Buy a Franchise
How Chili Shack is building a fast-casual Mexican franchise around Colorado-style green chile, pairing a focused menu with early momentum as it expands into new markets.
Chili Shack has officially earned a place on 1851 Franchise’s 2026 Fastest Growing Emerging Franchises list — a recognition that highlights brands shaping the future of franchising through innovation, momentum and strong demand. As interest from franchisees continues to climb, Chili Shack is entering a pivotal phase of expansion.
Chili Shack was founded by Abraham Olivas, who grew up in the kitchen with his parents and drew inspiration from his father, Ramon, a chef for more than 20 years. Olivas opened the first Chili Shack in Lakewood, Colorado, in 2020, using profits from a landscaping business to bring a family-rooted, green chile-forward take on Mexican-American comfort food to the Denver market. The brand moved into franchising in October 2025, when it launched a national franchise opportunity.
Chili Shack’s lane is clear: Mexican-American favorites built around signature green chile — the kind that can go on burritos, tacos, quesadillas, enchilada plates and even Southwest-style burgers. The green chile is the through line, and it’s what people tend to talk about after the first visit. Around that, the menu stays straightforward — plates, handhelds and breakfast options that can be built up or kept simple — and the pricing is set up to compete with other fast-casual picks without forcing guests into a premium check.
Chili Shack spent 2025 building its base in Colorado, then made its first real push for wider growth in October. That’s when it launched franchising and began pursuing both single- and multi-unit deals in Colorado and in Arizona, California, Florida, Nevada and New Mexico. That same month, the brand made its first major move out of state, opening in downtown Las Vegas and establishing a foothold beyond the Denver metro area. The company has talked publicly about its goal of reaching as many as 100 locations over the next several years, but it has not publicly shared a confirmed count of franchise agreements sold in 2025.
Chili Shack is early enough in its franchise life cycle that the best territory opportunities are still on the table, but it is not starting from scratch. The concept has been proven across multiple corporate locations in the Denver area, and the Las Vegas opening gave the brand an early test of portability outside its home market. For operators who like fast casual with a defined point of view, the green chile hook creates differentiation that is easier to market locally than another generic Mexican menu.
The next phase is a franchising-led expansion aimed at building density beyond Colorado through a mix of single- and multi-unit development, starting with the Western and Sun Belt markets the brand has already named. The longer-range target is to scale toward up to 100 locations over the coming years, using the Denver base and the new Las Vegas presence as launch points for broader regional growth.
Chili Shack is still in the early innings, but it has a clear point of differentiation and a footprint that is starting to stretch beyond its home base. With franchising now in motion, a proven core market in Colorado and targeted expansion plans across the West and Sun Belt, the brand is entering 2026 with momentum and plenty of white space for the right operators.
Stay tuned throughout the rest of the month for 1851 Franchise's full Fastest Growing Emerging Franchises series to explore the other innovative brands making waves in the industry.
Sign up for the 1851 Franchise newsletter to get our biggest stories before everyone else
By signing up, you agree to our user agreement (including class action waiver and arbitration provisions), and acknowledge our privacy policy.
