How Chili's brought back the heat by reviving '90s abundance

If Chili's baby back ribs jingle from the '90s still lives rent-free in your head, we've got good news: the Chili's you remember is back, baby.

As Applebee's and other fast-casual competitors struggle, Chili's has staged a fiery comeback by leaning into retro vibes, celebrating indulgence, and — shockingly — listening to employees and customers, per Fast Company.

Despite customer budgets stretched further than a mozzarella stick cheese pull, the Tex-Mex chain defies odds with what's been described as “the best turnaround story of all time in restaurants.”

Stoking the flames of nostalgia

Chili's began dishing burgers and eponymous chili in Texas in 1975, eventually bringing fun, casual dining to malls across America with head-turning sizzling fajitas, frosty margs, and racks of ribs.

Despite decades of growth, the catchiest of jingles, and pop-culture cameos, Chili's lost heat following the Great Recession. Later pummeled by the pandemic, Chili's lost customers and began lowering prices and investing in ghost kitchens.

Then, in 2022, CEO Kevin Hochman brought back the sizzle by returning to the restaurant's retro roots of middle-class indulgence, focusing on marketing and operations.

Hochman streamlined Chili's menu, improving quality and value:

• Eliminated ~50 menu items (including chili!)
• Bigger burgers, crispier chicken and fries
• 50% more ribs per order
• $6 "Margarita of the Month" deal
• $10.99 "3 for Me" deal to rival fast-food chains

Following a viral video featuring the Triple Dipper combo — a mix-and-match of appetizers like mozzarella sticks and wings — Chili's saw a surge in Gen Z customers:

• Triple Dippers accounted for 6%-7% of sales in 2022; now it's 16%
• 12m pounds of mozzarella consumed in 2022; 65m pounds annually today

The chain continues to court younger crowds via social media.

Hochman also streamlined operations:

• Asked employees for suggestions — credits teams with 80%-90% of changes
• Invested $100m on repairs and maintenance
• Increased staff by 30%-40% per store
• Found clever ways to get food out faster

The results speak for themselves:

• Same-store sales are up 50% over the last three years.
• Revenue increased by $1B last year to reach $5.34B.
• 20% traffic increase in 2024.

A retro redesign will also revive a cheerful mix of color and texture to replace the drab industrial look.

Even that iconic jingle received a revamp.

Though we'll take the original any day.