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Capital Grille Shuts Skokie Location Amid Darden's Major Brand Overhaul — Melanin News | Melanin
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Capital Grille Shuts Skokie Location Amid Darden's Major Brand OverhaulCulture

Capital Grille Shuts Skokie Location Amid Darden's Major Brand Overhaul

1w ago

A popular fine dining spot in Chicago's northern suburbs is set to close its doors permanently. The Capital Grille at Westfield Old Orchard Mall in Skokie, Illinois, will cease operations on May 31, a mere three years after its grand opening.

This move by The Capital Grille's parent company, Darden Restaurants, is part of a significant strategic restructuring. The company is undertaking a broad portfolio adjustment that most notably includes the complete elimination of its Bahama Breeze brand across the United States. The Skokie Capital Grille, known for its dry-aged steaks, fresh seafood, and extensive wine list, occupied a 9,000-square-foot space on the mall’s southeast corner, previously home to McCormick & Schmick's Seafood & Steaks, since March 2023.

Darden Restaurants
Darden Restaurants Source

Darden Restaurants confirmed the decision to close the Skokie location, emphasizing it was the result of a "careful and thoughtful business evaluation." A spokesperson for Darden reiterated that the closure "in no way does this reflect on the quality of our team members' work, and we're doing everything we can to help every team member find a new job." Leah Santiago, Communications Manager for the chain, echoed this sentiment, adding that the decision was difficult due to its impact on both team members and guests. Efforts are reportedly underway to transition affected employees to other Darden restaurants in the Skokie area or within the corporate portfolio. Currently, four other Capital Grille locations in Illinois—Lombard, Rosemont, Schaumburg, and Streeterville—will remain open.

The broader strategic shift for Darden was announced on February 3, 2026. This plan involves shedding all 28 Bahama Breeze locations, a brand Darden had previously indicated was no longer a strategic priority. Of these, 14 Bahama Breeze restaurants are slated for permanent closure by April 5, 2026. The remaining 14 sites are earmarked for conversion into other Darden-owned restaurant concepts over the subsequent 12 to 18 months, continuing operations until temporary closures are needed for the renovation process. Darden has not yet disclosed which specific brands will take over these locations but believes they are "great sites that will benefit several of the brands in its portfolio."

These recent actions follow earlier closures by Darden. In May 2025, the company abruptly shut down 15 Bahama Breeze locations across various states, including Florida, Illinois, Massachusetts, Michigan, Nevada, New Jersey, New York, and Tennessee, citing underperformance. At the same time, two Seasons 52 restaurants in Kansas City, Missouri, and Sacramento, California, also closed their doors as part of the company's continuous evaluation of restaurant performance. These strategic decisions have been overseen by Darden's CEO, Rick Cardenas, who began his 35-year career with the company as a busser and was elected CEO in December 2021. Cardenas previously held roles as Chief Strategy Officer, Chief Financial Officer, and President and Chief Operating Officer.

Bugaboo Creek Steakhouse
Bugaboo Creek Steakhouse Source

Despite these extensive closures, Darden Restaurants has reported positive financial performance. In its fiscal third quarter, the company saw a 5.9 percent increase in total sales, reaching $3.3 billion. For the full fiscal year 2024, Darden reported total sales of $11.39 billion, an increase from $10.487.8 billion in 2023. The company also noted restaurant-level EBITDA growth of 120 basis points. Darden's portfolio includes other prominent brands such as Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, Seasons 52, and Eddie V's. The company expanded its fine dining segment with the acquisition of Ruth's Chris Steak House in a $715 million deal in May 2023.

These ongoing adjustments underscore Darden's commitment to optimizing its brand portfolio and strategically allocating capital to concepts where it anticipates clearer returns. The company expects that the Bahama Breeze closures and conversions will not significantly impact its overall financial results.

As the Skokie Capital Grille prepares for its final service and Bahama Breeze locations nationwide begin their transition, the moves highlight a calculated effort by Darden Restaurants to streamline its operations and focus on its highest-performing brands in a competitive market.