Here’s why Americans are going back to Chili’s – MASHAHER

Chili’s efforts to win back American consumers are working.

Same-store sales, a key metric for the restaurant industry, jumped 14.8% in its fiscal fourth quarter, a significant increase as many chains struggle to bring in diners. 

“Our marketing team has done a great job of getting back into what we call the zeitgeist or being relevant again,” Kevin Hochman, CEO of Chili’s parent Brinker International, told CNBC.

A viral social media presence and a push toward value-oriented advertising have propelled sales growth in fiscal 2024.

“They’re finding a beautiful blend of profitable sales because their food costs are not any worse than 2019 levels. And at the same time, they’re portraying a good bit of value to the consumer,” said David Palmer, senior managing director at Evercore ISI.

The brand grew rapidly in the early 2000s, but in the decade that followed the Great Recession, Chili’s U.S. locations declined and sales growth flattened.

Hochman stepped into the role of CEO of Brinker in June 2022. Under his guidance, the casual dining chain has focused on advertising, improving the chain’s physical locations as well as the experience for both patrons and staff.

“We’ve just seen such a turnaround… from the support we get from our bosses to the technology, the culinary innovations, all of those things. It made Chili’s fun again,” said Joe Wilson, managing partner of a Chili’s in East Rutherford, New Jersey.

Watch the video to learn more about how Chili’s made a comeback.