Darden Restaurants recently announced that it has acquired beloved Tex-Mex chain Chuy's — which operates 101 locations in 15 states — for $605 million. Darden Restaurants counts Ruth's Chris Steak House, Olive Garden and a few of your other favorite restaurant chains among the many brands it owns. In a press release from Darden Restaurants, Chuy's CEO and President Steven Hislop said, “Darden shares many of our core values, particularly our operating philosophy and strong team member cultures.”
Known for its quirky decor and freshly prepared menu items, Chuy's has a loyal following among diners who enjoy Mexican-inspired cuisine. According to AP News, there's hope that the acquisition will lead to more locations, particularly in areas the chain isn't familiar with. As for Darden Restaurants, CEO Rick Cardenas says Chuy's has “strong performance and growth potential,” which will hopefully offset some of the challenges Darden brands have faced with declining sales, which AP News has attributed to inflation. Given that some restaurants have considered adding an inflation fee to customers' bills, it seems like this is a major issue across the industry.
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Chuy's has faced instability over the past year
While Chuy's generally has a good reputation, the chain has faced some struggles of late. Nation's Restaurant News reported on two Chuy's closures in 2024, affecting locations in Lakewood, Colorado and Kansas City, Missouri. At the time, the acquisition was not discussed, but Chuy's CEO Steven Hislop was quoted as saying, “We plan to open six to eight new restaurants in our core markets in 2024.”
Though Chuy’s was once listed as one of Daily Meal’s top U.S. Tex-Mex chains, restaurant changes have left customers somewhat disillusioned in the run-up to the acquisition. On Reddit, some suggested the restaurant could never recover from COVID-19 menu changes. Others worried the acquisition could end Chuy’s “make everything from scratch” mentality. In a time when change is everywhere, the path forward for Chuy’s as a fan favorite could be questionable.
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