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Home Business & Finance

Chili's is cool again thanks to Gen Z customers todayheadline

January 31, 2025
in Business & Finance
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Known for its American and Tex-Mex fusion cuisine, Chili’s Grill & Bar is a restaurant based in Dallas. It has served millions of families across the U.S. for over 49 years and has a global presence in 27 other countries. 

Chili’s is owned by the leading casual dining restaurant company Brinker International. 

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The Triple Dipper is one of Chili’s most popular menu items. It’s an appetizer combo that allows customers to choose three items from a selection of appetizers, including burger sliders, wings, chicken tenders, mozzarella sticks, and egg rolls. Depending on the location, this menu item costs less than $20 and can be shared with multiple people or enjoyed on your own if you are extra hungry. 

Related: Popular fast-food chain launches new liquor brand menu item

Although this filling appetizer has been on Chili’s menu for years, it suddenly went viral all over TikTok, flooding users’ feeds with thousands of short-form videos reviewing the now-social media famous menu item. 

Chili’s new-found fame made Gen Zers crave its menu items more than ever, enticing them to go to their nearest restaurant location, some even making a special hours-long trip just to try the Triple Dipper for the first time or retry it after years of putting it on the back burner.

Chili’s Grill & Bar, restaurant entrance.

Jeff Greenberg/Getty Images

Chili’s successful turnaround plan focused on innovation and cultural relevancy

Although Chili’s was one of the lucky few to continue operations during the peak of the Covid-19 pandemic after temporarily closing all locations, its business still suffered a huge blow, reporting negative comparable sales of over 32% in the fourth quarter of fiscal 2020.

Over the last three years after the dust settled post-pandemic, Brinker began making multiple investments to return Chili’s to profitable numbers and make it relevant in today’s culture once again.

Related: McDonald’s unveils new partnership with nostalgic childhood franchise

In April 2024, Chili’s launched its “Triple Dipper” social media campaign, partnering with social media influencers to promote its Triple Dipper. The goal was to attract the younger generations and appeal to a broader audience.

Promoting innovation and keeping up with today’s generation paid off, causing the campaign to deliver exceptional results. The Triple Dipper now represents 14% of total sales during the quarter, making it an important driver for the business.

“The campaign is bringing in a younger guest, is driving a higher check average and guests who purchased a triple dipper are coming back more frequently than those who don’t,” said Brinker International CEO Kevin Hochman.

Chili’s’ simplicity strategy for maintaining sustainable growth

Not only has Brinker  (EAT)  invested in Chili’s social media marketing to accelerate growth, but the company has also focused on cutting down its menu while maintaining a diverse item mix and affordable pricing.

“This year to date, we’ve been able to remove 13 menu items, 12 pantry skews and several prep sets and we’ve reinvested time in doing fewer things a whole lot better,” said Hochman. 

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The menu cutdown has successfully increased efficiency in the kitchen, reducing food preparation times. This allows the company to keep up with its organic traffic growth while delivering good-quality food and service.

In fiscal 2024, Chili’s comparable sales increased by over 31% compared to the same time last year, reporting the biggest growth out of all other sister brands. This was driven by new and returning guests coming more frequently despite a more competitive promotional environment, which brought a nearly 20% increase in traffic generated by advertising investments and operational improvements.

Related: Veteran fund manager issues dire S&P 500 warning for 2025

Tags: Chili039scoolcustomersGentodayheadline
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