Chili’s

Interested in selling your Chili's NNN property or Chili's lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Chili’s NNN property for sale or Chili’s ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Chili’s NNN property or the inclusion of a Chili’s ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Chili’s properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of January 2023, Chili’s has over 1,700 restaurants in 26 countries and territories. Of these, over 1,200 are located in the United States and Canada.

Revenue and income

In 2022, Chili’s total revenue was $4.2 billion. Net income was $171 million.

Future plans

Chili’s plans to continue expanding its global footprint. In 2023, the company plans to open over 100 new restaurants worldwide. Chili’s also invests in new technologies like online ordering and mobile payments.

Corporate vs. franchise

About 85% of Chili’s restaurants are franchised. The remaining 15% are corporate-owned. Franchisees typically pay a franchise fee of $25,000 to $50,000 and a royalty fee of 5% of gross sales.

Additional information Chili’s Properties

Chili’s was founded in 1975 in Dallas, Texas.
The company’s name refers to the first restaurant being located in a chili parlor.
Chili’s is a Tex-Mex cuisine-focused casual dining restaurant chain.
The company’s most popular menu items include the Baby Back Ribs, Chicken Fajitas, and Quesadillas.
Chili’s is a subsidiary of Brinker International, Inc., a restaurant company that owns the On the Border Mexican Grill & Cantina and Maggiano’s Little Italy restaurant chains.

Chili’s History

Chili’s was founded in 1975 in Dallas, Texas. The company’s name refers to the first restaurant being located in a chili parlor. Specializing in Tex-Mex cuisine, Chili’s is a casual dining restaurant chain. The company’s most popular menu items include the Baby Back Ribs, Chicken Fajitas, and Quesadillas. Chili’s is a subsidiary of Brinker International, Inc., a restaurant company that owns the On the Border Mexican Grill & Cantina and Maggiano’s Little Italy restaurant chains.

Why Invest in Ground Lease and NNN Lease of Chili’s?

Investing in Chili’s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Chili’s NNN Property Investment: Stable income

Chili’s NNN property investment is a fantastic opportunity for a stable income. Chili’s, a well-established restaurant chain, boasts a strong track record of profitability. The company’s strategically located restaurants in critical markets ensure consistent demand for their offerings.

2) Chili’s NNN Property Investment: Established tenant

Consider the benefits of Chili’s NNN property investment, backed by an established tenant. As a significant player in the casual dining industry, Chili’s leases its restaurants to franchisees. This approach significantly reduces the risk of vacancy or lease default, providing a reliable tenant for your property.

3) Chili’s NNN Property Investment: Low management responsibility

Opting for a Chili’s NNN property investment means minimal management obligations. Chili’s takes charge of its restaurant operations, lessening the franchisee’s management responsibilities. This setup offers you a hassle-free investment experience.

4) Chili’s NNN Property Investment: Favorable lease terms

Explore the appealing aspects of a Chili’s NNN property investment, including favorable lease terms. Chili’s leases are typically long-term and feature built-in rent escalations. This structure ensures predictable income and the potential for rental growth over time.

5) Chili’s NNN Property Investment: Real estate value

Discover the real estate value of a Chili’s NNN property investment. The widely recognized and respected Chili’s brand has the power to attract customers and enhance sales, contributing to the overall value of your investment.

Pros and Cons of Chili’s Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for franchisees.
4. Long-term franchise terms provide stability and potential income growth.
5. Brand recognition attracts customers and boosts sales.

Cons:

1. High franchise fee.
2. Franchisees are subject to Chili’s operational guidelines.
3. Competition from other casual dining chains.
4. Economic and market risks inherent in restaurant investments.

Thorough due diligence and consideration of location, franchise terms, brand strength, and investment strategy are essential. Seek guidance from restaurant industry professionals and financial advisors to align with your goals and risk tolerance.