As On The Border Mexican Grill & Cantina continues to reposition itself for success in the wake of Chapter 11 bankruptcy, the Tex-Mex chain recently shuttered two of its four New Jersey locations.
Following closures in New Brunswick and Paramus, the brand has remaining outposts in Mount Laurel and Princeton, a company representative confirmed to NJBIZ.
In a statement, the spokesperson described the decision to permanently close the sites as “difficult.” However, they said it will enable On The Border “to focus our time and resources on our remaining locations and the continued success of the brand.
“We remain committed to delivering great food, warm hospitality, and a memorable dining experience at all On The Border restaurants,” the representative said, adding, “We are incredibly grateful for your support over the years. It has truly been our pleasure to serve this community.”
Once a popular casual dining chain with more than 150 locations, On The Border has wound down dozens of underperforming sites while it worked through the bankruptcy process last year. Locally, that wave of closures impacted Tom River.
Changing tastes
Founded 44 years ago in Dallas, On The Border is known for its fajitas, margaritas and endless chips and salad. Similar to other brands that declared bankruptcy over the past year, such as TGI Fridays and Red Lobster, On The Border peaked in the 1990s and early 2000s when casual dining was especially popular.
Similar to its rivals, On The Border has also experienced declining traffic in recent years as consumers pull back spending at full-service eateries. It has also struggled to retain workers as well as faced growing costs as minimum wages rose.
Citing inflationary pressures, rising labor costs and changing consumer behavior, the chain filed for Chapter 11 in March 2025. Two months later, it was acquired by Houston-based Pappas Restaurants.
The family-owned and operated restaurant group reportedly submitted a stalking horse bid of $15.9 billion to win a court-run auction.
Now under new leadership, On The Border is operating with a leaner portfolio of roughly 55 outposts across the U.S. and working to stabilize the business.
After taking over the brand, Pappas said it would focus on enhancing On The Border’s menu, operations and guest experience “while honoring the brand’s history and fan-favorite offerings,” the group said in a press release. Pappas Restaurants also said it will use its experience with high-performing restaurant brands to “strengthen and modernize On The Border locations.”
The group’s portfolio includes Pappadeaux Seafood Kitchen, Pappasito’s Cantina, Pappas Bar-B-Q and Pappas Bros. Steakhouse.
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