Chili’s Announces Restaurant Expansion Plans Following Business Turnaround
After several years focused on revitalizing its existing operations, Chili’s is preparing for a period of new restaurant growth. The casual-dining chain plans to achieve annual unit growth of 2–3 percent and open up to 30 locations per year by fiscal 2029. With over 300 potential trade areas identified across the U.S., the company has already approved 15 restaurants for each of the next two years, with an additional 46 deals in progress. Chili’s is exploring multiple expansion strategies including infill development within existing markets, growth on the edges of metropolitan regions, and conversions such as repurposing properties or acquiring small regional chains. The company aims to maintain financial discipline by prioritizing quality over quantity while ensuring it has sufficient leadership resources through internal training programs like RISE and LEAD. New restaurants are expected to cost between $5 million and $6 million each but could deliver strong returns based on current average unit volumes of $5 million and operating margins above 18%. Chili’s also plans a significant remodeling initiative, targeting approximately 10% annual renovations starting in fiscal 2028.
Topics: real estate development restaurant growth unit economics