This award-winning homemade chili is loaded with crispy bacon, lean ground beef, kidney beans, and black beans in a rich, smoky tomato base. It's hearty and mild enough for the whole family, makes a big batch for game day or cook-offs, and tastes even better as leftovers.
Cook bacon according to your favorite method. I prefer to bake mine on a wire rack on top of a sheet pan in the oven at 375ºF for 15 minutes. If you prefer a different method, use that. However you cook the bacon, reserve 2 tablespoons of bacon grease for the next step. After the bacon has cooled, chop it coarsely and reserve ¼ cup of the chopped bacon to use as a garnish.
Heat a large dutch oven over medium-high heat. Add the 2 tablespoons of bacon grease to the pot then add the chopped onion. Cook until translucent and slightly browned, about 10 minutes.
Add garlic to the pot and cook for 30 seconds or until fragrant.
Add the ground beef to the pot, breaking it up with a wooden spoon or spatula. Once the beef is mostly browned, add the brown sugar, chili powder, paprika, cumin, onion powder, black pepper, and salt and mix well.
Bring chili to a boil and cook for 5 minutes, stirring continuously.
Reduce heat and simmer for 30 minutes or longer, uncovered, stirring occasionally. This step isn't absolutely necessary, but the flavor of the chili will be much nicer if you do it.
Top with sour cream, shredded cheddar cheese, diced avocado, and a sprinkle of chopped bacon, and serve hot.
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Notes
Keep leftover chili in the fridge in an airtight container or freezer bag for up to 5 days.Freeze leftover bacon chili in an airtight container or freezer bag for up to 3 months. Let frozen chili thaw in the refrigerator overnight.Warm on the stovetop or in the microwave, adding a splash of beef broth or water if it is too thick.Feel free to make ahead, even as much as 2-3 days. The flavor gets even better as it sits.