Things have been rough for Mexican restaurant chains over the past few years. Those that have filed for Chapter 11 bankruptcy protection and put sweeping closures into effect include Tijuana Flats, Abuelo’s Mexican Restaurant and Rubio’s Coastal Grill.
On the Border — a popular Tex-Mex chain founded in Dallas in 1982 — also filed for Chapter 11 bankruptcy in March 2025 and was purchased later that year by Pappas Restaurants after a bidding war. As of this week, though, the company has announced that the 44-year-old chain will close all of its remaining company-owned restaurants nationwide by the end of the week.
At the height of its popularity, On the Border operated more than 150 restaurants in the United States, as well as a handful in South Korea. There were once more than a dozen locations in California alone, in markets like the Bay Area, Sacramento and in the Southern California region. As of early 2025, there were still 120 outposts in states like Texas, Colorado and Illinois, but 40 were shuttered or vacated in February of that year before the chain filed for bankruptcy.
The two remaining independently owned California locations in Mira Mesa and Escondido, both in San Diego County, will remain open, SFGATE confirmed by phone with both outposts. SFGATE also reached out to the franchisees behind those locations to discuss what the future holds for the brand, but did not hear back before publication.
The statement read: “On The Border Mexican Grill & Cantina has made the difficult decision to move forward with a significant transition in its restaurant operations, which will include the closing of company-owned locations by end of day Friday, June 12, 2026. 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.”
Mexican chains aren’t the only ones being hit hard by rising food and labor costs and economic conditions. Both Red Lobster and TGI Fridays have filed for Chapter 11 bankruptcy in recent years. Additionally, the largest franchisee of Carl’s Jr. in the state of California, Friendly Franchisees Corporation, recently filed for bankruptcy, with plans to close 10 locations and sell the remaining 49 in its portfolio.