4 Signs On The Border Mexican Grill & Cantina Is Struggling

In 2025, the restaurant industry is facing one of its toughest periods yet. From beloved fast food chains to once-thriving fast-casual dining spots, many restaurant chains that once seemed untouchable are now fighting to stay afloat. Rising food costs, labor shortages, and shifting consumer habits are on the growing list of reasons behind restaurants struggling to turn a profit. Even those that attempt to adapt are finding that change alone is not always enough to secure long-term success.

One such chain fighting to maintain its place in the industry is On The Border Mexican Grill & Cantina. Known for its Tex-Mex cuisine, the brand has undergone numerous changes over the years, from company mergers to menu revamps. Since its story began after opening the original On The Border in 1982 in Dallas, Texas, the fast-casual chain has wooed customers with crowd-pleasing Tex-Mex specialties. Some of the chain's most popular offerings include its tableside guacamole, hand-pressed tortillas, and mesquite-grilled fajitas. Unfortunately, this is not proving to be enough in 2025, as On The Border is finding it increasingly difficult to regain its footing after a series of fiscal blunders. While it's still a familiar name in the casual dining sphere, the road ahead is proving to be very uncertain.

It's no secret that the pandemic made things difficult for restaurants. From struggling to make ends meet to going out of business entirely, the pandemic swallowed some restaurants whole while leaving others in unmanageable debt. On The Border Mexican Grill & Cantina has managed to survive, but survival alone hasn't been enough to restore its former success.

The pandemic, however, is not solely to blame. In the early 2000s, On The Border thrived as a go-to spot for Tex-Mex dining, but its profits have been shaky starting in 2008. Sales have been on a steady downward spiral since, with a bigger dip in the late 2010s that led into the early 2020s. A change in CEO and CFO in mid-2020 gave the company hope that it might once again achieve its former success, but this hope was seemingly short-lived.

While many restaurants saw rebounds deeper into the pandemic, On The Border failed to recapture its customer base. Like many, the brand faced pandemic-related supply chain disruptions. Even with a revamped menu mid-pandemic, ongoing organizational issues and the continued success of fast-casual Tex-Mex competitors like Chipotle and QDOBA left the brand at a disadvantage. Additionally, a decline in foot traffic at suburban shopping centers (where many of its locations are based) further hindered recovery. On The Border reported a 3% decline in sales in 2023, while its top competitors averaged an 11.8% increase the same year.

On The Border Mexican Grill & Cantina has been facing a wave of dissatisfied reviews, with longtime customers noticing a decline in food quality, service, and overall experience. One Reddit user reminisced, "It used to be so good back in the day. Best fajitas around." Another responded, "Yup. It really is a shadow of its former self." This sentiment is echoed across various platforms, where customers complain that the brand's once-popular dishes no longer live up to its previous standards.

Recent diners have also described their frustration. After a Reddit user announced that an On The Border restaurant in Nebraska had closed, a former patron of the restaurant responded, "Went to that place twice. With all the issues I saw, it doesn't surprise me." Others point to worsening service issues, including staffing shortages and disorganized management. One frequent customer shared in another Reddit post, "We eat regularly at an OTB and the decline there has been steep the past 12 months and is now approaching free-fall, with egregious misbilling, excuses about the internet being down, one server for 12 or more tables ... I actually overheard a waitress say they needed to cut back on the peppermints at the door to save money."

In February 2025, On The Border Mexican Grill & Cantina took a major hit, shutting down 40 of its locations across the country. This wave of closures suggests that the brand is struggling to maintain profitability in an increasingly challenging market. On The Border communicated that these lower-performing stores were cut in an effort to stabilize operations. Though the closures may seem sudden, the cantina had to act quick after creditor enforcement actions left the company with very limited options.

With fewer locations and a plethora of financial problems, On The Border now faces an uphill battle to remain relevant and in business. The chain will need to prove it can still compete by focusing on menu innovation, customer experience, and strategic marketing to attract diners. Only time will tell if On The Border is taking the correct steps for a comeback or is next on the chopping block.

​In March 2025, On The Border Mexican Grill & Cantina filed for Chapter 11 bankruptcy protection after facing overwhelming financial hurdles. The chain joins a growing list of casual dining restaurants that have filed for bankruptcy in the last year, including Red Lobster and Buca di Beppo. On The Border attributed part of this financial stress to inflation, which led to reduced customer spending and escalating operational costs. The chain also blamed rising minimum wages for its lack of financial success and claimed it couldn't retain employees.

The filings revealed that On The Border is in debilitating debt, owing 10,000 creditors more than $25 million. On top of closing its 40 poorly performing locations in February 2025, the dining chain is asking the courts to allow it to terminate leases for additional sites where restaurants have ceased operations. Currently, On The Border operates 60 company-owned restaurants in the U.S. and maintains 20 franchised locations domestically and in South Korea. Moving forward, the Tex-Mex chain intends to utilize the bankruptcy proceedings to sell a majority of its assets. The company is implementing operational upgrades in an attempt to overcome its financial decline, aiming to emerge stronger than before.