News Summary
Pappas Restaurants Inc., a Houston-based hospitality group, has acquired On the Border Mexican Grill & Cantina amidst its bankruptcy. This acquisition is poised to enhance Pappas’ footprint in the Tex-Mex dining sector, building on On the Border’s heritage and loyal customer base while addressing the challenges it faced before filing for bankruptcy in March 2025. Pappas aims to revitalize the brand through improved operations and menu offerings, indicating a strategic shift in the competitive restaurant landscape.
Houston, Texas
Pappas Restaurants Inc., a prominent hospitality group based in Houston, has successfully acquired On the Border Mexican Grill & Cantina in a competitive bidding war during the restaurant chain’s bankruptcy auction. This acquisition marks a significant step for Pappas as it expands its portfolio in the Tex-Mex dining segment.
On the Border has a rich history dating back to its founding in 1982 in the Dallas area. Known for its mesquite-grilled fajitas, homemade salsa, and refreshing margaritas, the chain had 80 locations across the United States and South Korea at the time of the acquisition. However, it filed for bankruptcy in early March 2025 due to a combination of surging labor costs, declining customer traffic, and rising inflation, factors that have affected many restaurants nationwide.
Pappas Restaurants has strategically placed itself in a strong position by initially providing $10 million to On the Border to assist with its Chapter 11 filing prior to the auction. This financial backing showcases Pappas’s commitment to stabilizing and revitalizing the brand after years of financial difficulties.
The acquisition aims to enhance the overall operations of On the Border, with Pappas Restaurants planning to improve its menu offerings and guest services. This move is also expected to complement Pappas’ existing Tex-Mex brand, Pappasito’s Cantina, which will further establish the company as a leader in the Tex-Mex dining market.
Under the leadership of CEO Mike Rizzo, Pappas Restaurants has expressed enthusiasm for incorporating On the Border into its family of restaurants. Rizzo emphasized the brand’s deep heritage and loyalty among its customers, suggesting that with the right adjustments, On the Border can regain its footing in a challenging market.
The restaurant industry has seen a tumultuous year, especially for chains that struggled with economic pressures. On the Border experienced multiple ownership changes between 1994 and 2010 before ultimately being acquired by Argonne Capital Group. The challenges it faced leading to bankruptcy are consistent with broader trends affecting the industry, where chain restaurants are adapting to a shifting economic landscape and evolving consumer preferences.
As Pappas Restaurants embarks on this new venture, industry experts will be monitoring how the acquisition impacts both On the Border and the wider Tex-Mex dining scene in the coming months. The company aims to leverage its experience and reputation in the hospitality sector to restore On the Border to its former prominence.
The acquisition represents a new chapter for On the Border, which has long been a staple of casual Tex-Mex dining, and it will be interesting to see how the changes implemented by Pappas Restaurants shape the future of this beloved chain.
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HERE Resources
Financial Troubles Hit On The Border Mexican Grill & Cantina in Dallas
Additional Resources
- Chron: Pappas Restaurants Acquires On the Border
- Wikipedia: Tex-Mex
- Eater: Little Pappas Seafood Opening
- Google Search: Pappas Restaurants
- Houston Chronicle: Pappas Restaurants News
- Google Scholar: Pappas Restaurants Acquisition
- CultureMap: Little Pappas Seafood Reopening
- Encyclopedia Britannica: Restaurant
