Chili’s Grill & Bar is a leading chain of casual dining restaurants widely popular for its Tex-mex menus. Established in Dallas, Texas in 1975 by Larry Lavine, Chili’s began as a neighborhood-style restaurant serving homemade food in a casual atmosphere. A winner of numerous culinary and best eatery awards, Chili’s menu features signature items such as baby back ribs, burgers, fajitas, and bottomless chips and salsa. The restaurant is commonly recognized for its low prices and specials as well as its quick
Chili’s grew quickly and is now in over 31 countries worldwide and employs over 100,000 people. Since 1983, Chili’s has been a wholly-owned subsidiary of Brinker International (NYSE: EAT), a casual dining restaurant management firm that also owns Maggiano’s Little Italy, a global Italian restaurant chain.
Chili’s company sales increased to $2.75 billion in fiscal 2016, a 10.1% increase from $2.5 billion in fiscal 2015. The increase was primarily driven by increased restaurant capacity. Chili’s company-owned restaurant capacity increased 12.8% compared to the prior year due to the acquisition of 103 Chili’s restaurants from a franchisee, and 8 new restaurant openings. The company’s average annual store sales grew to $3.0 million in fiscal year 2016.
Chili’s global reach allows the firm to operate 1,660 restaurants throughout the United States and 31 countries. Chili’s primarily leases their real estate, the majority being ground leases. The typical Chili’s lease provides for an initial term of up to 20 years on a pure triple net basis and often a corporate guarantee.
© 2017 Greysteel. All Rights Reserved.