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How Chili's became a Gen Z hangout spot

Server interacting with customer
Chili's Bar & Grill is gaining popularity among young diners.

Brinker International

  • Chili's is hitting it off with young people.
  • Its social media strategy and value deals have aided its growth in recent quarters, an analyst says.
  • Offers like the 3 For Me deal and Triple Dipper have gone viral online.

Chili's is capturing the attention, tastebuds, and money of young customers.

The casual dining chain has become a hit with Gen Z, and Chili's says it's due, in part, to a push to attract a younger generation on social media.

"Given how heavily younger audiences consume social media, standing out on their feeds means being one of the first to jump on current trends," Jack Hailey, the 25-year-old social media manager for Chili's, said.

Chili's CMO George Felix credits Hailey as the mind behind the restaurant's popular X account. Hailey said marketing execs had given the social media team the freedom to take risks online and maintain a "cheeky, quick, and confident" presence.

Hoping we run into our hometown ex at Chili’s tn

β€” Chili's Grill & Bar (@Chilis) December 23, 2024

The other attraction: deals. While snappy posts might attract Gen Zers to Chili's, Hailey said its food deals resonate with his generation, who "grew up ordering from value menus."

Restaurants and customers have been struggling recently as inflation soars. Many food joints have taken a hit to sales, leading them to lean into special offers to lure people back. Chili's, for example, has started offering an appetizer sampler called the Triple Dipper for under $20.

Restaurants like McDonald's and Wendy's unveiled new offers aimed at drawing customers in last year. But many people are expecting more than just a low price, said R.J. Hottovy, the head of analytical research at the location-data provider Placer.ai, who follows the restaurant industry.

"Value was certainly important, but it had to be value with either menu innovation or something else" such as a sit-down dining experience, he said.

TikTok and other social media have helped Chili's, Hottovy said.

"You have your marketing department, but then you also have thousands of potential marketers in terms of influencers and TikTokers that can really help to change the image of a brand overnight," he said.

Many Gen Zers have reciprocated Chili's social media manager Hailey's energy with their own Chili's-themed videos on TikTok. Creators have garnered millions of views for taste-testing the Triple Dipper, which includes three portions of menu items, like fried mozzarella, chicken tenders, egg rolls, and more for under $20. They can pair it with a margarita for less than $10.

Chili's 3 For Me deal, which includes a main dish, an appetizer, and a drink for $10.99, has also offered an affordable eat-in option, Hottovy said. "I could pay a [fast-food] price, or I could pay or get effectively an even cheaper deal at Chili's and get a nice sit-down meal," he said.

Chili's parent company, Brinker International, reported a 7.4% increase in same-store sales at Chili's in 2024; sales jumped 14% on the same basis in the first quarter of fiscal 2025.

In April, Chili's added a burger to the entrΓ©e options for 3 For Me. In May, visits to the restaurant chain jumped nearly 20% year-over-year and grew by similar percentages through the end of 2024, according to data from Placer.ai.

The deal was successful enough that some of Chili's rivals followed suit, Hottovy said. In November, Applebee's started offering a $9.99 deal with a choice between a chicken sandwich and a bacon cheeseburger plus fries and a beverage. Red Robin offered a burger plus a bottomless side for $9.99 for a few days in September for National Cheeseburger Day.

But "sometimes, you need to have a margarita and Triple Dipper in sweatpants with your friends," Hailey said.

Do you work at Chili's or another restaurant and have a story idea to share? Reach out to these reporters at [email protected] and [email protected].

Read the original article on Business Insider

These affordable Chili's menu options aren't going away anytime soon, its CMO says

Chili's Grill and Bar
Chili's is a casual dining restaurant that offers meals at a range of prices.

Brinker International

  • Value meals at Chili's have boosted the restaurant chain's sales lately.
  • Chili's chief marketing officer says the deals aren't leaving the menu anytime soon.
  • Competitors like McDonald's and Wendy's also offer value meals amid inflation challenges.

Appetizers and value meals are bringing customers to their local Chili's Grill & Bar in droves β€” and they're not leaving the menu anytime soon.

Deals like the Triple Dipper and the 3 for Me combo, both of which allow customers to get sit-down meals for under $20, have helped Chili's parent company, Brinker International, beat quarterly expectations recently. Same-store sales grew nearly 15% at Chili's during the company's latest quarter, which ended in September.

Those affordable deals are standing parts of the restaurant's menu, not temporary offers, George Felix, chief marketing officer at Chili's, said.

While some restaurant chains are "scrambling to throw a low-priced offer out there and try and compete," the 3 for Me deal "is something we believe in," Felix told Business Insider.

3 for Me offers diners a starter, an entrΓ©e, and a drink for as little as $10.99. Chili's has offered the combo for about two years, and it added a smash burger as an entrΓ©e option in April β€” a move the company said took "aim at fast food" at the time.

Other restaurant chains have ramped up deals this year to attract customers, including many whose budgets have been stretched by inflation, back to their dining rooms. McDonald's, for instance, is planning to launch a new value menu in 2025 after extending a limited-time $5 meal this year. Burger King and Wendy's have also offered their own value meals.

Meanwhile, Red Lobster discontinued its $20 endless shrimp deal, which was meant to be a permanent menu item, and ultimately blamed the promotion for an $11 million loss in Q3 2023.

For Chili's, offering food options that range from less than $11 to over $30 allows diners to choose what sort of experience they have, Felix said.

"We believe value is not about the lowest price point," Felix said. "We believe value is what you get for what you pay."

The Triple Dipper is an appetizer sampler that's been having a viral moment on social media recently.

Many Chili's customers who come in for such deals return and order higher-priced items, such as a margarita, which can cost as much β€” or more β€” than some of Chili's value meals, Felix said.

"You bring them in with the Triple Dipper, but then they come back again and it's the Don Julio margarita β€” they treat themselves," Felix told BI. (That margarita cost $12 when ordered for pickup in New York on Tuesday.)

It shows that even diners looking for good deals will splurge, CEO Kevin Hochman said on Chili's October earnings call. "The price-quality equation is critical for this guest," Hochman said.

Are you a Chili's customer or worker with a story idea to share? Reach out to these reporters at [email protected] and [email protected]

Read the original article on Business Insider

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