What Darden's Acquisition Of Chuy's Means For The Beloved Chain

Darden Restaurants recently announced that it has acquired the beloved Tex-Mex chain Chuy's — which has 101 locations throughout 15 states — for $605 million. Darden Restaurants counts Ruth's Chris Steak House, Olive Garden, and some of your other favorite chain restaurants among the many brands it owns. In a press release issued by Darden Restaurants, Chuy's CEO and president, Steven Hislop, said, "Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures."

Known for its quirky décor and freshly made menu items, Chuy's commands a loyal following among diners who have a taste for Mexican-inspired fare. As reported by AP News, there's a hope that the acquisition will lead to more locations, specifically in areas unfamiliar with the chain. As for Darden Restaurants, CEO Rick Cardenas states that Chuy's has "strong performance and growth potential," which will hopefully offset some of the challenges faced by Darden brands when it comes to decreased sales, something that's been attributed to inflation per AP News. Considering that some restaurants have mulled over adding an inflation fee to customers' checks, it appears this issue is a major concern throughout the industry.

While Chuy's enjoys a generally favorable reputation, the chain has experienced some issues as of late. Nation's Restaurant News reported on two Chuy's closures in 2024, which affected locations in Lakewood, Colorado and Kansas City, Missouri. At the time, there was no mention of the acquisition, but Chuy's CEO Steven Hislop was quoted as saying, "We plan on opening between six to eight new restaurants in our core markets" in 2024.

While Chuy's once appeared on a list of Daily Meal's best American Tex-Mex chains, restaurant changes have made customers somewhat disillusioned leading up to the acquisition. On Reddit, some expressed that the restaurant was never able to bounce back after COVID-19 menu changes. Others worried that the acquisition could bring an end to Chuy's "making everything from scratch" mentality. At a time when change is abundant, the road ahead could be questionable for Chuy's as a fan-favorite.