'Iconic' Mexican Restaurant Chain Announces Major Change After Closing 77 Locations
It's joining another iconic chain. Andrew McCarty |May 11, 2025 9:56 AM EDT
Earlier this week Pappas Restaurants announced it was selected "as the prevailing bidder during the auction of On The Border Mexican Grill & Cantina." While the transaction is subject to court approval, the sale is expected to be finalized in the coming weeks. "This acquisition will bring together two iconic Texas-based restaurant brands and expand Pappas' presence in the Tex-Mex category by adding a nationally recognized concept that offers bold flavors at an accessible price point," Pappas Restaurants said of the sale. The move comes after On The Border closed 77 restaurants across 24 states due to underperformance or expected losses. On The Border Holdings Chief Restructuring Officer, Jonathan Tibus, said the company had been affected by "macroeconomic factors." "On The Border has been weighed down in recent years by macroeconomic factors that have negatively impacted the Company. Casual dining restaurants are acutely impacted by consumer sensitivities to eating out versus staying in," Tibus said in court records obtained by USA Today. The iconic Mexican restaurant chain elected to file for Chapter 11 bankruptcy and appears to have been saved by Pappas Restaurants. Chris Pappas, co-owner of Pappas Restaurants, raved about the iconic Tex- Mex chain and the cultural fit between the two chains. "We're excited to welcome On The Border to the Pappas family," Mike Rizzo, CEO of Pappas Restaurants said in a statement. "On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future. Our shared Texas roots and passion for hospitality make this a natural fit." Chris Pappas, co-owner of Pappas Restaurants, raved about the iconic Tex-Mex chain and the cultural fit between the two chains. "On The Border has always stood out for its energy and bold flavors—it's a brand we've known and respected for years," he said. "This gives us the chance to bring our passion for Tex-Mex to more guests, and we're excited to build on what makes both brands special." Page 50 | HOSPITALITY NEWS MAY
Powered by FlippingBook