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Apr 25, 2025
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A lot of players in casual dining and
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A lot of players in casual dining and
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A lot of players in casual dining and Chili's was one of them. Forgot about
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Chili's was one of them. Forgot about
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Chili's was one of them. Forgot about why do people go out and if we don't
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why do people go out and if we don't
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why do people go out and if we don't deliver on that, why will we expect our
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deliver on that, why will we expect our
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deliver on that, why will we expect our business to grow? The restaurant
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business to grow? The restaurant
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business to grow? The restaurant industry has been struggling. 2024 had
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industry has been struggling. 2024 had
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industry has been struggling. 2024 had the highest number of bankruptcies since
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the highest number of bankruptcies since
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the highest number of bankruptcies since the pandemic. TGI Fridays filed for
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the pandemic. TGI Fridays filed for
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the pandemic. TGI Fridays filed for bankruptcy. Hooters is the latest casual
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bankruptcy. Hooters is the latest casual
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bankruptcy. Hooters is the latest casual restaurant chain to file for chapter 11
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restaurant chain to file for chapter 11
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restaurant chain to file for chapter 11 bankruptcy. It's not a Red Lobster. It
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bankruptcy. It's not a Red Lobster. It
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bankruptcy. It's not a Red Lobster. It has officially filed for bankruptcy. But
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has officially filed for bankruptcy. But
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has officially filed for bankruptcy. But on the flip side, Chelli is thriving.
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on the flip side, Chelli is thriving.
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on the flip side, Chelli is thriving. It's got more customers, more sales,
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It's got more customers, more sales,
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It's got more customers, more sales, more hype. This is so good. Chili's you
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more hype. This is so good. Chili's you
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more hype. This is so good. Chili's you popped off. And this man is the reason
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popped off. And this man is the reason
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popped off. And this man is the reason why. His name is Kevin Hawkman, and he's
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why. His name is Kevin Hawkman, and he's
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why. His name is Kevin Hawkman, and he's the CEO of Chili's. The Wall Street
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the CEO of Chili's. The Wall Street
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the CEO of Chili's. The Wall Street Journal's restaurants reporter Heather
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Journal's restaurants reporter Heather
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Journal's restaurants reporter Heather Haden sat down with him to learn how
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Haden sat down with him to learn how
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Haden sat down with him to learn how he's steering Chili's through the
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he's steering Chili's through the
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he's steering Chili's through the industry's challenges and his strategy
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industry's challenges and his strategy
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industry's challenges and his strategy to keep it the hottest casual dining
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to keep it the hottest casual dining
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to keep it the hottest casual dining chain in the country.
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chain in the country.
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chain in the country. I know the kitchen was a big focus in
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I know the kitchen was a big focus in
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I know the kitchen was a big focus in making it more efficient. What were top
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making it more efficient. What were top
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making it more efficient. What were top changes you made there and what was the
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changes you made there and what was the
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changes you made there and what was the payoff? One of the ideas actually came
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payoff? One of the ideas actually came
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payoff? One of the ideas actually came from our culinary team. We had our
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from our culinary team. We had our
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from our culinary team. We had our executive leadership team having a
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executive leadership team having a
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executive leadership team having a meeting. They served all of us two
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meeting. They served all of us two
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meeting. They served all of us two identical old-timers with cheese. That's
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identical old-timers with cheese. That's
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identical old-timers with cheese. That's our most popular burger. And they had us
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our most popular burger. And they had us
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our most popular burger. And they had us taste each one and then say, "Oh, what
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taste each one and then say, "Oh, what
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taste each one and then say, "Oh, what was the difference?" And one of the
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was the difference?" And one of the
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was the difference?" And one of the executives was like, "Oh, the burger is
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executives was like, "Oh, the burger is
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executives was like, "Oh, the burger is different." Another one was like, "Oh,
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different." Another one was like, "Oh,
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different." Another one was like, "Oh, the cheese is different." Another one's
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the cheese is different." Another one's
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the cheese is different." Another one's like, "Oh, the buns toasted
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like, "Oh, the buns toasted
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like, "Oh, the buns toasted differently." We all got it wrong. The
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differently." We all got it wrong. The
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differently." We all got it wrong. The pickles were different, right? That was
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pickles were different, right? That was
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pickles were different, right? That was the only thing that was different. And
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the only thing that was different. And
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the only thing that was different. And so they bring out the current pickle at
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so they bring out the current pickle at
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so they bring out the current pickle at the time and it was like a five
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the time and it was like a five
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the time and it was like a five gallallon jug and it looked like a
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gallallon jug and it looked like a
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gallallon jug and it looked like a painters jug and they had a special tool
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painters jug and they had a special tool
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painters jug and they had a special tool to pry open the pickles and then about a
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to pry open the pickles and then about a
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to pry open the pickles and then about a minute later you you you liberate the
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minute later you you you liberate the
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minute later you you you liberate the pickles cuz the thing flies off. But
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pickles cuz the thing flies off. But
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pickles cuz the thing flies off. But then all the pickle juice spills over.
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then all the pickle juice spills over.
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then all the pickle juice spills over. So you got to clean up the pickle juice
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So you got to clean up the pickle juice
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So you got to clean up the pickle juice and the dill. And then they said,
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and the dill. And then they said,
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and the dill. And then they said, "Here's the other pickle they didn't
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"Here's the other pickle they didn't
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"Here's the other pickle they didn't know the difference of." And they
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know the difference of." And they
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know the difference of." And they brought a jar out and they opened it up
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brought a jar out and they opened it up
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brought a jar out and they opened it up and they took two pickles out, right?
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and they took two pickles out, right?
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and they took two pickles out, right? They said, "Oh, by the way, this is over
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They said, "Oh, by the way, this is over
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They said, "Oh, by the way, this is over a half a million dollars cheaper than oh
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a half a million dollars cheaper than oh
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a half a million dollars cheaper than oh my goodness than the liberated pickles,
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my goodness than the liberated pickles,
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my goodness than the liberated pickles, right?" And I remember one of the one of
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right?" And I remember one of the one of
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right?" And I remember one of the one of the executives was like, "Well, we
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the executives was like, "Well, we
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the executives was like, "Well, we should test this." It's like, "What is
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should test this." It's like, "What is
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should test this." It's like, "What is there to test? There's 200 years of
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there to test? There's 200 years of
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there to test? There's 200 years of experience in this room and none of us
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experience in this room and none of us
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experience in this room and none of us could pick which pickle it was, right?"
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could pick which pickle it was, right?"
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could pick which pickle it was, right?" Hawkman has also zeroed in on the
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Hawkman has also zeroed in on the
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Hawkman has also zeroed in on the equipment. His team looked for small
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equipment. His team looked for small
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equipment. His team looked for small changes they could make to save cooking
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changes they could make to save cooking
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changes they could make to save cooking time and money. So, for example, on a
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time and money. So, for example, on a
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time and money. So, for example, on a burger and fries sounds simple, right?
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burger and fries sounds simple, right?
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burger and fries sounds simple, right? Lot goes into that. And the fries, what
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Lot goes into that. And the fries, what
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Lot goes into that. And the fries, what we found was one, they weren't as hot as
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we found was one, they weren't as hot as
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we found was one, they weren't as hot as they could be, and two, they weren't
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they could be, and two, they weren't
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they could be, and two, they weren't seasoned properly. And you say, "Well,
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seasoned properly. And you say, "Well,
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seasoned properly. And you say, "Well, why is that?" Well, it's not it's not
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why is that?" Well, it's not it's not
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why is that?" Well, it's not it's not the cook's fault. It's not the
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the cook's fault. It's not the
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the cook's fault. It's not the restaurant team's fault. It was the home
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restaurant team's fault. It was the home
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restaurant team's fault. It was the home office's fault because we gave them two
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office's fault because we gave them two
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office's fault because we gave them two fries to make. So, we had a curly fry
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fries to make. So, we had a curly fry
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fries to make. So, we had a curly fry and a straight fry. So, if you just have
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and a straight fry. So, if you just have
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and a straight fry. So, if you just have one fry, you can make it hotter and
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one fry, you can make it hotter and
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one fry, you can make it hotter and fresher. Um, and then the seasoning
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fresher. Um, and then the seasoning
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fresher. Um, and then the seasoning process was almost impossible. So, after
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process was almost impossible. So, after
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process was almost impossible. So, after the fries are cooked, they're put on
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the fries are cooked, they're put on
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the fries are cooked, they're put on what's called a sable week pan. And then
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what's called a sable week pan. And then
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what's called a sable week pan. And then they're supposed to take the shaker and
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they're supposed to take the shaker and
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they're supposed to take the shaker and do it 30
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do it 30
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do it 30 times. After five, your arm just starts
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times. After five, your arm just starts
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times. After five, your arm just starts getting tired. So, like, nobody's doing
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getting tired. So, like, nobody's doing
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getting tired. So, like, nobody's doing it 30 times. And then we wonder, why
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it 30 times. And then we wonder, why
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it 30 times. And then we wonder, why isn't the fries properly seasoned? So,
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isn't the fries properly seasoned? So,
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isn't the fries properly seasoned? So, we used incredible innovation. We made a
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we used incredible innovation. We made a
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we used incredible innovation. We made a shaker with bigger holes that more
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shaker with bigger holes that more
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shaker with bigger holes that more seasoning came out and now you put them
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seasoning came out and now you put them
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seasoning came out and now you put them in a bowl, you go shake, shake, shake,
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in a bowl, you go shake, shake, shake,
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in a bowl, you go shake, shake, shake, toss, toss, shake, shake, shake. Fries
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toss, toss, shake, shake, shake. Fries
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toss, toss, shake, shake, shake. Fries are properly seasoned and they're hot
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are properly seasoned and they're hot
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are properly seasoned and they're hot and fresh every time. Was there things
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and fresh every time. Was there things
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and fresh every time. Was there things about consumer surveys or what had you
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about consumer surveys or what had you
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about consumer surveys or what had you seen when you first started that said to
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seen when you first started that said to
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seen when you first started that said to you the food's got to be better and this
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you the food's got to be better and this
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you the food's got to be better and this is what I need to do? Well, I mean, you
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is what I need to do? Well, I mean, you
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is what I need to do? Well, I mean, you could talk to guests, but you also talk
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could talk to guests, but you also talk
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could talk to guests, but you also talk to the team members. I mean, the team
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to the team members. I mean, the team
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to the team members. I mean, the team members would tell
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members would tell
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members would tell you that the food the food needed to be
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you that the food the food needed to be
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you that the food the food needed to be better. You know, I do these listening
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better. You know, I do these listening
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better. You know, I do these listening sessions all around the country. I do
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sessions all around the country. I do
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sessions all around the country. I do about 16 a year. I'll have 15 to 20 area
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about 16 a year. I'll have 15 to 20 area
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about 16 a year. I'll have 15 to 20 area managers in a restaurant just like this
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managers in a restaurant just like this
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managers in a restaurant just like this before it opens. We spend two to three
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before it opens. We spend two to three
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before it opens. We spend two to three hours. I open my laptop up. I'm taking,
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hours. I open my laptop up. I'm taking,
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hours. I open my laptop up. I'm taking, you know, notes. And the main question I
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you know, notes. And the main question I
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you know, notes. And the main question I ask them is, "If you were the CEO, what
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ask them is, "If you were the CEO, what
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ask them is, "If you were the CEO, what would you change tomorrow?" It's a very
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would you change tomorrow?" It's a very
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would you change tomorrow?" It's a very provocative question. Sometimes like
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provocative question. Sometimes like
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provocative question. Sometimes like they're a little hesitant. I'll be like,
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they're a little hesitant. I'll be like,
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they're a little hesitant. I'll be like, "Hey, when you're cursing under your
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"Hey, when you're cursing under your
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"Hey, when you're cursing under your breath that the corporate made you do X,
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breath that the corporate made you do X,
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breath that the corporate made you do X, this is your chance. Like I'm the CEO. I
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this is your chance. Like I'm the CEO. I
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this is your chance. Like I'm the CEO. I can make change. Like if you don't tell
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can make change. Like if you don't tell
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can make change. Like if you don't tell me now, you can't complain about it,
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me now, you can't complain about it,
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me now, you can't complain about it, right?" and they get all fired up and
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right?" and they get all fired up and
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right?" and they get all fired up and they give me lots of good ideas. So,
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they give me lots of good ideas. So,
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they give me lots of good ideas. So, you're skinning down the menu. Why is
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you're skinning down the menu. Why is
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you're skinning down the menu. Why is the menu that you have now the right
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the menu that you have now the right
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the menu that you have now the right menu? Huge advantages come out of
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menu? Huge advantages come out of
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menu? Huge advantages come out of slimming down the menu or allows us to
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slimming down the menu or allows us to
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slimming down the menu or allows us to make the food better. So, for example,
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make the food better. So, for example,
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make the food better. So, for example, the chicken crispers, we used to have
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the chicken crispers, we used to have
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the chicken crispers, we used to have two chicken crispers. We had a tempora
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two chicken crispers. We had a tempora
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two chicken crispers. We had a tempora battered crisper called the original
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battered crisper called the original
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battered crisper called the original crisper. It's about 20% of the of the
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crisper. It's about 20% of the of the
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crisper. It's about 20% of the of the chicken crisper business. And then we
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chicken crisper business. And then we
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chicken crisper business. And then we had a conventional extra crispy, we call
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had a conventional extra crispy, we call
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had a conventional extra crispy, we call it a crispy crisper. It's 80% of the
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it a crispy crisper. It's 80% of the
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it a crispy crisper. It's 80% of the business, right? And when you go into
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business, right? And when you go into
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business, right? And when you go into the back of the of the restaurant, the
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the back of the of the restaurant, the
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the back of the of the restaurant, the heart of the house, they have very small
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heart of the house, they have very small
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heart of the house, they have very small little pans with which they can bread
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little pans with which they can bread
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little pans with which they can bread each of those flavors, right? Because
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each of those flavors, right? Because
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each of those flavors, right? Because there's two flavors in this breading
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there's two flavors in this breading
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there's two flavors in this breading station that's about this big. When we
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station that's about this big. When we
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station that's about this big. When we got rid of the 20% variant, we could now
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got rid of the 20% variant, we could now
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got rid of the 20% variant, we could now have one big vat where we can make 24 at
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have one big vat where we can make 24 at
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have one big vat where we can make 24 at a time versus the old way you could make
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a time versus the old way you could make
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a time versus the old way you could make one or two at a time. So sometimes
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one or two at a time. So sometimes
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one or two at a time. So sometimes people say they love variety, and they
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people say they love variety, and they
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people say they love variety, and they do, but variety can sometimes get in the
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do, but variety can sometimes get in the
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do, but variety can sometimes get in the way of making things consistently
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way of making things consistently
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way of making things consistently really, really well. And that's a great
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really, really well. And that's a great
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really, really well. And that's a great example where today we only have one
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example where today we only have one
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example where today we only have one recipe. We sell 66% more sales in
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recipe. We sell 66% more sales in
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recipe. We sell 66% more sales in chicken crispers today than we did 3
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chicken crispers today than we did 3
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chicken crispers today than we did 3 years ago because we're doing it a much
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years ago because we're doing it a much
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years ago because we're doing it a much more consistent manner. It's a better
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more consistent manner. It's a better
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more consistent manner. It's a better product. These types of trims have
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product. These types of trims have
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product. These types of trims have slimmed down the menu by 25% in the last
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slimmed down the menu by 25% in the last
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slimmed down the menu by 25% in the last 2 years. But the chain has also added an
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2 years. But the chain has also added an
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2 years. But the chain has also added an important new item. So the Big Smasher
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important new item. So the Big Smasher
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important new item. So the Big Smasher um which you introduced last year, I
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um which you introduced last year, I
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um which you introduced last year, I know was a really important moment for
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know was a really important moment for
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know was a really important moment for you for the brand um in terms of lifting
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you for the brand um in terms of lifting
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you for the brand um in terms of lifting your sales. talk about developing the
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your sales. talk about developing the
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your sales. talk about developing the Big Smasher and then also marketing wise
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Big Smasher and then also marketing wise
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Big Smasher and then also marketing wise going after fast food. Yeah. So, one of
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going after fast food. Yeah. So, one of
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going after fast food. Yeah. So, one of the things that our team saw a little
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the things that our team saw a little
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the things that our team saw a little longer than a year ago was in social
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longer than a year ago was in social
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longer than a year ago was in social media, people were posting their fast
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media, people were posting their fast
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media, people were posting their fast food receipts and they were complaining
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food receipts and they were complaining
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food receipts and they were complaining about how expensive things were. And so,
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about how expensive things were. And so,
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about how expensive things were. And so, we came up with the idea like, what if
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we came up with the idea like, what if
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we came up with the idea like, what if we made a burger that had familiar taste
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we made a burger that had familiar taste
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we made a burger that had familiar taste profile of a famous fast food burger,
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profile of a famous fast food burger,
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profile of a famous fast food burger, but done in the format of chilies. Makes
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but done in the format of chilies. Makes
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but done in the format of chilies. Makes a quarter pound burger look tiny and
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a quarter pound burger look tiny and
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a quarter pound burger look tiny and well, yeah, tiny. and then go after this
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well, yeah, tiny. and then go after this
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well, yeah, tiny. and then go after this idea that fast food pricing is high,
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idea that fast food pricing is high,
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idea that fast food pricing is high, right? And we did that May of last year
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right? And we did that May of last year
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right? And we did that May of last year and the business business was doing well
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and the business business was doing well
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and the business business was doing well before that. It just took off after
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before that. It just took off after
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before that. It just took off after that. Is it profitable though? I mean,
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that. Is it profitable though? I mean,
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that. Is it profitable though? I mean, that's the question with all these value
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that's the question with all these value
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that's the question with all these value deals that a lot of chains have rolled
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deals that a lot of chains have rolled
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deals that a lot of chains have rolled out. You know, it's sharp price points.
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out. You know, it's sharp price points.
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out. You know, it's sharp price points. They're very appealing to consumers who
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They're very appealing to consumers who
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They're very appealing to consumers who now are really feeling fatigued. Can you
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now are really feeling fatigued. Can you
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now are really feeling fatigued. Can you make money on it? Well, we can and we do
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make money on it? Well, we can and we do
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make money on it? Well, we can and we do and I have shareholders and I owe it to
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and I have shareholders and I owe it to
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and I have shareholders and I owe it to them to continue to make money, right?
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them to continue to make money, right?
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them to continue to make money, right? So, one of these we call is a barbell
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So, one of these we call is a barbell
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So, one of these we call is a barbell strategy. That means that most customers
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strategy. That means that most customers
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strategy. That means that most customers buy an affordable option like Chili's $6
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buy an affordable option like Chili's $6
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buy an affordable option like Chili's $6 base option margarita. But the chain
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base option margarita. But the chain
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base option margarita. But the chain also offers a premium option like a
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also offers a premium option like a
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also offers a premium option like a Presidente Margarita for the few who
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Presidente Margarita for the few who
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Presidente Margarita for the few who want to splurge. As long as we continue
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want to splurge. As long as we continue
6:12
want to splurge. As long as we continue to play on both ends of the barbell,
6:14
to play on both ends of the barbell,
6:14
to play on both ends of the barbell, we're going to be fine cuz it allows us
6:16
we're going to be fine cuz it allows us
6:16
we're going to be fine cuz it allows us to manage the value mix with more
6:17
to manage the value mix with more
6:17
to manage the value mix with more premium mix that we can also make money
6:19
premium mix that we can also make money
6:19
premium mix that we can also make money on. But across the industry, sales
6:21
on. But across the industry, sales
6:21
on. But across the industry, sales haven't risen as much as Chili's and
6:24
haven't risen as much as Chili's and
6:24
haven't risen as much as Chili's and rival chains are noticing. So, your
6:26
rival chains are noticing. So, your
6:26
rival chains are noticing. So, your competitors have definitely noticed your
6:28
competitors have definitely noticed your
6:28
competitors have definitely noticed your success. Applebee's last year came out
6:30
success. Applebee's last year came out
6:30
success. Applebee's last year came out with its $99.99 deal. Applebee's really
6:33
with its $99.99 deal. Applebee's really
6:33
with its $99.99 deal. Applebee's really big meal deal for only $9.99. A little
6:36
big meal deal for only $9.99. A little
6:36
big meal deal for only $9.99. A little cheaper than your, you know, your entry
6:38
cheaper than your, you know, your entry
6:38
cheaper than your, you know, your entry point for three for me. Have you seen
6:40
point for three for me. Have you seen
6:40
point for three for me. Have you seen any impact from competitors stepping up?
6:43
any impact from competitors stepping up?
6:43
any impact from competitors stepping up? So, I have a a monthly meeting with our
6:44
So, I have a a monthly meeting with our
6:44
So, I have a a monthly meeting with our vice president of operations. So, I
6:45
vice president of operations. So, I
6:45
vice president of operations. So, I asked them about a deal that was
6:47
asked them about a deal that was
6:47
asked them about a deal that was undercutting us by about 10% on a
6:49
undercutting us by about 10% on a
6:49
undercutting us by about 10% on a similar um value meal construct. And
6:52
similar um value meal construct. And
6:52
similar um value meal construct. And they all started laughing. I was like,
6:53
they all started laughing. I was like,
6:53
they all started laughing. I was like, "Why are you guys laughing?" and they're
6:54
"Why are you guys laughing?" and they're
6:54
"Why are you guys laughing?" and they're like, "We don't think this is going to
6:55
like, "We don't think this is going to
6:55
like, "We don't think this is going to dent us in the least because it's not
6:56
dent us in the least because it's not
6:56
dent us in the least because it's not just about the lowest price. It's also
6:58
just about the lowest price. It's also
6:58
just about the lowest price. It's also about what you get for that price and we
7:00
about what you get for that price and we
7:00
about what you get for that price and we think that what we have is unbeatable."
7:01
think that what we have is unbeatable."
7:01
think that what we have is unbeatable." And if you look at the results for the
7:03
And if you look at the results for the
7:03
And if you look at the results for the for that quarter when that that new
7:04
for that quarter when that that new
7:04
for that quarter when that that new offer, the competitive offer came out,
7:06
offer, the competitive offer came out,
7:06
offer, the competitive offer came out, we were up 31% in sales, right? And
7:09
we were up 31% in sales, right? And
7:09
we were up 31% in sales, right? And with, you know, plus 20% traffic growth.
7:11
with, you know, plus 20% traffic growth.
7:11
with, you know, plus 20% traffic growth. And that just tells you the guess isn't
7:13
And that just tells you the guess isn't
7:13
And that just tells you the guess isn't just buying the lowest price out there.
7:15
just buying the lowest price out there.
7:15
just buying the lowest price out there. It's going to be very difficult for our
7:16
It's going to be very difficult for our
7:16
It's going to be very difficult for our competitors to catch up because it could
7:18
competitors to catch up because it could
7:18
competitors to catch up because it could take years of what we've been doing and
7:20
take years of what we've been doing and
7:20
take years of what we've been doing and investments that we've been making to
7:21
investments that we've been making to
7:21
investments that we've been making to get to where we are. So, let's talk
7:23
get to where we are. So, let's talk
7:23
get to where we are. So, let's talk about the triple dipper. Um, so that has
7:25
about the triple dipper. Um, so that has
7:25
about the triple dipper. Um, so that has been on your menu for decades. I found
7:27
been on your menu for decades. I found
7:27
been on your menu for decades. I found ads going back to 2012. What have you
7:30
ads going back to 2012. What have you
7:30
ads going back to 2012. What have you done that's changed to make that such a
7:32
done that's changed to make that such a
7:32
done that's changed to make that such a sensation? Is it the food? Is it the
7:35
sensation? Is it the food? Is it the
7:35
sensation? Is it the food? Is it the marketing? Is it both? Well, I think the
7:37
marketing? Is it both? Well, I think the
7:37
marketing? Is it both? Well, I think the first thing is the food is better and
7:38
first thing is the food is better and
7:38
first thing is the food is better and it's made more consistently. Point two
7:40
it's made more consistently. Point two
7:40
it's made more consistently. Point two is they our marketing team did a really
7:42
is they our marketing team did a really
7:42
is they our marketing team did a really focused effort on bringing this into
7:44
focused effort on bringing this into
7:44
focused effort on bringing this into social media.
7:46
social media.
7:46
social media. Triple dippers is very consistent the
7:48
Triple dippers is very consistent the
7:48
Triple dippers is very consistent the way a young person likes to eat. Like to
7:49
way a young person likes to eat. Like to
7:49
way a young person likes to eat. Like to have lots of little things. It's
7:51
have lots of little things. It's
7:51
have lots of little things. It's experiential. You've got cheese pulls,
7:52
experiential. You've got cheese pulls,
7:52
experiential. You've got cheese pulls, you've got um you've got products that
7:55
you've got um you've got products that
7:55
you've got um you've got products that you can dip. And we started marketing on
7:57
you can dip. And we started marketing on
7:57
you can dip. And we started marketing on social media and I think that showed a
7:59
social media and I think that showed a
7:59
social media and I think that showed a young generation of like, wow, this is
8:01
young generation of like, wow, this is
8:01
young generation of like, wow, this is something that would be exciting. And
8:02
something that would be exciting. And
8:02
something that would be exciting. And then when they were came into the
8:03
then when they were came into the
8:03
then when they were came into the restaurant and had a similar experience,
8:05
restaurant and had a similar experience,
8:05
restaurant and had a similar experience, they would start posting about it too,
8:07
they would start posting about it too,
8:07
they would start posting about it too, right? And that thing caught on fire.
8:09
right? And that thing caught on fire.
8:09
right? And that thing caught on fire. From 2023 to 2024, Triple Dipper sales
8:12
From 2023 to 2024, Triple Dipper sales
8:12
From 2023 to 2024, Triple Dipper sales increased 70% according to the company.
8:15
increased 70% according to the company.
8:15
increased 70% according to the company. In the last quarter of 2024, it made up
8:18
In the last quarter of 2024, it made up
8:18
In the last quarter of 2024, it made up 14% of all sales. With social media, how
8:22
14% of all sales. With social media, how
8:22
14% of all sales. With social media, how have you stoked this? Because some of
8:23
have you stoked this? Because some of
8:24
have you stoked this? Because some of it's organic, but then obviously you've
8:25
it's organic, but then obviously you've
8:25
it's organic, but then obviously you've played a role in making this go viral.
8:27
played a role in making this go viral.
8:27
played a role in making this go viral. Is it partnering with influencers? Is it
8:29
Is it partnering with influencers? Is it
8:30
Is it partnering with influencers? Is it being playful? I mean, we don't have
8:32
being playful? I mean, we don't have
8:32
being playful? I mean, we don't have access to any different than other
8:35
access to any different than other
8:35
access to any different than other restaurant brands. To me, the biggest
8:37
restaurant brands. To me, the biggest
8:37
restaurant brands. To me, the biggest difference is the product's really good.
8:39
difference is the product's really good.
8:39
difference is the product's really good. When you see this cheese pool and it
8:41
When you see this cheese pool and it
8:41
When you see this cheese pool and it goes like this and you're like, "Hey, I
8:42
goes like this and you're like, "Hey, I
8:42
goes like this and you're like, "Hey, I want to go try that." And then you come
8:44
want to go try that." And then you come
8:44
want to go try that." And then you come into Chili's and it works just like that
8:47
into Chili's and it works just like that
8:47
into Chili's and it works just like that and you're like, "Wow, like this is what
8:49
and you're like, "Wow, like this is what
8:49
and you're like, "Wow, like this is what I saw on on TV or this is what I saw on
8:51
I saw on on TV or this is what I saw on
8:51
I saw on on TV or this is what I saw on social and then you tell your friends
8:53
social and then you tell your friends
8:53
social and then you tell your friends and it becomes a part of your rotation
8:55
and it becomes a part of your rotation
8:55
and it becomes a part of your rotation because you had such a good experience."
8:56
because you had such a good experience."
8:56
because you had such a good experience." What do you see in the numbers, you
8:58
What do you see in the numbers, you
8:58
What do you see in the numbers, you know, that's showing that people people
8:59
know, that's showing that people people
8:59
know, that's showing that people people are buying off of social media or the
9:01
are buying off of social media or the
9:01
are buying off of social media or the social media strategy is translating
9:03
social media strategy is translating
9:04
social media strategy is translating into sales? Well, you know, our our
9:05
into sales? Well, you know, our our
9:05
into sales? Well, you know, our our business is up about a little over 50%
9:08
business is up about a little over 50%
9:08
business is up about a little over 50% from three years ago. So, some of that's
9:10
from three years ago. So, some of that's
9:10
from three years ago. So, some of that's triple dipper, right? seven or eight
9:12
triple dipper, right? seven or eight
9:12
triple dipper, right? seven or eight percent, but a lot of it's not the
9:13
percent, but a lot of it's not the
9:13
percent, but a lot of it's not the triple dipper, too. So, the main reason
9:15
triple dipper, too. So, the main reason
9:15
triple dipper, too. So, the main reason why I think our business is doing a lot
9:17
why I think our business is doing a lot
9:17
why I think our business is doing a lot better today than it was three years
9:19
better today than it was three years
9:19
better today than it was three years ago, is once again the fundamentals of
9:21
ago, is once again the fundamentals of
9:21
ago, is once again the fundamentals of casual dining, which is the food's
9:22
casual dining, which is the food's
9:22
casual dining, which is the food's better, the service is a lot better, and
9:24
better, the service is a lot better, and
9:24
better, the service is a lot better, and it's in a fun, friendly atmosphere.
9:26
it's in a fun, friendly atmosphere.
9:26
it's in a fun, friendly atmosphere. We've seen when new guests come in, the
9:28
We've seen when new guests come in, the
9:28
We've seen when new guests come in, the time it takes them to come back to the
9:29
time it takes them to come back to the
9:29
time it takes them to come back to the restaurant is compressed. It's
9:31
restaurant is compressed. It's
9:31
restaurant is compressed. It's compressed because they're having a good
9:32
compressed because they're having a good
9:32
compressed because they're having a good experience and they're coming back
9:33
experience and they're coming back
9:33
experience and they're coming back sooner, right? So, um, to me that's the
9:36
sooner, right? So, um, to me that's the
9:36
sooner, right? So, um, to me that's the big that's the big difference is that
9:38
big that's the big difference is that
9:38
big that's the big difference is that we've done a really good job with the
9:39
we've done a really good job with the
9:39
we've done a really good job with the experience in terms of, you know,
9:41
experience in terms of, you know,
9:41
experience in terms of, you know, sustaining what you're doing this summer
9:42
sustaining what you're doing this summer
9:42
sustaining what you're doing this summer would be a year of positive traffic,
9:45
would be a year of positive traffic,
9:45
would be a year of positive traffic, which in this industry is really
9:47
which in this industry is really
9:47
which in this industry is really exceptional. I mean, everyone is hurting
9:48
exceptional. I mean, everyone is hurting
9:48
exceptional. I mean, everyone is hurting for traffic right now. How do you keep
9:50
for traffic right now. How do you keep
9:50
for traffic right now. How do you keep that going? The way we're going to keep
9:51
that going? The way we're going to keep
9:51
that going? The way we're going to keep growing the business is don't get bored
9:53
growing the business is don't get bored
9:53
growing the business is don't get bored of the fundamentals. And fortunately for
9:55
of the fundamentals. And fortunately for
9:55
of the fundamentals. And fortunately for us, because we're delivering a good
9:56
us, because we're delivering a good
9:56
us, because we're delivering a good experience for these new guests that are
9:58
experience for these new guests that are
9:58
experience for these new guests that are coming in, we become a part of that
9:59
coming in, we become a part of that
9:59
coming in, we become a part of that consideration set. Where do you think
10:00
consideration set. Where do you think
10:00
consideration set. Where do you think Chili's will be in a year, in 5 years?
10:03
Chili's will be in a year, in 5 years?
10:03
Chili's will be in a year, in 5 years? Well, I I hope it's a lot bigger. So, we
10:05
Well, I I hope it's a lot bigger. So, we
10:05
Well, I I hope it's a lot bigger. So, we want to have restaurants that are even
10:07
want to have restaurants that are even
10:07
want to have restaurants that are even more productive, uh, better for
10:09
more productive, uh, better for
10:09
more productive, uh, better for economics, you know, better sales. Good
10:12
economics, you know, better sales. Good
10:12
economics, you know, better sales. Good things happen when you grow sales of
10:13
things happen when you grow sales of
10:13
things happen when you grow sales of existing restaurants. Restaurants become
10:15
existing restaurants. Restaurants become
10:15
existing restaurants. Restaurants become a lot easier to run. You able to afford
10:17
a lot easier to run. You able to afford
10:17
a lot easier to run. You able to afford more labor. Food's out fresher and
10:19
more labor. Food's out fresher and
10:19
more labor. Food's out fresher and hotter and more delicious. So, that's
10:21
hotter and more delicious. So, that's
10:21
hotter and more delicious. So, that's number one is we got to continue to grow
10:23
number one is we got to continue to grow
10:23
number one is we got to continue to grow the business through the fundamentals of
10:24
the business through the fundamentals of
10:24
the business through the fundamentals of casual dining. And then number two, I
10:26
casual dining. And then number two, I
10:26
casual dining. And then number two, I think we can start building chilies.
10:27
think we can start building chilies.
10:27
think we can start building chilies. Again, there are parts of this country
10:29
Again, there are parts of this country
10:29
Again, there are parts of this country there are no chilies. So, there's no
10:30
there are no chilies. So, there's no
10:30
there are no chilies. So, there's no chili in Oregon. uh we don't have as
10:32
chili in Oregon. uh we don't have as
10:32
chili in Oregon. uh we don't have as many chilies in California in some
10:34
many chilies in California in some
10:34
many chilies in California in some states that traditionally we thought
10:35
states that traditionally we thought
10:35
states that traditionally we thought would more expensive to be able to
10:37
would more expensive to be able to
10:37
would more expensive to be able to operate in. But now that we're a much
10:38
operate in. But now that we're a much
10:38
operate in. But now that we're a much healthier concept with better for
10:40
healthier concept with better for
10:40
healthier concept with better for economics, we can operate in those
10:41
economics, we can operate in those
10:41
economics, we can operate in those states now. So there's a lot more runway
10:43
states now. So there's a lot more runway
10:43
states now. So there's a lot more runway ahead of us on this brand than there is
10:45
ahead of us on this brand than there is
10:45
ahead of us on this brand than there is behind us. And we're just getting we're
10:47
behind us. And we're just getting we're
10:47
behind us. And we're just getting we're still probably early to midnings of our
10:49
still probably early to midnings of our
10:49
still probably early to midnings of our turnaround. So there's so much more
10:51
turnaround. So there's so much more
10:51
turnaround. So there's so much more runway to grow restaurant volumes as
10:53
runway to grow restaurant volumes as
10:53
runway to grow restaurant volumes as well as build new restaurants.
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