Financing

Brinker buys 37 Chili's from franchisee Quality Dining Inc.

The restaurants are in six states in the Great Lakes and Northeast markets. The deal continues Brinker's strategy of operating more of its own stores.
Chili's sign
Photograph: Shutterstock

Chili's parent Brinker International bought 37 restaurants from franchisee Quality Dining Inc.

The locations are in six states—Michigan, Indiana, Ohio, Pennsylvania, New Jersey and Delaware—a Brinker spokesperson said.

The deal closed in October, according to an SEC filing. Terms were not disclosed. 

Indiana-based Quality Dining Inc. had been a Chili's franchisee since the 1990s. It also operates nearly 150 Burger Kings as well as its own Papa Vinos concept. 

The 37 stores are in addition to another 23 that Brinker acquired from franchisee Chesapeake Foods in September. It continues the company's strategy to operate most of its own restaurants.

The deal makes the Chili's system about 91% company-operated in the U.S., with 1,125 corporate stores and 109 franchised locations.

“We're very forward in our belief that corporate ownership is the best way over time to drive returns in this segment,” CFO Joseph Taylor said during the company's investor day in October.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Podcast transcript: Virtual Dining Brands co-founder Robbie Earl

A Deeper Dive: What is the future of digital-only concepts? Earl discusses their work to ensure quality and why focusing on restaurant delivery works.

Financing

In the fast-casual sector, Chipotle laps Panera Bread

The Bottom Line: The two fast-casual restaurant pioneers have diverged over the past five years, as the burrito chain has thrived while Panera hit a wall. Here's why.

Food

How Chick-fil-A's shift on antibiotic-free chicken signals an industry evolution

Chick-fil-A was a No Antibiotics Ever brand, but now its standards are more in line with KFC and others. Will consumers understand the nuanced difference?

Trending

More from our partners