Category - Fast food
How Chili's Is Experiencing Massive Growth Without Raising Prices
We're currently in a restaurant industry climate in which fast food and fast casual chains are competing with value meals to combat customer fatigue over prices that have been steadily on the rise. And yet, all things considered, Chili's just reported yet another successful fiscal quarter amid the struggling sales of its competitors, all while keeping menu costs reasonable.
According to CNN, Chili’s reported its third-straight quarter of double-digit growth this month, with sales at restaurants that have been open for at least a year skyrocketing by an eye-popping 31 percent in the last quarter. The reported earnings likewise drove the stock of the chain's parent company Brinker International’s (EAT) up 16 percent on Wednesday.
On an earnings call this week, the growth was attributed not to Chili’s raising prices, but a 20 percent increase in foot traffic over the last quarter. One of the major reasons for the chain's growing popularity are its massively popular $16 Triple Dipper combo, which blew up on TikTok last year with over 150 million posts dedicated to meal. And its Big Smasher Burger, which launched in April as part of Chili’s $10.99 "3 For Me" meal deal, has already become a fan favorite among customers.
The viral successes are luring in younger customers who may have never visited a Chili's before, having associated the brand with their parent's generation.
Analysts were reportedly over the moon during the earnings call, with the company being congratulated a total of 11 times. One analyst gushed the turnaround was the industry's "best one of all time," while another praised CEO Kevin Hochman by saying that he was "going to write a great book on this some day."
For his part, Hochman remained optimistic about the growth. "Our sales have increased and they’re staying at those levels and that momentum has continued," he told investors on the call.