On the Border has just 5 restaurants left
On the Border reduces its footprint to just five restaurants following corporate closures.
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On the Border has closed all its corporate-owned restaurants, reducing its locations to just five in the U.S. The brand, recently acquired from bankruptcy, has faced a significant decline in unit count over the years, struggling to stabilize despite various marketing initiatives. Following bankruptcy, Pappas Restaurants aimed to modernize the brand and improve operations.
Why It Matters
This suggests potential territory implications for franchisees considering casual dining investments, as the closure of corporate units may limit availability and signal broader challenges within the sector.
On the Border, the Tex-Mex restaurant chain, has drastically scaled down its operations, closing all corporate-owned locations and now operating only five stores in the United States. This significant reduction follows a history of closures leading up to its bankruptcy last year when it had about 60 company-operated restaurants. The closures represent a critical low point for the brand, which had 138 locations in 2021, 133 at the start of 2023, and was projected to have around 120 at the start of 2025.
The company's decision to close its locations was described as “an incredibly tough decision,” with gratitude expressed towards loyal guests and team members who had supported the chain through challenging times. After being acquired by Pappas Restaurants out of Chapter 11, On the Border aimed to improve its operations, modernize the menu, and stabilize its brand. However, efforts like launching a queso-focused loyalty program and adopting tiered loyalty strategies in 2023 were insufficient to halt the ongoing decline.
The closing trend illustrates broader challenges within the casual dining sector, especially for brands unable to capitalize on market opportunities. Many successful casual dining chains have managed to reverse declines through value-oriented strategies and operational investments, while On the Border has struggled, likely due to its financial constraints following new ownership and bankruptcy.
