If you talk to operators about their off-premises success, many of them will bring up the importance of curbside pick-up. Some see it as a key to their success. Not Chili’s.
At the end of the first quarter in 2024 the brand jettisoned the practice. It was creating tension among team members, said Kevin Hochman, CEO of Brinkers International, which owns Chili’s, during a call with analysts last August. He also noted that the brand had invested in improving order accuracy and packaging to ensure hot and fresh delivered food.
What those changes helped deliver is three straight quarters of double-digit growth, including a 31 percent jump in same-store sales from October to December. Yowsa. This comes at a time when competitors in the casual-dining space, including Darden, Dine Brands and Bloomin’ Brands, have posted same-store dips or skimpy growth. The most recent Circana traffic share data shows Chili’s as the top casual-dining chain in 2024.
The Chili’s success story wasn’t written overnight. Hochman shared in a recent earnings call that it took seven quarters to turn traffic to positive. The brand adjusted the knobs in a number of areas, including menu, pricing, operations and marketing. It onboarded a new KDS. And it modified its approach to It’s Just Wings, its virtual brand. It still offers that menu. But it simplified its back-of-house operations as the equipment took too much space for an offering that represented just 1 percent of the business. The brand also trimmed 13 menu items and 12 pantry SKUs to reduce prep sets. And it introduced a conveyor belt over called TurboChefs, which takes up less space yet cooks faster. It’s gotten big by going small.
And let’s not overlook the impact of TikTok. While the 50-year-old brand has rarely been considered fashionable, last year it suddenly was. Young customers on the platform started raving about the Triple Dipper appetizer platters, with some demonstrating how far they could pull the cheese in a fried mozzarella stick. And the mozzarella piled up for the brand, with Triple Dipper revenues doubling. Going forward the brand is planning to roll out a Triple Dipper campaign with social media celebrities.
Can Chili’s keep up this hockey-stick growth? Hochman believes so. “Chili’s turnaround is taking hold and is sustainable,” he said. If it does it’s a safe bet execs at Brinkers will toast each other with a $6 margarita.
