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The basics:

• On The Border closing all company-owned locations June 12
• Princeton, Mount Laurel last NJ restaurants affected
• Pappas Restaurants acquired chain out of bankruptcy in 2025
• Franchise-operated locations will remain open

It’s the last call at On The Border Mexican Grill & Cantina.

A year after Texas-based Pappas Restaurants acquired the brand out of Chapter 11 bankruptcy, the Tex-Mex chain’s new owners will shut down all company-owned locations nationwide.

Two remaining New Jersey outposts in Mount Laurel and Princeton are among the roughly 30 company-owned sites that will go dark June 12, the group said.

A future for the brand?

In a statement to NJBIZ, Pappas said it made the “difficult decision to move forward with a significant transition in its restaurant operations.”

“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,” they said. “Our immediate focus is on supporting our team members through this transition and ensuring an orderly and respectful closure.”

It is not clear how many employees the closures in Princeton and Mount Laurel will affect. After shuttering On The Border in Paramus, the company let go of about 62 workers, according to a filing with the state Department of Labor & Workforce Development.

Franchise-run locations in South Dakota, Florida, Nevada, California and South Korea will remain open and continue to operate independently, according to Pappas.

Sizzled out

Once a popular casual dining chain with more than 150 establishments, the 44-year-old Dallas-born brand became known for its fajitas, margaritas, chips & salsa, tortillas and salads.

Similar to other restaurants that declared bankruptcy over the past two years, such as TGI Fridays and Red Lobster, On The Border peaked in the 1990s and early 2000s when casual dining was especially popular.

Like its rivals, On The Border also experienced declining traffic amid a pull-back in customer spending at full-service eateries.

Citing inflationary pressures, rising labor costs and changing consumer behavior, the chain filed for Chapter 11 in March 2025. After, it wound down dozens of underperforming sites as the company worked through the bankruptcy process. Locally, that wave of closures impacted a Toms River location.

Two months after declaring Chapter 11, Pappas acquired On The Border. The family-owned and -operated restaurant group reportedly submitted a stalking horse bid of $15.9 billion to win a court-run auction.

Continued closures

After taking over, Pappas said it would focus on enhancing On The Border’s menu, operations and guest experience as part of an effort to stabilize the business. Despite the ownership change, Pappas has continued to reduce its footprint through additional On The Border restaurant closures. Other local impacts include New Brunswick and Paramus.

A spokesperson for the company told NJBIZ that no additional statements would be made right now. However, in coming weeks there will be “more information about next steps for the brand.”

Pappas’ portfolio includes Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bar-B-Q, Pappas Burger, Yiayia’s Greek Kitchen and Pappas Bros. Steakhouse.