Chili's Boosts Sales and Challenges McDonald's with New Menu and Tech Upgrades
Chili's same-store sales rose 6% in the fourth quarter, extending a 21-quarter growth streak as the chain uses social media, upgraded ordering tablets and fast-food-style menu items to take on McDonald’s.
Brinker International announced that Chili's same-store sales climbed 6% in the latest quarter, extending a run of 21 consecutive quarters of growth, according to CEO Kevin Hochman. The resurgence stems from a combination of a cheeky social-media strategy that resonates with Gen Z, the rollout of tablet-based ordering systems, and a menu that directly challenges fast-food rivals, notably McDonald’s. New items such as the Spicy Big Crispy chicken sandwich and various Triple Dipper combos are priced to offer perceived value against the Golden Arches, while McDonald’s reported only 0.8% comparable sales growth amid rollout issues.
An on-site review of a Chili's in Alexandria, Virginia, observed a largely empty dining room that filled as the evening progressed, highlighted the tablet’s gaming and loyalty features, and noted quick service. The reviewer found the chicken sandwich larger and tastier than McDonald’s equivalent, though the overall meal cost was higher, totaling just over $77. The experience suggests Chili's is positioning itself as a hybrid between casual dining and fast food, leveraging technology and menu innovation to capture a broader customer base.
Why it matters
Chili's growth shows casual-dining chains can regain market share by blending tech, social media and fast-food pricing.
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