On The Border Shuts Down Two New Jersey Sites Following Bankruptcy Sale
On The Border Mexican Grill & Cantina shuttered two of its four New Jersey spots in Paramus and New Brunswick. The state now has just two restaurants running.
On The Border Mexican Grill & Cantina shuttered two of its four New Jersey spots in Paramus and New Brunswick. The state now has just two restaurants running — in West Windsor and Mount Laurel.
Both sites vanished from the company's directory after closing this month. A layoff notice filed with the state Department of Labor showed 62 workers lost their jobs at the Paramus spot, with an effective date of March 13.
A company representative confirmed the closures to NJBIZ. The spokesperson called it a tough choice but said it lets the chain "focus our time and resources on our remaining locations and the continued success of the brand."
The Tex-Mex chain filed for Chapter 11 bankruptcy in March 2025. Pappas Restaurants snagged the company at auction two months later with a stalking horse bid of $15.9 billion.
The Houston-based restaurant group runs Pappasito's Cantina, Pappadeaux Seafood Kitchen, Pappas Bar-B-Q, and Pappas Bros. Steakhouse. Pappas seized control of the brand, aiming to boost operations and guest experience.
On The Border started in Dallas 44 years ago. The chain once ran over 150 spots worldwide but has axed dozens of weak-performing sites during bankruptcy proceedings.
The company blamed inflationary pressures, climbing labor costs, and shifting consumer behavior for its money troubles. Like TGI Fridays and Red Lobster, the chain hit its peak in the 1990s and early 2000s when casual dining thrived.
Traffic has dropped in recent years. Consumers have pulled back spending at full-service eateries. The chain has struggled to keep workers as minimum wages climbed.
Pappas said it would work to improve the menu and operations while honoring the brand's history and fan favorites. The group wants to use its experience with high-performing brands to strengthen and modernize spots.
The chain now runs about 55 restaurants across the United States. The two remaining New Jersey sites sit at the MarketFair shopping complex in West Windsor and in Mount Laurel.
