Chili's Plans 30 New Locations a Year Through 2029

Brinker International outlined plans to open 20 to 30 new Chili's restaurants a year through fiscal 2029, according to Restaurant Dive, as the casual dining chain looks to convert a five-year sales turnaround into fresh unit growth at its Sept. 17 investor day.

The growth targets follow an unusual stretch for the brand. Chili's same-store sales rose 71% over five years, yet its company-operated U.S. store count actually fell, from 1,131 locations in fiscal 2022 to 1,110 in fiscal 2026. Last fiscal year marked a turn, with the system finally posting net unit growth. CEO Kevin Hochman called sustained growth a "completely new lever" for the brand.

Chief Financial Officer Mika Ware laid out four categories of development white space. The first is underpenetrated states like Washington, where Chili's has a single streetside unit against 35 to 40 locations for its closest competitors. The second is infill in strongholds like Texas, California and Florida, where eight new locations are already in the pipeline.

The third covers growing secondary markets across the Carolinas, Georgia, Virginia and the Washington, D.C. area.

The fourth is the middle of the country, where Chili's has spent years buying back territory that was once exclusively franchised and is now underdeveloped relative to the growth rights the brand already holds in all 50 states. Ohio was cited as one example where competitors with far smaller market share still outnumber Chili's locations.

Brinker sees other ways to grow, too. In expensive, densely populated markets, the company is considering converting existing restaurants rather than building from the ground up. Across its expansion markets, it has identified about 300 potential sites. A new Chili’s costs an estimated $5 million to $6 million to build, while newer restaurants are doing more than $5 million in volume. That compares with an average unit volume of $3.3 million in 2023.

For franchise development teams, Brinker's plans show how much the growth opportunity can vary from one market to the next. The company is backing up its expansion plans with volume and investment figures while identifying where it sees room for more restaurants. Some of those opportunities are in markets where Chili's previously closed locations or bought back territory from franchisees. The question for franchise candidates is whether any of that white space will eventually become available for franchise development or remain part of the company's own growth plans.