How an iconic restaurant chain pulled off 'the best comeback of all time' to become America's favorite
Chili's has pulled off a remarkable comeback, which experts are hailing as the 'best one of all time.'
The 49-year-old casual dining restaurant, which is known for its baby back ribs and Tex Mex menu, has seen a surge in customers in the last year.
As other restaurant chains are filing for bankruptcy and struggling to get people through the door, foot traffic to Chili's increased 20 percent in the last quarter.
Sales at restaurants that have been open for at least a year increased a huge 31 percent last quarter, which was its third consecutive quarter of double-digit growth.
These stunning results drove parent company Brinker International's stock up 16 percent on Wednesday to a record high.
Analysts said the company's turnaround was 'the best one of all time' for the restaurant industry, while another said CEO Kevin Hochman was 'going to write a great book on this some day,' CNN reported.
So how has this once-forgotten chain managed to pull this off?
Chili's updated its menu, and leant heavily into social media, managing to build up a new younger audience.
Chili's has pulled off a remarkable comeback, which experts are hailing as the 'best one of all time'
'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Brinker International spent more than $400 million on the new menu, plus adding more servers and upgrading outdated restaurants.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.
Chili's Triple Dipper' platter has taken social media by storm, with some videos raking in millions of views
The CEO of parent company Brinker International, Kevin Hochman, has been hailed for pulling off a remarkable comeback at Chili's
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.
In an interview with CNN last year, Hochman admitted that Chili's was making the wrong decisions prior to these changes.
'We were very much on a strategy of just trying to be the lowest price out there,' he said.
'That made it very difficult for us to make the needed investments in labor and in the restaurants.'
In the past, Chili's has been accused of having slow service, shabby restaurants and a high staff turnover.
But this comeback is also thanks to viral TikTok videos of customers eating its stringy mozzarella sticks.
In particular, its 'Triple Dipper' platter has taken social media by storm, with some videos from influencers such as Alexis Frost raking in hundreds of thousands of views.
The Triple Dipper deal has inspired thousands of TikTok videos
Instead of upping prices, the chain, which has over 1,000 locations across the US, offered deals including a $10.99 'Big Smasher' burger which it claims has 'twice the beef of a Big Mac'
For less than $20, the Triple Dipper allows customers to choose three appetizers, including mozzarella sticks, burger bites, chicken wings and its signature southwestern egg rolls.
While the platter has been around for decades, Chili's chose to push the menu item in a social media campaign last spring.
The deal went viral, inspiring thousands of TikTok videos, one with more than 16 million views, and bringing in customers who may have once associated the chain with their parents.
'Our team chose Triple Dipper to start the social media campaign because we believe it is consistent with the way the younger generations like to eat,' Hochman told Barron's.
'They like to try lots of different things instead of just one big entrée, and they like to customize.'
Since the campaign, the Triple Dipper's share in Chili's total sales has doubled from 7 percent to 14 percent.
Despite its hot streak, Chili's is facing competition from fast food chains such as McDonald's and Burger King, which are trying to lure in cash-strapped Americans with value meals.
Fellow fast casual chain Applebee's also took aim at Chili's on social media late last year, claiming that its $9.99 'Really Big Meal Deal' is better than the $10.99 equivalent at Chili's.
Hochman, however, told analysts that he is confident the chain's success will not be short-lived.
'Our sales have increased and they're staying at those levels and that momentum has continued,' he said.
