Family favorite restaurant chain booming thanks to cracking deals… as industry struggles

Daily Mail​

20 hours ago

It's been a terrible year for restaurants. But one major chain is bucking the industry's sour trend.
Chili's, the Dallas-based Tex-Mex brand famous for baby back ribs and frozen margaritas, just posted a 24 percent jump in sales — serving millions more customers than last year.
That's on top of a big increase in 2023, meaning the chain's sales have soared 39 percent over the past two years. Chili's has now logged five straight quarters of growth.
It is a rare bright spot in an industry where many chains report diners are eating out less and cooking at home to save money.
Chili's says it's attracting shoppers through its doors by focusing on young restaurant-goers and keeping prices low.
The 1,200-store chain says its $10.99 three-plate value is one of its biggest attractions.
It also pointed to a $14.39 burger and fries meal that targets ultra-low-cost establishments like Burger King and McDonald's.
'Chili's has been on fire lately and has been significantly boosting traffic to its restaurants,' Neil Saunders, head of retail at GlobalData, told DailyMail.com.
'There are a whole host of reasons for the success including improved menus and product quality, strong social media activity, and winning over younger diners.'
Chili's is also helped by the fact it is good value for money, so it's an affordable indulgence for many Americans who are still feeling pinched by inflation, he said.
Hochman, who took over the top role in 2022, simplified the Chili's menu and upgraded its french fry and chicken tender — or chicken 'crisper' — recipes.
Brinker International spent more than $400 million on the new menu, plus adding more servers and upgrading outdated restaurants.
Now, the menu focuses on four core offerings: burgers, chicken crispers, fajitas and margaritas.
Instead of upping prices, the chain, which has over 1,000 locations across the US, offered deals including $6 margaritas and a $10.99 'Big Smasher' burger which it claims has 'twice the beef of a Big Mac.'
At the same time, it still offers pricier options including steaks and ribs, for customers who are willing to spend a bit more.
On TikTok, the company's channel features videos with well-followed influencers doing up-to-date trends. The company has over 180,000 followers.
The famous rib-chain reported a stunning 24 percent rise in sales compared to last year
The company thinks that its quality cooking is the secret recipe to its success.
'It's clear we have a winning product with our new ribs, and our intent now is to use them to drive traffic,' Chili's CEO, Kevin Hochman, told investors on Wednesday.
'Those who believe our success was driven solely from a cheese pull and social media are just not close enough to our story.'
Other industry titans said their sales aren't cooking with gas.
Consumer sentiment has remained consistently low this year, as inflation-weary shoppers continue to rein in unnecessary spending.
And that has crunched several bottom lines.
Burger King, Wingstop, Cava, Sweetgreen, Chipotle, and Shake Shack have all reported significant declines in quarterly sales or misses compared to Wall Street's expectations.
They all remain profitable - but their lower-than-expected sales show a major change in the way Americans spend cash.
Meanwhile, several iconic brands have plunged into bankruptcy as the higher cost of food and the lower traffic count create a financial double-whammy.
TGI Fridays, Hooters, Red Lobster, Bertucci's, On The Border, and Buca di Beppo all declared Chapter 11 after financial struggles.