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Today β€” 12 January 2025Main stream

How 'cheeky' Chili's has hit it off with younger customers

12 January 2025 at 02:32
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

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