If you’ve enjoyed On The Border’s sizzling fajitas and frozen margaritas, you might wonder who’s behind this popular Tex-Mex chain. The restaurant known for its border-style Mexican food has changed hands several times throughout its history.
On The Border Mexican Grill & Cantina is currently owned by Argonne Capital Group, an Atlanta-based private investment firm that acquired the restaurant chain from Golden Gate Capital.
What started as a single restaurant founded by three friends in Dallas, Texas in 1982 has grown into a nationwide chain with over 150 locations. However, the company has faced challenges recently. In early 2023, On The Border filed for bankruptcy after closing about 40 restaurants, showing the difficulties many casual dining establishments face in today’s competitive restaurant landscape.
Key Takeaways
- Argonne Capital Group currently owns On The Border Mexican Grill & Cantina after purchasing it from Golden Gate Capital.
- The Tex-Mex restaurant chain began in 1982 with a single location in Dallas and has expanded to more than 150 restaurants nationwide.
- On The Border recently faced financial challenges, filing for bankruptcy in 2023 after closing approximately 40 restaurant locations.
History of On the Border
On The Border Mexican Grill & Cantina has changed ownership several times since its creation in the 1980s while expanding from a single Texas location to a nationwide Tex-Mex restaurant chain.
Founding and Early Years
On The Border began with three friends who opened the first restaurant in October 1982 in Dallas, Texas. The founders wanted to create a unique Tex-Mex experience that would stand out in the restaurant scene.
Their vision was to offer authentic border-style Mexican food with generous portions and a lively atmosphere. The original location quickly gained popularity among Dallas locals who enjoyed the fresh ingredients and bold flavors.
The restaurant’s distinctive Tex-Mex menu featured hand-pressed tortillas, mesquite-grilled meats, and freshly made guacamole, setting it apart from other Mexican restaurants of that era. Their commitment to quality and authentic border town recipes helped establish a loyal customer base.
Expansion and Growth
Following the success of the original Dallas location, On The Border began expanding throughout Texas and eventually across the United States. The restaurant’s casual dining concept and festive cantina atmosphere appealed to a wide audience.
Throughout the late 1980s and 1990s, the chain grew steadily, opening new locations in major metropolitan areas. Each restaurant maintained the founding principles of serving generous portions of authentic Tex-Mex cuisine in a vibrant setting.
The brand became known for its fajitas, margaritas, and tableside guacamole preparation. These signature offerings helped distinguish On The Border from competitors in the growing casual dining segment of the restaurant industry.
Growth continued as the concept proved successful across different regions of the country, adapting while maintaining its Texas roots.
Acquisition by Brinker International
In the 1990s, Brinker International acquired On The Border, adding the Tex-Mex chain to its portfolio of restaurant brands. Brinker, a Dallas-based restaurant company, was known for operating Chili’s Grill & Bar and other successful concepts.
Under Brinker’s ownership, On The Border experienced significant expansion across the United States. The corporate backing provided resources for growth while standardizing operations across locations.
Brinker helped refine the On The Border concept while maintaining its authentic Tex-Mex roots. The chain benefited from Brinker’s extensive experience in the casual dining sector and its sophisticated marketing and operational systems.
This period saw On The Border transform from a regional chain to a national brand with a presence in many states across America.
Ownership Changes
In July 2010, Brinker International sold On The Border to OTB Acquisition LLC, an affiliate of Golden Gate Capital, in a deal valued at $180 million. This marked a significant change for the Tex-Mex chain as it separated from Brinker’s restaurant portfolio.
Golden Gate Capital, a private equity firm, took over ownership with plans to strengthen the brand and continue its growth. The transition allowed On The Border to operate as a standalone entity rather than as part of a larger restaurant group.
In subsequent years, ownership changed again when Argonne Capital Group acquired the chain from Golden Gate Capital. These ownership changes brought new perspectives and strategies to the restaurant chain.
Throughout these transitions, On The Border continued to operate with its original concept of serving authentic Tex-Mex cuisine in a festive atmosphere, maintaining the spirit of its Dallas origins.
Ownership and Management
On The Border Mexican Grill & Cantina has changed hands multiple times throughout its history. The popular restaurant chain has been owned by several investment groups, each bringing different strategies to the business.
Current Owners
On The Border is currently owned by Argonne Capital Group, which acquired the Mexican restaurant chain from Golden Gate Capital. The acquisition was made through Border Holdings, LLC, an affiliate of Argonne Capital Group. Before Golden Gate Capital, the restaurant chain was part of Brinker International’s portfolio.
Brinker International sold the brand to Golden Gate Capital in 2010. This sale allowed Brinker to focus on its core brands like Chili’s Grill & Bar.
The 157-unit casual dining chain has maintained its Mexican food concept throughout these ownership changes, though each owner has brought different growth strategies.
Management Structure
The management team at On The Border operates under Argonne Capital Group’s oversight. The company maintains a traditional restaurant management structure with operations divided by regions and individual locations.
Each restaurant has:
- General Manager
- Assistant Managers
- Kitchen Manager
- Front-of-house staff
- Back-of-house staff
The corporate team includes executives responsible for:
- Menu development
- Marketing strategies
- Supply chain management
- Franchise relations
This structure allows for consistent brand experience across all locations while giving individual restaurants some flexibility to serve their local markets.
Financial Performance
While specific revenue figures aren’t publicly available, On The Border has maintained a significant presence in the casual dining Mexican restaurant segment. The chain’s 157 units represent substantial market share in this competitive sector.
Golden Gate Capital’s decision to sell to Argonne likely reflected their investment strategy rather than the brand’s performance. Private equity firms typically hold restaurant chains for 5-7 years before selling.
The brand has faced the same industry challenges as other casual dining restaurants:
- Rising food costs
- Labor challenges
- Changing consumer preferences
- Competition from fast-casual concepts
Despite these challenges, On The Border continues to operate across multiple states and maintains its position as one of America’s recognizable Mexican casual dining brands.
On the Border’s Culinary Offerings
On The Border Mexican Grill & Cantina serves up bold Tex-Mex flavors that have delighted customers since 1982. Their menu showcases authentic recipes with a Texas twist, featuring fresh ingredients and generous portions.
Signature Dishes
On The Border is known for its sizzling fajitas, which arrive at the table on hot skillets with grilled peppers and onions. These come with warm flour tortillas and all the fixings. Their famous Border Sampler lets guests try several favorites at once, including quesadillas, chicken wings, and signature guacamole.
Their hand-rolled enchiladas are another crowd-pleaser. Guests can choose from several fillings like seasoned ground beef, shredded chicken, or cheese, all topped with their house-made sauces.
The restaurant takes pride in its fresh-made salsa and tableside guacamole, prepared right in front of guests. Many dishes feature their special “Border Sauce,” a secret recipe that adds a unique flavor to their Tex-Mex creations.
Menu Variety
The menu at On The Border goes beyond typical Tex-Mex fare. While tacos and enchiladas are staples, they offer a wide variety of options to please every palate.
Their selection includes:
- Border Bowls: Protein-packed bowls with fresh vegetables
- Grande Burritos: Oversized and stuffed with flavorful ingredients
- Chimichurri Tacos: A unique fusion of Mexican and Argentinian flavors
- Sizzling Mesquite Grill: Featured items like ribs and steak
For lighter options, On The Border offers fresh salads like the Fajita Salad and Grande Taco Salad. Their Borderized specialties add Tex-Mex twists to familiar favorites.
The bar menu features signature margaritas made with premium tequilas. They offer both traditional and fruity options, with seasonal specialties rotating throughout the year.
Nutrition and Allergen Information
On The Border takes dietary needs seriously. They provide comprehensive nutrition information for all menu items on their website and in restaurants upon request.
For guests with allergies, they offer a detailed allergen menu highlighting common allergens like gluten, dairy, nuts, and shellfish. Their staff is trained to handle allergy concerns and can help guests navigate menu options.
The restaurant offers several healthier choices, including:
- Grilled fish and chicken options
- “Border Smart” items with fewer calories
- Customizable dishes where guests can substitute ingredients
Vegetarian options are clearly marked on the menu. Many dishes can be made vegetarian by substituting beans for meat. Their kitchen staff is willing to accommodate special requests when possible.
For those watching calories or carbs, On The Border provides nutritional breakdowns to help guests make informed choices while still enjoying their Tex-Mex favorites.
Location and Presence
On the Border Mexican Grill & Cantina has built a significant footprint across North America with some international ventures. The restaurant chain’s strategic placement in various regions has shaped its identity as a leading Mexican food destination.
United States Locations
On the Border has restaurants spread across many states in the U.S., bringing their Tex-Mex cuisine to diverse markets. The chain first opened in Dallas, Texas, establishing its roots in a state known for its love of Mexican-influenced cuisine.
The restaurant has expanded to many major markets including Michigan and New York, offering their signature mesquite-grilled fajitas to customers across the country.
Their original location opened on Knox & Travis Street in Dallas, which helped establish the brand’s Texas identity. This location laid the foundation for what would become a nationwide chain of Mexican restaurants.
Many locations feature large bar areas and outdoor patios, creating a friendly atmosphere for both dining and socializing. The restaurant’s presence varies by region, with some states having multiple locations while others may have just a few.
International Expansion
On the Border has ventured beyond U.S. borders to bring their Mexican dishes to international markets. One notable international presence is in South Korea, where the brand has found success introducing American-style Mexican food to Asian consumers.
Seoul has become a key city for On the Border’s international strategy, with several restaurants operating in this metropolitan area. The menu in international locations often includes the chain’s classic items while incorporating some localized options.
The international expansion represents the company’s effort to build global brand recognition for their Tex-Mex offerings. These overseas locations typically maintain the colorful, festive atmosphere found in U.S. restaurants.
International growth faced challenges as noted in recent reports that the chain has filed for bankruptcy, which may impact their global footprint.
Impact of Locations on Brand
The strategic placement of On the Border restaurants has helped shape their brand identity as an accessible Mexican dining option. High-traffic areas near shopping centers and business districts have increased visibility and customer access.
Restaurant design plays a crucial role in the brand experience, with most locations featuring colorful décor and a lively atmosphere. The consistent look and feel across locations helps customers know what to expect regardless of which restaurant they visit.
Local demographics often influence menu adjustments and promotions at different locations. The chain’s ability to adapt to regional preferences while maintaining core offerings has been important for their longevity.
Location selection has allowed On the Border to compete effectively against both local Mexican restaurants and other national chains in the same category. Their presence in various markets has made their mesquite-grilled fajitas and other signature dishes recognizable to consumers across diverse regions.
Dining Experience and Services
On The Border Mexican Grill & Cantina offers a distinctive Tex-Mex dining experience in its over 150 locations. The restaurant blends authentic flavors with a casual atmosphere that appeals to a wide range of customers.
Casual Dining Atmosphere
The restaurant features a vibrant, family-friendly environment with colorful décor inspired by Mexican and Texan cultures. Dining areas typically include a mix of booths and tables, creating comfortable spaces for both intimate dinners and larger group gatherings.
Each location maintains a lively atmosphere with upbeat music playing in the background. The restaurant’s signature look includes warm colors, southwestern artwork, and rustic elements that reflect its Tex-Mex heritage.
Many locations feature outdoor patios for seasonal dining, perfect for enjoying margaritas and appetizers in warmer weather. The bar area serves as a focal point in most restaurants, offering a full selection of beverages including their famous margaritas.
The overall ambiance strikes a balance between casual and festive, making it suitable for various dining occasions from family meals to after-work gatherings.
Customer Service Philosophy
On The Border emphasizes friendly, attentive service as a cornerstone of their dining experience. Staff members are trained to provide detailed menu information, including ingredients and spice levels of various dishes.
The restaurant prides itself on accommodating dietary preferences and restrictions whenever possible. Many locations offer customizable menu options to ensure all guests find something they enjoy.
Wait staff typically check in regularly throughout the meal to ensure satisfaction. The company culture encourages servers to be knowledgeable about their BOLD flavors of Texas and Mexico that have been part of their menu for over 40 years.
The restaurant aims to create a welcoming atmosphere where families and friends can relax and enjoy their meal without feeling rushed. Despite recent financial challenges, the chain continues to emphasize quality service.
Online Ordering and Delivery Options
On The Border has expanded its service model to include comprehensive digital ordering options. Their user-friendly website and mobile app allow customers to place orders for pickup or delivery with just a few clicks.
The restaurant partners with major food delivery platforms such as DoorDash, Grubhub, and Uber Eats to expand their reach. Many locations offer special promotions exclusively for online orders to encourage digital engagement.
Their online menu includes individual meals, family meal kits, party platters for larger gatherings, and customization options for most dishes. The restaurant has also added contactless pickup options to their online ordering system.
Competitors and Industry Position
On The Border faces tough competition in the crowded Tex-Mex restaurant space where several major chains vie for market share. The company has positioned itself as a full-service Mexican restaurant with a distinct brand identity among rivals.
Comparison with Other Tex-Mex Chains
On The Border’s primary competitors include Chuy’s, Taco Cabana, and Baja Fresh. These Tex-Mex chains compete directly for similar customer bases seeking authentic Mexican cuisine in a casual dining environment.
Chuy’s offers a quirky atmosphere with made-from-scratch Tex-Mex dishes, positioning itself as a fun, vibrant alternative. Del Taco also competes in this space, though it operates more in the quick-service segment rather than full-service dining.
Unlike Romano’s Macaroni Grill and Maggiano’s Little Italy, which focus on Italian cuisine, On The Border has carved out its niche in Mexican food. This specialization helps it maintain a focused brand message compared to more diversified restaurant groups.
Market Share and Industry Rank
On The Border holds a significant position in the Tex-Mex segment of the restaurant industry. The chain generates substantial revenue, with competitors like Kona Grill, Entertainment Cruises, and The Capital Grille operating in similar market spaces but with different cuisine focuses.
The company’s CEO, Tim Ward, maintains an 84% approval rating, suggesting strong leadership during competitive market conditions. This leadership has helped On The Border navigate the challenging restaurant landscape.
With numerous locations across the country, On The Border competes against both regional Tex-Mex chains and broader casual dining restaurants. The brand must continuously innovate its menu and dining experience to maintain its market position against both established chains and emerging local Tex-Mex concepts.
Community Engagement and Corporate Social Responsibility
On The Border Mexican Grill & Cantina demonstrates its values through various community programs and environmental initiatives. Their efforts show how restaurant chains can make positive impacts beyond serving food.
Local Community Initiatives
On The Border has built a strong reputation for supporting local communities through various partnerships and programs. The restaurant chain has notably partnered with No Kid Hungry, an organization dedicated to ending childhood hunger in America. This collaboration highlights their commitment to addressing important social issues.
The company encourages their local restaurant managers to engage with neighborhood events and charitable causes. Many locations host fundraising nights where a percentage of sales goes to local schools, sports teams, and community organizations.
Their “Fiesta Funds” program makes it easy for community groups to raise money through special dining events. Participants receive a portion of the sales generated during these events.
Sustainability Practices
On The Border has been working to reduce their environmental footprint across their restaurant operations. They’ve implemented water conservation measures in many locations, installing low-flow faucets and training staff on water-saving practices.
Their packaging choices have evolved to include more recyclable and compostable materials. Many locations have switched to biodegradable to-go containers and reduced single-use plastics.
Energy efficiency is another focus area. The restaurant chain has upgraded to LED lighting in numerous locations and installed more energy-efficient kitchen equipment during renovations.
Some On The Border restaurants have started sourcing ingredients locally when possible, supporting regional farmers while reducing transportation emissions. These efforts reflect the growing trend of corporate social responsibility in the restaurant industry.
Branding and Marketing
On The Border Mexican Grill & Cantina has developed distinctive branding strategies to stand out in the competitive casual dining market. Their marketing efforts blend traditional advertising with modern digital approaches while maintaining their authentic Mexican food positioning.
Advertising Strategies
On The Border’s advertising focuses on highlighting their fresh ingredients and authentic Mexican experience. After being acquired by Argonne Capital Group, the brand invested in refreshing their image. They showcase signature items like fajitas and margaritas in most campaigns.
TV commercials typically feature sizzling plates and vibrant restaurant atmospheres. The company uses regional targeting to adjust messages based on local preferences and market competition.
Billboard and print ads emphasize the “Border-style” experience with bright colors and appetizing food photography. Recent campaigns have highlighted their “Border-style” preparation methods to differentiate from competitors.
Social Media Presence
On The Border has strengthened its digital visibility by partnering with SOCi to improve customer engagement across platforms. They maintain active accounts on Facebook, Instagram, and Twitter that feature mouth-watering food photos and special promotions.
Their content strategy includes behind-the-scenes looks at food preparation and employee spotlights. User-generated content is frequently shared, especially customers enjoying their signature margaritas or fajitas.
The restaurant chain responds quickly to customer comments and reviews online. They’ve recently increased their use of short-form video content to showcase menu innovations and limited-time offers to younger audiences.
Promotions and Discounts
On The Border offers several recurring promotions that have become customer favorites. Their “Endless Enchiladas” and “$5 Margarita” specials drive significant traffic during slower weekdays.
Happy Hour specials feature discounted appetizers and drinks to boost early evening business. The restaurant’s loyalty program rewards frequent customers with points toward free menu items and exclusive offers.
As part of their brand turnaround efforts, they’ve introduced more value-focused combo meals.
Seasonal promotions tied to Cinco de Mayo and National Margarita Day create excitement and bring in new customers.
Family meal deals became popular during recent years, offering complete meals at competitive price points. Limited-time menu offerings keep the experience fresh and give customers reasons to return.
