A well-known Tex-Mex restaurant chain has found a new home. A major restaurant group has recently acquired a Texas-based chain, expanding its menu to include Tex-Mex dishes.
In the current landscape where many restaurant chains, like Red Lobster, are struggling to stay afloat, some are thriving despite the challenges.
Interestingly, the company that used to own Red Lobster has now added a popular Tex-Mex chain to its portfolio.
According to the source, Darden Restaurants is acquiring Chuy’s for around $605 million.
This is the same parent company that owns Olive Garden, LongHorn Steakhouse, Yard House, and other well-known chains.
Both Darden’s and Chuy’s boards have unanimously approved the acquisition, which is expected to be finalized later this year, pending approval from Chuy’s shareholders.
Chuy’s Holdings Inc., established in Austin, Texas, in 1982, currently operates 101 restaurants across 15 states and employs 7,400 people.
The chain is famous for its unique decor and fresh food, including handmade tortillas and sauces. All of Chuy’s restaurants are company-owned and operated.
The acquisition comes at a time when both Darden and Chuy’s have been facing reduced customer traffic due to inflation concerns, as reported by the Seattle Times.
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Darden, based in Orlando, Florida, runs over 1,900 restaurants and employs 190,000 people.
Its portfolio also includes Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s, and Bahama Breeze.
Adding Chuy’s to their lineup means Darden now owns a beloved Texas favorite. Fans are hoping that the quality remains high, as there is a common concern that smaller brands might suffer when they join bigger corporations.