America is obsessed with Chili’s
New York
CNN
—
People apparently can't get enough of the Big Smasher burger, $6 margaritas and Triple Dipper combination platters at Chili's.
Brinker International, Chili's parent company, reported a 14% in jump in same-store sales and 6.5% increase in traffic as the chain continues to perform strongly with promotions that target its fast food rivals and menu items that are going viral on TikTok.
Rising prices of fast food sparked an advertising campaign for Chili's promoting its $10.99 Big Smasher, a rival to McDonald's Big Mac, that "continues to win with guests" and is a "significant" traffic driver, Brinker CEO Kevin Hochman said on the company's earnings call on Wednesday.
Brinker (EAT) shares soared 9% in midday trading and are up a whopping 150% for the year.
Chili's launched the $10.99 Big Smasher meal deal in April, describing it as having "twice the beef of a Big Mac and flavors fast food lovers will recognize." The meal also includes unlimited refills of a non-alcoholic drink, bottomless chips with salsa and french fries.
The deal has been so successful that it has been extended again will continue through next year as "consumers seek out value coming off their holiday spend," he said, noting that the customers are telling employees that the "burger looks just like the ad."
Another success story for Chili's has been its Triple Dipper platter, which lets eaters choose three appetizers and sauces priced at less than $20. The meal deal is now 11% of Chili's business, with sales soaring 70% over the last year.
The Triple Dipper is "very relevant with younger guests and how they prefer to eat with more variety, customization and experiential flavors through our wide variety of dips," Hochman said. The Triple Dipper is a staple on TikTok, with customers filming their combinations and raving about it. Chili's $6 monthly margaritas are also luring people in, particularly its "Witches Brew" for October, which has become "one of the best-selling promotional margaritas ever," he said. A new $10 Don Julio-based margarita is also attracting higher-end consumers.
Chili's focus on affordability and virality "shows just how broad the appeal of the chain is," according to a new report from Placer.ai, a firm tracks foot traffic. "By delivering high-quality meals at affordable prices, Chili's has solidified its place as an everyman's chain, offering value comparable to that of quick-service restaurants."
Chili's success is a stark contrast to some of its rivals, like TGI Fridays. That chain abruptly closed 50 locations within the past week across the United States as a reported bankruptcy looms. Meanwhile, McDonald's was seeing its fortunes recover because of the $5 meal deal, but its momentum was stunted because of an E. coli outbreak.
