On The Border Mexican Grill & Cantina closes company-owned restaurants Friday
On The Border Mexican Grill & Cantina shut all of its company-owned restaurants after service on Friday. OTB Hospitality said the move followed a thorough evaluation of the business, and the chain is now weighing strategic options while its franchisees keep operating.
27 restaurants were shown as closed on the company’s website, leaving five franchised U.S. locations and one franchised location in South Korea still open. For customers, the immediate change is simple: only independently run sites in South Dakota, Florida, Nevada, California and South Korea remain available.
OTB Hospitality weighs next steps
“We are currently evaluating the future of the On The Border brand and exploring a range of strategic options,” OTB Hospitality said after the closures. The company also said, “This decision follows a thorough evaluation of the business and was not made lightly.”
“Our immediate focus is on supporting our team members through this transition and ensuring an orderly and respectful closure,” the company said. “We appreciate the loyalty of our guests and the dedication of our employees over the years.”
From 80 restaurants to 27 closed
80 restaurants were in the system last March when Houston-based Pappas Restaurants acquired the chain out of bankruptcy. Sales at On the Border fell nearly 33% last year, and its unit count was cut by 42%, leaving the brand with 57 restaurants at the end of last year according to Technomic.
33 units were listed on the website on Friday before the shutdown took effect, showing how quickly the footprint shrank before the company-owned base disappeared. OTB Hospitality said the franchise locations in South Dakota, Florida, Nevada, California and South Korea operate independently and will remain open.
What the chain keeps
1982 was the year On the Border was founded in Dallas, and the brand later reached 166 locations in 2007 before a long run of ownership changes. It was acquired by Chili's owner Brinker International in 1994, sold to Golden Gate Capital in 2010, and sold again in 2014 to Atlanta-based investment firm Argonne Capital Group.
$152 million in total sales and its status as the fifth-largest Mexican casual-dining chain in the country did not prevent the latest retreat in company-operated stores. OTB Hospitality said it will provide more information about the next steps in the next few weeks, leaving the franchised locations as the only remaining public footprint for the brand.
