Technomic’s Top 500 places Chili’s third among full-service brands behind Texas Roadhouse and Olive Garden

Chili’s Grill & Bar, a division of Brinker International Inc., caught lightning in a bottle in 2024.

“Impressive sales growth of 15% for Chili’s Grill & Bar helped the brand overtake longtime rival Applebee’s, cementing itself as the third-largest full-service player behind Texas Roadhouse and Olive Garden,” Technomic said.

“A combination of value-based marketing, social media buzz, and improved restaurant operations helped push Chili’s to its strongest sales performance in well over a decade,” the data agency’s Top 500 noted.

While its number of U.S. units slipped in the Technomic rankings, a dip of 1.7% to 1,209 in 2024 from 1,230 in 2023, systemwide sales rose 15% to $4.571 billion. Average unit volumes were up to $3.7 million from $3.2 million in 2023.

Kevin Hochman, Brinker CEO, said in a January earnings call: “Chili’s turnaround has taken hold, and it is sustainable. Our growth continues to be well balanced, driven by the introduction of a new generation to the Chili’s brand and by existing guests coming more often.”

Hochman said the addition of the smash burger to the 3 for Me platform and viral melted mozzarella sticks as part of the Triple Dipper campaign on TikTok were partially to credit.

“The investments we have been making over the last few years are working,” Hochman said. “Marketing is doing a great job of bringing guests in and putting Chili’s back in culture again. Operation simplification, investments in labor, and facility improvements are working to get guests to return. In short, Chili’s is broadly relevant again and delivering a guest experience that has restored its leadership position in casual dining.”

The TikTok social media excitement had a side benefit: younger guests.

“The campaign is bringing in a younger guest, it’s driving a higher check average, and guests who purchase a Triple Dipper are coming back more frequently than those who don’t,” Hochman said. “New guests, higher ticket, and more frequency, I’d call that a Triple Dipper win for the business.”

Contact Ron Ruggless at Ronald.Ruggless@Informa.com

Follow him on X/Twitter: @RonRuggless

Source https://www.nrn.com/top-500-restaurants/chili-s-turnaround-leads-to-sales-growth-as-brand-overtakes-applebee-s

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