One of Houston's biggest restaurant families just made a bold new grab in the Tex-Mex world. Pappas Restaurants has officially taken over On The Border Mexican Grill & Cantina, the company confirmed this week, cementing a deal that brings two Texas-born casual Tex-Mex brands under the same umbrella after a lengthy bankruptcy sale process. Pappas says it has already started tinkering with menus and operations at the chain's remaining restaurants.
Pappas confirms the acquisition
In a press release distributed via PR Newswire, Pappas said the deal, which the release noted closed in May 2025, officially folds On The Border into the Pappas portfolio and described the brand as having been “woven into the fabric of Texas dining.” The release also stated that, under Pappas ownership, the chain has already gone through a sweeping menu overhaul.
How the sale unfolded
Pappas first stepped in as a stalking-horse bidder and put up $10 million in debtor-in-possession financing to keep On The Border operating during its Chapter 11 case, according to Restaurant Dive. The company then came out on top in a court-supervised auction in May 2025, Dallas Business Journal reported.
A shrunken chain, for now
On The Border filed for Chapter 11 protection in March 2025 and shuttered about 40 underperforming locations earlier in the year as part of its restructuring, the Houston Chronicle reported. The Chronicle and other industry coverage note that the brand is now running a leaner operation, with roughly 60 company-owned restaurants across 18 states, plus franchised locations.
Pappas' playbook
Pappas, the family-run Houston group behind Pappadeaux, Pappasito's Cantina and Pappas Bros., says it operates more than 100 locations across the country and plans to apply what it calls a “proven operational model” to modernize On The Border, according to the company release. Company materials say teams have already “enhanced food quality, strengthened operations and elevated the overall guest experience” at certain sites.
What diners may notice
Executives say menu and service tweaks are already rolling out, but the company has not shared a detailed public timeline for broader rebranding efforts, the Chronicle noted. For regulars that likely translates into gradual menu refinements and behind-the-scenes improvements over the coming weeks and months rather than an overnight transformation.
Local context and next steps
Pappas' winning bid last May drew early attention and was closely watched as On The Border navigated bankruptcy. For now, the surviving restaurants appear set to be the main laboratory for Pappas' early changes while the company sizes up whether deeper shifts or expansion make sense down the line.
