All NewsNovember 5, 2025

Key Chili’s rival has closed hundreds of restaurants

  • Chili’s has been posting double-digit growth.
  • Much of the restaurant industry has struggled as consumers tighten spending.
  • A one-time key rival has shrunk in size, closing hundreds of restaurants.

Chili’s has found some magic.

While rival restaurants, and really much of the restaurant industry, has struggled, the chain made famous by its baby back ribs (and the song that goes with them) keeps putting up strong sales numbers.

The casual sit-down dining chain, which is owned by Brinkers International, continues to show that it has figured out a winning formula.

“Company comparable restaurant sales increased 21.3%, including 23.7% for Chili’s. Chili’s sales growth this quarter was driven primarily by continued increases in traffic, supported by menu innovation and advertising that highlights our industry-leading value and encourages guest trial,” the company shared in its fourth-quarter earnings press release.

That’s something CEO Kevin Hochman celebrated in his remarks.

“Chili’s delivered another strong quarter with sales +24% driven by traffic of +16%. We now have delivered a Q4 2-year sales growth of +39% and 3-year of +45%. With that sustained momentum, along with a strong pipeline of initiatives, we are confident in our ability to grow sales and traffic throughout Fiscal 2026. Chili’s is officially back, baby back,” he said.

While Chili’s has thrived, one of its closest rivals, Ruby Tuesday, has been steadily shrinking as it closes more restaurants every year.

Ruby Tuesday keeps closing restaurants

Chili’s and Ruby Tuesday have fairly similar menus. But only Chili’s has been doubling down on value, while making those efforts very clear to both current and lapsed customers.

“Chili’s has invested heavily in promoting its 3 for Me value menu, which offers customers an appetizer, entree, and a nonalcoholic beverage starting at $10.99. It stepped up that effort further this week with a new burger, the Big Smasher, that is designed to compete with McDonald’s Big Mac. It also launched a new slate of TV ads that compare Chili’s value proposition to fast food,” Restaurant Business shared.

Communicating value has helped Chili’s pass rival Applebee’s in sales.

“A combination of value-based marketing, social media buzz, and improved restaurant operations helped push Chili’s to its strongest sales performance in well over a decade,” Technomic’s Top 500 noted, Nation’s Restaurant News reported.

More Restaurants 

Ruby Tuesday does not advertise nearly as much as Chili’s and keeps its ads digital, for the most part.

“Ruby Tuesday is part of NRD Capital Management. They spent under $100 million on advertising in digital and national TV in the last year. They invest in premium ad units and advertised on under 50 different Media Properties in the last year across multiple Media formats. Ruby Tuesday last advertised a new product in October, 2024,” according to data from Media Radar.

Ruby Tuesday has been in steady decline for years.

Timeline: Ruby Tuesday’s steady decline

  • August 2016: Ruby Tuesday Inc. announced it would close about 95 underperforming company‑owned restaurants (15 % of its chain) by September. Source: Nation’s Restaurant News
  • May 2020: Reports indicated Ruby Tuesday had quietly shuttered over 150 locations since January of that year amid the pandemic. Source: Business Insider
  • October 7, 2020: The company filed for Chapter 11 bankruptcy and announced it would permanently close 185 restaurants that had been shut during the pandemic, leaving about 236 operating locations. Source: PacerMonitor
  • February 24, 2021 : Ruby Tuesday emerged from bankruptcy with about 209 restaurants remaining in operation.
  • January 2025: A specific location at Meriden Mall (Connecticut) was confirmed permanently closed, leaving only two Ruby Tuesday locations in Connecticut. Source: CT Insider
  • November 4, 2025: The location in Presque Isle, Maine, was permanently closed, marking another closure in the chain’s continuing downsizing. Source: bangordailynews.com

Ruby Tuesday keeps closing restaurants

Timeline of Ruby Tuesday locations over the years:

  • 1985: 35 restaurants.
  • Early 1990s: Rapid expansion from mall‑based to free-standing locations.
  • 2004: Around 700 restaurants (company‑owned and franchised).
  • 2009 (peak): About 945 locations.
  • 2011: 736 locations (658 company‑owned, 29 domestic franchise, 49 international franchise) in 43 U.S. states and 13 foreign countries.
  • 2020 (pre‑bankruptcy): Announced permanent closure of 185 pandemic‑shuttered restaurants.
  • Feb 2021: The chain is down to 209 locations after emerging from bankruptcy.
  • Oct 2025: About 204 locations remaining in 29 states. Source: scrapehero.com