California diners are losing the remaining locations of a longtime Tex-Mex restaurant chain as On The Border continues to shrink after filing for bankruptcy and shutting down most of its U.S. operations.
The Dallas-based chain filed for Chapter 11 bankruptcy protection in March 2025 after years of declining sales and increasing financial pressure. At the time, the company operated dozens of restaurants across the country but had already begun closing underperforming locations.
Bankruptcy led to widespread closures
On The Border’s financial troubles ultimately resulted in a dramatic reduction of its restaurant footprint. Earlier this month, the company closed all 60 remaining company-owned restaurants nationwide, leaving only a handful of franchised locations in operation.
California was among the states affected by the downsizing. The chain’s presence in the state has been reduced to just two franchise-operated restaurants in Escondido and San Diego’s Mira Mesa neighborhood, according to recent reports…