The original Chuy’s Tex-Mex restaurant. A fixture of Austin’s food scene for over four decades, the now-national chain is being acquired by Darden, the parent company to brands including Olive Garden and Ruth’s Chris Steak House. Credit: Photo by Jana Birchum

For generations of Austinites, Chuy’s is the weird, cool Tex-Mex place with the Elvis shrine down on Barton Springs. The reality is that it’s a chain of 101 restaurants across the country, and now has been acquired for $605 million by Darden Restaurants, Inc.

Chuy’s is actually the second iconic Austin-based restaurant chain acquired by Darden, as the larger firm previously bought Eddie V’s Prime Seafood back in 2008. Chuy’s now becomes part of a portfolio that includes familiar brands including Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, and Bahama Breeze.

Founded in 1982 by Mike Young and John Zapp, the bare-bones Tex-Mex diner became a hit for its big portions, chips served out of the trunk of a car, and a black velvet portrait of Elvis, who rapidly became the original location’s patron saint. The company expanded across Texas, with each location uniquely decorated in an aesthetic dubbed “drunk uncle core“, before opening its first-out-of-state location in Franklin, Tenn., in 2012. Having grown to 36 locations with a value of $75.8 million, the company went public four years later. It also retained a strong local presence, with five locations within city limits including the original Barton Springs location.

Now Darden has agreed to an all-cash purchase of all outstanding shares of Chuy’s Holdings at $37.50 per share, totaling $605 million.

Announcing the purchase, Darden President and CEO Rick Cardenas said, “Chuy’s is a differentiated brand within the full-service dining industry with strong performance and growth potential. Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy. I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”

Steven Hislop, Chairman, CEO and President of Chuy’s, added, “We are excited about the opportunity to join the Darden family and its portfolio of well-respected brands. Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures. Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities.”

This article appears in July 12 • 2024.

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The Chronicle's first Culture Desk editor, Richard has reported on Austin's growing film production and appreciation scene for over a decade. A graduate of the universities of York, Stirling, and UT-Austin, a Rotten Tomatoes certified critic, and eight-time Best of Austin winner, he's currently at work on two books and a play.