Chili’s, the 49-year-old casual dining chain, has made a stunning comeback and is now America’s hottest restaurant chain. The chain, which was once struggling to compete with flashier and more modern restaurants, has turned things around by focusing on improving its food, streamlining operations, and renovating its restaurants.
Under the leadership of CEO Kevin Hochman, Chili’s has upgraded its menu, offering faster food-like prices and catching fire on TikTok with customers posting videos of its gooey mozzarella sticks. The chain’s sales at restaurants open for at least one year surged 14.1% last quarter and 14.8% in the prior quarter.
Chili’s has also simplified its menu, trimming down options to four primary areas: burgers, chicken crispers, fajitas, and margaritas. The chain removed more than 50 items from its menu, which was previously too complex and bogging down cooks. The simplified menu has helped to increase efficiency in the kitchen and make food more “craveable.”
One of the biggest menu wins for Chili’s was a change to its Chicken Crispers, which it began offering in five and six-count portions to encourage customers to trade up to bigger, more expensive options. The chain also removed corn on the cob as a side and added more dipping sauce options.
Chili’s has also had success with its “Triple Dipper” platter, which lets customers choose from three appetizers, including mozzarella sticks, southwestern egg rolls, and chicken wings, for under $20. The deal has gone viral on social media, with customers posting videos of their reviews of the food.
The chain’s marketing efforts have also been effective, with its $6 margaritas and a new $10.99 “Big Smasher” burger helping to draw in customers. Chili’s is also targeting customers with more discretionary income, offering pricier options like margaritas with high-end tequila and steaks and ribs.
Despite the success, some analysts are skeptical about whether Chili’s can sustain its growth, particularly as some of the novelty fades and competitors try to copy its strategy. Applebee’s recently launched a similar deal and took aim at Chili’s on social media, while McDonald’s is adapting its menu to compete.
However, Chili’s CEO Hochman is confident that the chain can continue to thrive, saying that it has been working hard to improve its menu, operations, and customer service for years. “It’s very, very hard to replace that all in a short period of time,” he said. “It’s going to take them several years to catch up.”
