Darden Restaurants Acquires Austin-born Tex-Mex Chain Chuy's

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ICARO Media Group
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18/07/2024 20h22

In a recent acquisition, national restaurant group Darden Restaurants has added the popular Tex-Mex chain Chuy's to its portfolio, expanding its already impressive lineup of brands that include Olive Garden and LongHorn Steakhouse. The acquisition took place on July 17.

Chuy's was initially founded by Mike Young and John Zapp back in 1982 in Austin, Texas. Transforming a vacant barbecue restaurant space on Barton Springs Road, the duo quickly made a name for themselves with their authentic Tex-Mex cuisine, offering dishes such as enchiladas, creamy jalapeno dip, and margaritas. Alongside its delicious fare, Chuy's became renowned for its vibrant and lively atmosphere, complete with kitschy decor and an iconic Elvis Presley shrine.

After gaining popularity in Austin, Young and Zapp expanded their Tex-Mex empire by opening more locations across Texas. In 2006, the majority of the company was sold to private equity firm Goode Partners, marking a significant milestone for Chuy's. Following the acquisition, the chain ventured beyond its home state, with its first location in Franklin, Tennessee opening its doors in 2009. Chuy's continued its expansion across the country, and by 2012, the company went public.

Currently, Chuy's boasts locations in 15 states and recently unveiled its latest outpost in Austin's Mueller district this April. Alongside their Tex-Mex success story, Young and Zapp also operated the Austin Southwestern restaurant Shady Grove on Barton Springs Road from 1992 to 2020. In addition, they opened the Hawaiian and Tex-Mex fusion restaurant Hula Hut in 1993 with business partner Duffy Oyster, but sold their shares in 2009.

Mike Young's departure from the Chuy's board occurred in 2017, while John Zapp resigned from the board in 2018 due to assault family violence charges, as reported by the Austin Business Journal.

Darden Restaurants, with an extensive portfolio of well-known chains, has added Chuy's to its list of culinary offerings. This acquisition further solidifies Darden's presence in the industry, as it already oversees renowned brands such as Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, the Capital Grille, Seasons 52, Eddie's V's, and Bahama Breeze.

With its acquisition of Chuy's, Darden Restaurants continues to demonstrate its commitment to providing diverse dining experiences for customers across the country. Tex-Mex enthusiasts can now look forward to enjoying the flavors of Chuy's alongside the existing culinary delights offered by Darden's impressive lineup of national chains.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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