On the Border says it will close every company-owned restaurant by the end of day Friday, June 12, 2026, and is evaluating the future of the brand after its Chapter 11 bankruptcy and a later acquisition by Pappas Restaurants.
The lights are staying on for franchise customers, but for On the Border’s company-owned locations, the countdown is already started.
On Friday. June 12. On The Border Mexican Grill & Cantina announced it would close all company-owned restaurants. a move tied to the company’s ongoing efforts to restructure its operations and determine what comes next for the brand. In a statement shared with The Oklahoman. the company said the transition would include closing company-owned locations by the end of day Friday. June 12. 2026.
The chain’s roster has been reshaped before. When On The Border filed for Chapter 11 bankruptcy in March 2025, there were 60 company-operated restaurants. Many of those were reopened after Houston-based Pappas Restaurants acquired the chain in May 2025 following an auction process.
For months, the company highlighted a makeover tied to its new owner’s standards. In a news release dated May 1. On The Border said it had already undergone a sweeping menu overhaul rooted in the same culinary standards that have defined the Pappas name across Texas for decades. The company said the team enhanced food quality, strengthened operations, and elevated the overall guest experience.
The Pappas Restaurants group’s portfolio includes Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bros. Steakhouse, Pappas Bar-B-Q, Pappas Burger and Yiayia’s Greek Kitchen, with more than 100 locations across the U.S.
Then came the latest turn: On Friday, June 12, the company said it was closing all company-owned locations and evaluating the future of the On The Border brand.
The effect is already showing up across geographies. In addition to the Oklahoma closings—where the chain had one location in Oklahoma City and another in Tulsa—restaurants in cities including Grand Rapids. Michigan; Bucks County. Pennsylvania; and Wichita Falls. Texas. were reported closing. On The Border’s announcement also said franchise locations in South Dakota. Florida. Nevada. California and South Korea will remain open because they operate independently.
On The Border also posted the closures on its website with a message that framed the decision as final for its company-owned footprint. “After many years of serving our communities, On The Border Mexican Grill & Cantina has closed its company-owned restaurant locations. This was an incredibly tough decision. We are deeply grateful to the guests and team members who supported On The Border for so many years. Thank you to everyone who has been part of this journey.”.
The timing lands on top of an earlier wave of shutdowns. In the 2025 bankruptcy process, On The Border closed more than 70 locations after filing for Chapter 11 in March 2025. In court records. OTB Holdings Chief Restructuring Officer Jonathan Tibus said the company had been “weighed down in recent years” by macroeconomic factors that negatively impacted it. and that casual dining restaurants are especially exposed to “consumer sensitivities to eating out versus staying in.”.
When Pappas Restaurants acquired the chain, the company said the subsequent reopenings reflected an investment plan following the auction. On the June 12 closings. On The Border said the move “follows a thorough evaluation of the business and was not made lightly.” The statement added: “We are currently evaluating the future of the On The Border brand and exploring a range of strategic options.” It also said the immediate focus is on supporting team members through the transition and ensuring an orderly and respectful closure.
The sequence—from the Chapter 11 filing in March 2025 with 60 company-operated restaurants. to the reopenings after the May 2025 acquisition. and now to the June 12 decision to end company ownership—leaves one practical question for employees and guests: what the brand becomes next. even as franchise locations continue independently in selected markets.
For now, the company’s stated plan is clear on the end date for its company-owned restaurants: closures by the end of day Friday, June 12, 2026, while the brand’s future remains under evaluation.
On The Border Chapter 11 Pappas Restaurants restaurant closures casual dining bankruptcy OTB Hospitality Jonathan Tibus Oklahoma City Tulsa Neshaminy Mall
Wait so they’re closing like all of them?? That seems crazy, I was just there lol.
This reads like another bankruptcy story where the food suffers and then they blame “restructuring.” If franchise places stay open then it’s probably fine for most people, right? Or is Pappas gonna come in and rebrand it again…
I don’t get it, didn’t they just “makeover” the menu after Pappas took over? Like why would they close company ones the same year they fixed everything. Also Chapter 11 was in 2026? I’m confused on the dates.
So they shut down the company-owned restaurants but the franchise ones are staying on… meaning the ones in my area probably still gonna be open but with different queso suppliers? Companies always do this, keep the brand name but change everything. Pappas already owns a ton of stuff too so it feels like they’re just consolidating. Glad I didn’t wait, my On the Border had better chips before.