Chili’s Is Popular Again: A Menu with Simple but Powerful Lessons!

Written by Eric Rittenhouse

This article is part of a series that explores successful business models that are thriving by returning to their foundational principles. Recently, Chili’s has revamped its menu and remodeled its restaurants to keep guest interest alive. So, what’s behind Chili’s resurgence, and what lessons can businesses learn from its strategy? Let’s dive in.?

As a result of their refresh, traffic at Chili’s rose almost 20% in the three months ended Dec. 25, indicating a trend that appears to go beyond just a temporary promotional spike. In contrast, traffic across casual dining restaurants has declined over the past few years, dropping by 3.8% in 2024, according to market research firm Black Box Intelligence. Comparable restaurant sales at Chili's increased by over 31% in the latest three-month period compared to the previous year. This comes after a notable decline in popularity, with guest visits dropping by about 30% over two decades starting in 2002.?

How Did They Achieve This??

Chili's has become a social media sensation, with items like the Triple Dipper being featured on TikTok and racking up millions of views as users showcase their experiences with Chili’s version of mozzarella sticks—a rectangular block of fried cheese. However, this is not the only factor in Chili's resurgence. The company has spent the past two years focused on revitalizing its image and has revamped its menu by cutting unprofitable items and selectively adding new options. This approach has become more rigorous, with Chili's reducing low-selling menu items by approximately 25% over the last two years.?

Additionally, Chili's intends to upgrade its restaurants with new paint, artwork, and furniture. Plans are also underway to introduce bar areas with lower ceilings that enhance the dining experience.?

"It's not luck," said Chief Executive Mika Ware. "We introduced a lot of new people to Chili’s, and they are coming back more frequently."???

This steady increase in traffic leads analysts to believe that diners will continue visiting Chili's, even as other restaurant struggle to stay relevant. While the competition, such as Applebee’s, have begun offering lower-priced meals (such as a $9.99 deal), there has not yet been a significant impact on Chili's traffic.?

What Is the Secret Sauce and How Does This Apply to You??

Sometimes, the most effective strategy is to identify what works best for you by returning to your strengths and understanding your consumers. In this case, Chili's has succeeded by streamlining its menu options and focusing on revenue-driving products that appeal to both new and existing customers. This strategy has enhanced the user experience, which Chili’s customers have highlighted and amplified through social media.??

This serves as a valuable lesson for all of us. If you’d like to further explore building a business strategy that stands the test of time, BSM Partners’ team of over 30 professionals, including PhDs, veterinarians, nutritionists, food scientists, engineers, business psychologists, and consumer branding and marketing experts, is here to help. With a combined 400+ years of technical expertise, BSM Partners supports the business needs of hundreds of global brands, and stands ready to help you capture more customers, more market share, and drive lasting success for your brand.??

About the Author?

Eric Rittenhouse works at BSM Partners as Business Development Manager. His areas of expertise include business development, sales and trade marketing while helping brand companies uncover and execute on opportunities to strategically dominate their niche in the consumer product space. He has completed the Blue Ocean Practical Introduction certificate by the Blue Ocean Academy and is Action Selling Master Certified by Action Selling and The Sales Board.?

This article was originally published on BSM Partners' website here.