Chili’s re-ups its relevance with a wave of nostalgia

Chili’s Grill & Bar turned 50 this year. But as a new generation of diners is learning, it’s still got it. Thanks to a series of well-timed marketing efforts—and at least one viral hit appetizer—diners are flocking to the restaurants, which just posted a same-store sales increase of more than 30 percent in its last fiscal quarter. Traffic is up more than 20 percent.

Kevin Hochman, CEO of Chili’s parent Brinker International, credits some of this success to operational adjustments: better kitchen technology, better cook training, and a recent dishwasher-listening tour in which the often invisible, but absolutely vital, employees who clean the chain’s dishes were asked what they needed to make their jobs easier. 

“Marketing is driving guests in,” Hochman told analysts and investors on Tuesday’s earnings call. “Operations is bringing guests back.” 

Chili’s had some misses on the road to modernization. Hochman assumed the top role at Brinker in 2022. Shortly after, he fired a fleet of rolling robotic servers deployed in 60 locations to help human staff deliver food and bus tables. Less than a year later, Chili’s closed its online-only delivery brand It’s Just Wings, which tapped into the fleeting ghost kitchen craze during the pandemic. Turns out diners are responding to comfort and nostalgia—not modern bells and whistles—at the decades-old brand. 

Here’s more of what’s working, according to Hochman. 

The food 

Six months ago, the Chili’s Triple Dipper appetizer went viral on TikTok, boosting sales of the pick-three combo. The appetizer now makes up 12% of sales. Chili’s also introduced a new burger to compete with fast-food brands that have been forced to raise prices over time, and has spent time coaching its cooks on how to make properly smashed, seasoned, and consistent burgers. 

Later this year, the chain plans to introduce a revamped version of its once-popular ribs, which now make up only 3% of sales. Hochman also teased a new queso in order to “reinvent” Chili’s nachos. 

The drinks 

Margaritas landed on the menu at Chili’s more than 30 years ago. This year, Chili’s made a 15-minute Lifetime “movie” titled I’ll Be Home for National Margarita Day, which aired in February. The short film combined two reliable sources of comfort—a cheesy Lifetime movie and a night out at Chili’s—according to Chili’s chief marketing officer George Felix. But mostly, Hochman said during Tuesday’s call, the move was meant to drive sales and awareness of the cocktail that has been a Chili’s staple since 1994. (Its newest margarita campaign features 1990s “it girl” Tiffani Thiessen promoting a ’90s-themed, limited-time Radical Rita that changes colors when it’s stirred.) 

The vibes

In April, Chili’s opened its Scranton Branch, a new location outside of Scranton, Pennsylvania, the famous home of The Office, the decades-old hit comedy that’s reemerged as a streaming favorite. It’s decked out with décor from a 2005 Chili’s-themed episode, including a special booth made for social media sharing. And it features a nostalgic menu item, the Awesome Blossom, a deep-fried onion that was dropped from the menu in 2008. Fans are reacting to the one-off location: Hochman said the store’s opening generated over 9 billion media impressions. 

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