"On the Border joined a growing list of chain restaurants struggling to recuperate post-pandemic, fighting to keep up with labor shortages, higher supply costs, and lower in-restaurant foot traffic. The chain was losing money fast and not making enough profit to stay sustainable, so it began shutting down restaurants at the beginning of 2025. Soon after, it officially filed for Chapter 11 bankruptcy (much like these nine other restaurant chains), at which point it was drowning in $19 million of debt."
"Two months after filing for bankruptcy, On the Border was auctioned off and purchased by Pappas Restaurants, the same group responsible for Pappas Bros. Steakhouse, Pappasito's Cantina, Pappadeaux Seafood Kitchen, and Pappas Bar-B-Q. According to a press release from Restaurant News, the acquisition of the brand "will bring together two iconic Texas-based restaurant brands and expand Pappas' presence in the Tex-Mex category.""
On the Border Mexican Grill & Cantina declined from about 160 peak locations to roughly 60 by early 2025. The chain faced post-pandemic challenges including labor shortages, rising supply costs, and reduced in-restaurant traffic, which forced widespread closures and a Chapter 11 bankruptcy filing with $19 million in debt. Customers have rated the chain poorly among Mexican restaurant chains. Two months after the bankruptcy filing, Pappas Restaurants acquired On the Border at auction. Pappas operates several Texas brands and plans to enhance the menu, operations, guest experience, and expand its Tex-Mex presence.
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