To paraphrase Mark Twain, reports of Chiles' death have been greatly exaggerated.
Officials with the Dallas-based company said they have been following a spate of errors since an online article headlined “Chili's to close doors across America in 2024” incorrectly suggested that 1,500 of the company's restaurants would close. We are working to correct the information.
Clicking on the article reveals more truthful information. Chili's Grill & Bar is closing an underperforming restaurant, a move that is neither new nor unique in the business world. According to the linked MSN article, Chili's is one of 12 restaurant chains that are “going through significant transformation.”
While that may be true, a restaurant chain that has undergone a bigger transformation is Red Lobster, which just closed two locations in Dallas and over 50 locations across the U.S. Red Lobster filed for bankruptcy on May 19, 2024. Another chain that has been in the news recently is Foxtrot, a coffee shop and convenience store that closed four locations in Dallas and over a dozen other locations in April 2024, forcing customers and employees out of its stores in the middle of the day.
A Chili's representative said their team is “working around the clock to make sure our guests understand we're not going anywhere.”they chose not to give an interview Dallas Morning News, seems exhausted by the way bad information spreads so quickly. The company's responses regarding X include to-the-point comments such as “We're not shutting down.”
A spokesperson for Chile explained the following in a statement:
“Recently, there have been several articles and social conversations that contain misinformation and mischaracterizations about the state of our business. In fact, Chili’s experienced sales growth significantly above the restaurant industry average last quarter. Chili's is reported to be growing in popularity nationwide.
The statement further explained that the restaurant's operations are regularly reviewed. All chains are like that.
“Like all major national restaurant chains, we sometimes make the difficult decision to close. This is not a negative indicator of the overall health of our brand.”
Chili's parent company, Brinker International, reported sales of $1,108.9 million in the third quarter of fiscal 2024, compared to sales of $1,072.9 million in the third quarter of fiscal 2023. At Chili's, comparable restaurant sales increased 3.5%.
Texans were especially affected by the misinformation, as Chili's first opened on Greenville Avenue in Dallas in 1975. The company was sold in 1983 to restaurant entrepreneur Norman Brinker, who now owns and operates Maggiano's Little Italy alongside Chili's. The company remains headquartered in Dallas.
