Six months ago, LinkedIn user Lauren Nicholas noticed that something was going on with the casual dining restaurant, Chili’s.
“Chili’s is having a moment,” she wrote, posting screenshots of viral TikToks and noting that “brand love” seemed to be at a “fever pitch.” She also said, “Gen Z is obsessed with the Triple Dipper.” (For example, one video of a mozzarella stick “cheese pull” from the platter has more than 16 million views.)
It looks like Nicholas was definitely right. In an earnings call on Wednesday, Chili’s parent company Brinker revealed that sales at restaurants open for at least a year increased by 31% last quarter—and double-digit sales growth has been steady for three straight quarters.
@edwards.kaylee THE CHEESE PULL ?? #chilis #trippledipper #yummy #foodtok #relatable #fyppppp #getmefamous @Chili’s Grill & Bar ♬ Big Back – The Original Parody – thecincomedy
“The investments we have been making over the last three years are working,” said Brinker’s President and CEO Kevin Hochman on the call with analysts. “Marketing is doing a great job of bringing guests in and putting Chili’s back in the culture again. Operations simplification investments in labor and facility improvements are working to get guests to return.”
The company said increased foot traffic—about 20% last quarter—helped fuel the growth. That, and some fancy new ovens.
“We’ve been testing Turbo Chefs and restaurants and slowly expanding them for the past three years with very positive feedback from the operators,” Hochman said. “They cook the food much faster and much more evenly. They put out less heat, making the kitchen more comfortable for our team members. And they create superior-tasting products like crispier quesadillas and ribs with a delicious crust.”
On the call, one analyst said the company’s turnaround was “the best one of all time,” per CNN.
Nation’s Restaurant News reports that Chili’s also cut its menu down by 13 items and eliminated a dozen pantry-related SKUs. It also improved the quality of its chicken breasts and began making guacamole fresh, in-house.
Hochman told CNBC that Brinker is planning to redesign some older locations, around “200 of our 1200 restaurant estate that…need some love” as the company tries to become a “third place to come together.”
“We’re always going to be there with that $6 margarita,” Hochman told the outlet.
