Popular Tex-Mex chain abruptly shutters remaining restaurants across America amid industry struggles

After more than four decades of serving fajitas, queso and margaritas, On the Border Mexican Grill & Cantina has said, "adios."

The Dallas-founded Tex-Mex chain is closing all remaining company-owned restaurants nationwide, after years of declining traffic, rising costs and a 2025 bankruptcy filing, the company said.

The move follows the chain's Chapter 11 restructuring in 2025 and subsequent acquisition by Houston-based Pappas Restaurants.

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A statement posted on the restaurant chain's website called it "an incredibly tough decision."

It added, "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."

OTB Hospitality, the entity created by Pappas Restaurants to operate On the Border locations, told Fox News Digital in a statement that the decision "follows a thorough evaluation of the business and was not made lightly."

The company said it's "evaluating the future of the On the Border brand and exploring a range of strategic options" while focusing on supporting employees affected by the closures.

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The shutdown marks a dramatic fall for a chain founded in Dallas in 1982 that helped popularize Tex-Mex dining across the country.

At its peak, On the Border operated over 150 restaurants and became known for sizzling fajitas, tableside chips and signature margaritas.

The chain's struggles mirror broader challenges facing the casual dining industry, where rising labor costs, inflation and changing consumer habits have put pressure on once-dominant restaurant brands.

"We appreciate the loyalty of our guests and the dedication of our employees over the years," the company said.

On social media, many lamented the loss of On the Border as another casual dining staple casualty.

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One commenter called On the Border "the least 'chain' of chain restaurants. RIP" — while another person simply pointed out what she believed led to its downfall.

"Because y'all screwed up the margarita mix and hot sauce," she wrote.

Not every On the Border restaurant is disappearing.

The company said franchise locations in California, Florida, Nevada, South Dakota and South Korea operate independently and will remain open.

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In recent years, several national chains have closed locations, filed for bankruptcy protection or undergone restructuring efforts.

Yet, even as one Tex-Mex institution fades, another is attempting a comeback.

Chi-Chi's, a chain synonymous with chimichangas and deep-fried ice cream in the 1980s and 1990s, celebrated the opening of its first new location in two decades last October in Minnesota.

Michael McDermott, founder of the new Chi-Chi's and son of one of the original chain's co-founders, told Fox News Digital last year that he's fielded offers from potential franchisees and any expansion will likely "follow the same path that Chi-Chi's did with focusing on the Midwest and East Coast."

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"So, I think there is an opportunity there but, obviously, we've got to make sure this one works."