Chili's Bets Big On Frozen Margaritas With Patrón Tequila

Forbes

30-06-2025

Chili's new frozen margaritas.
Chili's is shaking things up—literally. After a few quieter years, the casual dining chain is back in the spotlight, reclaiming its place as a margarita powerhouse. In 2024, Chili's sold more than 25 million margaritas—more than any other restaurant brand in the U.S.—and now it's raising the bar with a bold new move: premium frozen margaritas made with Patrón.
The new frozen lineup officially debuted last week across all 1,100 Chili's locations, marking a major investment in both equipment and ingredients.
'We realized that over half of our guests actually prefer frozen margaritas,' said George Felix, Chief Marketing Officer of Chili's.. 'But when we looked at our offerings, we knew they weren't good enough. We're the margarita leader—we needed to have the best frozen margarita in the industry.'
That realization sparked a six-to-nine-month innovation sprint that touched nearly every part of the business. From installing best-in-class frozen drink machines to partnering with Patrón for a premium tequila base, Chili's is making a serious play for frozen cocktail credibility.
A Barbell Strategy with a Twist
Chili's margarita program is built on what Felix calls a 'barbell strategy.' On one end: the wildly popular $6 Margarita of the Month, which rotates flavors and taps into seasonal trends. On the other: a growing premium section featuring pours made with Casamigos, Don Julio, and Patrón—priced between $13 and $15, depending on location.
The new frozen margarita platform bridges both ends of that spectrum. The base—a smooth, consistent Patrón frozen margarita—starts at $10. Guests can add a flavor swirl for $1 or opt for signature builds like the Flamingo Freeze (with Tito's and prickly pear) or the Arctic Drift (with Malibu and a beachy blue hue) for $12.
'We wanted to create something that not only tastes great but looks great,' Felix said. 'People drink with their eyes. These drinks pop off the menu.'
Riding the Tequila Wave
Chili's frozen margarita push comes at a time when tequila is booming. According to the Distilled Spirits Council of the United States (DISCUS), there has been a 302% increase in volume of tequila sold in the United States since 2003, and the fastest growth has been seen in the high-end and super-premium segments.
Margaritas remain the most popular cocktail in the country, and Chili's is positioning itself as the go-to destination for both value and quality.
In addition to Patrón, Chili's margarita program features a wide range of premium tequilas including El Jimador, Lunazul, and Teremana, giving guests options that span both price point and flavor profile.
Innovation, the Chili's Way
The process behind the new frozen lineup is emblematic of Chili's broader innovation strategy. When Felix joined the brand three years ago, he helped define the 'core four' menu pillars: burgers, chicken crispers, fajitas, and margaritas. (The Triple Dipper has since joined the club, making it the 'five to drive.')
From there, Chili's built a cross-functional innovation engine that includes marketing, culinary, operations, supply chain, and finance. That team identified frozen margaritas as a white space—and got to work.
'We did a lot of research in Dallas, which is kind of a frozen margarita capital,' Felix said. 'We looked at what makes a great frozen marg, what equipment we needed, and what flavors were trending.'
The result is a platform that's both scalable and flexible. Bartenders shake and swirl in additional ingredients to create layered, Instagram-worthy drinks—bringing a touch of craft cocktail flair to the casual dining space.
Tiffani Thiessen partnered with Chili's to launch the Radical 'Rita.
Margarita of the Month: A Cult Favorite
While the new frozen lineup is the headline, Chili's Margarita of the Month program remains a fan favorite. The drinks are colorful, seasonal, and often come with playful garnishes and pop culture tie-ins.
Earlier this year, Chili's partnered with actress Tiffani Thiessen on the Radical 'Rita, a vibrant purple cocktail made with Lunazul Blanco Tequila, Monin Dragonfruit, house-made sour, and a float of blue curaçao. It came with one of four collectible 90s-inspired swizzle sticks—a nostalgic nod that resonated with fans.
Last July, Chili's celebrated Shark Week with the Berry Sharkbite Margarita. The drink combined Lunazul Blanco Tequila, Malibu Coconut Rum, Monin Blue Raspberry, Monin Blackberry, and house-made sour, and is topped with a playful gummy shark.
'We try to stay ahead by planning in chunks of three,' Felix said. 'We look at trending flavors, seasonal cues, and anything fun we can add to the drink. It's meant to be a little surprise and delight moment.'
A Comeback with Buzz
Chili's isn't just selling more margaritas—it's staging a full-blown comeback. In 2024, the brand saw a 15% jump in systemwide sales, reaching $4.57 billion, and overtook Applebee's to become the third-largest full-service restaurant chain in the U.S., behind only Texas Roadhouse and Olive Garden, according to Nation's Restaurant News.
That's no small feat in a year when many casual dining chains struggled to grow. Chili's success has been credited to a mix of value-driven marketing, viral social media campaigns, and menu innovation—including the same frozen margarita platform now rolling out nationwide.
'We don't take ourselves too seriously,' Felix said. 'But we take our food and drinks very seriously.'
With the launch of its premium frozen margaritas, Chili's is proving that fun and quality don't have to be mutually exclusive. No, these drinks won't land the chain on the World's 50 Best Bars list—but that's not the point. In a world where $25 cocktails are becoming the norm, a $10 Patrón frozen margarita that's consistent, colorful, and crowd-pleasing might just be the best deal in town.