Overview
- The chain’s corporate operator closed all company‑owned U.S. restaurants effective Friday, June 12, 2026, leaving independently run franchise sites open in several states and South Korea.
- OTB Hospitality and parent Pappas Restaurants announced the move after a year of restructuring that followed On The Border’s March 2025 Chapter 11 filing and its purchase by Pappas.
- Company statements say the immediate priority is staff support, but the operator has not detailed specific severance, benefits, or rehiring plans for displaced employees.
- Multiple workers reported very short notice of the shutdowns, with at least one employee saying they had only two days to find new work, and local reports documented abrupt store closures.
- The closures reflect long‑running pressures on casual dining—rising labor and food costs, falling traffic, and shifting habits—and OTB Hospitality says it is exploring a range of strategic options for the brand.