Overview
- OTB Hospitality announced Friday that it closed all company-owned On The Border restaurants by the end of day June 12, 2026 after a corporate review of the business.
- Independently owned franchise locations in South Dakota, Florida, Nevada, California and South Korea will remain open because they operate separately from the company chain.
- The chain filed for Chapter 11 in March 2025 and was acquired by Pappas Restaurants in May 2025, a restructuring that led to repeated downsizing and left the brand with 33 listed locations by mid-2026.
- Employees at some company sites reported short notice of the shutdown, with at least one worker saying she had only two days to find new work, prompting complaints about sudden disruption and unclear support.
- OTB says it is evaluating strategic options for the brand and focusing on employee support, a choice that reflects wider pressure on casual-dining chains from rising food and labor costs and could shape future franchise or sale choices.