Pappas Restaurants will be the new owner of On The Border.
The restaurant group was the winning bidder during a bankruptcy auction. In a news release, Pappas Restaurants said it will use its operational model to “strengthen and modernize” On The Border restaurants.
“We’re excited to welcome On The Border to the Pappas family,” Mike Rizzo, CEO of Pappas Restaurants, said in a statement. “On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future. Our shared Texas roots and passion for hospitality make this a natural fit.”
Pappas Restaurants had previously submitted a $15.9 million stalking horse bid to acquire the chain out of bankruptcy. The funds consist of a credit bid, additional cash consideration, and a $750,000 good faith deposit.
The family-owned Pappas Restaurants, based in Houston, operates more than 80 locations across nine concepts: Pappadeaux Seafood Kitchen, Pappas Bros. Steakhouse, Pappasito’s Cantina, Pappas Delta Blues Smokehouse, Pappas Burger, Pappas Seafood House, Pappas Bar-B-Q, Little’s Oyster Bar, and Dot Coffee Shop.
The Pappas family’s involvement in the restaurant business dates back to 1897 when their grandfather, H.D. Pappas, emigrated from Greece to the U.S. and opened restaurants across Tennessee, Arkansas, and Texas.
On The Border declared bankruptcy in early March after dealing with declining revenues, labor shortages, rising costs, and “a dire lack of liquidity.” The chain shuttered dozens of underperforming units before filing for bankruptcy.
At its peak, the brand operated over 150 locations across the U.S. and internationally. Now, On The Border oversees 60 company-owned restaurants across 18 states and has 20 franchised locations in the U.S. and South Korea.
Pappas Restaurants will look to boost On The Border’s menu, operations, and guest experience while committing to the chain’s history, core offerings, and branding around Tex-Mex cuisine.
“On The Border has always stood out for its energy and bold flavors—it’s a brand we’ve known and respected for years,” said Chris Pappas, co-owner of Pappas Restaurants, in a statement. “This gives us the chance to bring our passion for Tex-Mex to more guests, and we’re excited to build on what makes both brands special.”
The transaction will be completed in the coming weeks.
