21-02-2025
Dallas-based Chili's is attracting younger diners
Chili's is one of the hottest restaurants in America.
Why it matters: The Dallas-founded casual dining restaurant is booming at a time when many other major restaurant and fast food chains are struggling.
Chili's reported a 31% increase in sales in the last quarter of 2024, driven by a nearly 20% increase in foot traffic.
Driving the news: The restaurant partnered with Lifetime to release a 15-minute romantic film this week ahead of National Margarita Day.
The sappy Lifetime original is just the latest in the chain's social media marketing strategy.
The big picture: Chili's memes have taken over social media as the company aims marketing at younger generations. The goal is simple: become relevant again.
The restaurant airs commercials during major sporting events and uses social media to highlight its deals, like the 3 for Me entree combo and the Triple Dipper appetizer platter.
Case in point: You might still remember the baby back ribs jingle from the '90s.
What they're saying: The increasing foot traffic shows the restaurant's marketing schemes are working, Brinker International CEO Kevin Hochman told CNBC.
"We don't think this is the end; we think this is just the beginning of the Chili's turnaround," Hochman said.
What they did: In addition to reintroducing Chili's to younger generations, the chain revamped recipes, streamlined operations — like shifting to a single breading option for Chicken Crispers — trimmed menus and updated dining rooms, per CNN.
Zoom in: Chili's is definitely a Dallas restaurant. It first opened on Greenville Avenue in 1975.
Restaurateur Norman Brinker, known for Jack in the Box and Bennigan's, bought Chili's in 1983.
The next year, fajitas were added to the menu. The company claims to have taught Americans how to correctly pronounce the word. By the mid-'90s, Chili's was the No. 1 seller of margaritas.
Under Brinker International, the chain has opened more than 1,200 restaurants nationwide.
Zoom out: Other casual dining chains haven't been as successful. Dallas-based TGI Friday's filed for bankruptcy in November.
And there are no longer Red Lobster locations in North Texas after the final ones closed last year amid the chain's financial struggles.
The bottom line: As dining out becomes more expensive, Chili's increasing sales revenue shows diners are drawn to affordable food and a consistent restaurant experience.
