THE CEO of Chili’s has revealed why diners flock to the chain despite it “not being the cheapest thing.”
Since taking over the role just three years ago, Kevin Hochman’s new strategy has transformed the restaurant chain.
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In conversation with The Wall Street Journal the businessman revealed why Chili’s is so successful.
Under Hochman’s new leadership the popular chain has gone from strength to strength with the business being up by over 50 per cent from three years ago.
The CEO and President of Brinker International attributes this to many factors, from slimming down the menu to holding listening sessions with area managers to hear their ideas on how to improve the company.
Hochman explained that the menu has been streamlined by 25 per cent in the last two years.
He said: “It allows us to make the food better.”
On pricing, he went on to explain that it is not always about the lowest price, but rather, what you get for that price.
The chain has employed a barbell strategy, which sees its menu offer both affordable and premium versions of items.
As well as this, the company has upgraded its ingredients with Mr Hochman noting changes to the pickles and fries.
New additions have also been added to the menu, with The Big Smasher becoming an instant hit with customers.
The CEO also highlighted that Triple Dipper sales have increased by 70 per cent between 2023 and 2024.
Beyond changes to the menu, Mr Hochman also acknowledged Chili’s social media marketing strategy, which has helped to draw in customers.
In summary, he said: “The main reason why I think our business is doing a lot better today than it was three years ago is one again the fundamentals of casual dining.
“The food is a lot better, the service is a lot better, and it is a fun, friendly, atmosphere.”
He also acknowledged that Chili’s isn’t “the cheapest” dining option, but its offering of great food, service and atmosphere draws in crowds.
Casual dining is emerging from one of its toughest stretches in decades, according to the The Wall Street Journal.
In 2024, the sector saw more bankruptcies than any other year.
However, while many chains suffered, the upside has been that the market has become less competitive, giving the survivors an opportunity for growth.
Another casual dining chain that is experiencing growth in the wake of this string of bankruptcies is Cava.
The Sun reported earlier this year that the business would be opening 60 new locations.
Cava, a fast-casual chain known for its Mediterranean-inspired menu, opened 58 new locations in 2024.
Now, it plans to keep expanding in 2025.
The company expects to outdo last year’s expansion by opening more than 60 new restaurants this year.
The chain has a long-term goal of reaching 1,000 locations by 2032.
However, some chains are still struggling to draw in customers.
TGI Fridays, Red Lobster and Hooters are among those to have recently fallen into bankruptcy.
The US Sun reported that TGI Fridays only has a handful of spots remaining in the US following its Chapter 11 filing.
Only 85 remain after the chain filed for bankruptcy in November 2024.
Red Lobster has made similarly ambitious moves to claw its way back, as reported by The US Sun in March.
Out of the three, Hooters is the chain that had to do the most soul searching in order to get back on track.
Not only has the company ditched bikini nights now, as covered by The US Sun, but it is also trying to reinvent its brand from the ground up.
The company is trying to get back to its roots after filing for bankruptcy.
Fast food meal deals
Here are some of the current value meals offered by popular fast food joints.
- Chalupa Supreme
- Beefy Five-Layer Burrito
- Double Stacked Taco
- Chips and nacho cheese sauce
- Medium drink
- McDouble or McChicken sandwich
- Four-piece Chicken McNuggets
- Small fries
- Small soft drink
- Junior Bacon Cheeseburger or Crispy Chicken Sandwich
- Four-piece chicken nuggets
- Junior fries
- Small soft drink
- Whopper Junior, Chicken Junior, or Bacon Cheeseburger
- Fries
- Four-piece chicken nuggets