On the Border closed all company-owned locations after service on a Friday, just over a year after being acquired out of bankruptcy by Pappas Restaurants, leaving the chain with five franchised US locations plus at least one in South Korea, capping a rapid decline from 166 locations at its 2007 peak.

Market Impact

The closures mark the near-collapse of a once-prominent Tex-Mex chain, illustrating the severe pressure on mid-tier casual dining: On the Border had 80 restaurants when Pappas acquired it in March 2025, was down to 57 by year-end, and listed 33 units before the final closures. Sales fell nearly 33% last year while unit count was slashed 42%, per Technomic. Founded in 1982 and once owned by Brinker International (1994), Golden Gate Capital (2010), and Argonne Capital Group (2014), the chain reached 166 locations in 2007 before persistent sales declines from 2008. OTB Hospitality is evaluating the brand's future and exploring strategic options, reflecting how legacy casual-dining concepts struggle against shifting consumer preferences and fast-casual competition.

Why It Matters

On the Border's near-total closure illustrates the severe structural pressure on legacy mid-tier casual-dining chains, where shifting consumer preferences and fast-casual competition have driven rapid unit declines and brand collapse.

Key Points

• On the Border closed all company-owned locations after service on Friday, just over a year after being acquired out of bankruptcy by Pappas Restaurants
• The closures left the chain with five franchised US locations in South Dakota, Florida, Nevada, and California, plus at least one franchised location in South Korea
• The chain had 80 restaurants when Pappas acquired it in March 2025, fell to 57 by year-end, and listed 33 units before the final closures; sales fell nearly 33% last year and unit count was cut 42% per Technomic
• Founded in 1982 and once reaching 166 locations in 2007, On the Border was previously owned by Brinker International, Golden Gate Capital, and Argonne Capital Group

Key Entities

Evidence

On the Border has closed most of its restaurants, just over a year after it was acquired out of bankruptcy by Pappas Restaurants. All company-owned locations of the Mexican casual-dining chain shut down after service...

Supports: Confirms the closure of all company-owned locations

It appears that 27 restaurants were closed, leaving the chain with five franchised U.S. locations, in South Dakota, Florida, Nevada, and California, according to On the Border's website.

Supports: Documents the scale of closures and remaining franchised footprint

It had 80 restaurants last March when it was acquired by Houston-based Pappas, and had closed 77 struggling locations leading up to the filing. As of the end of last year, it was down to 57

Supports: Grounds the rapid unit-count decline timeline