How Chili's CEO Turned Around the Chain: A Step-by-Step Guide to Their Comeback Strategy

Introduction

In the competitive world of casual dining, Chili's has staged a remarkable comeback, celebrating its 50th anniversary while reporting 20 consecutive quarters of growth. The chain now holds the No. 2 spot in U.S. casual dining, trailing only Texas Roadhouse. Behind this resurgence is a clear playbook from CEO Kevin Hochman, who joined in 2022. In interviews, Hochman distilled the secret sauce to two core pillars: marketing and operations. “Marketing brings them in, and ops brings them back,” he said. This guide breaks down the exact steps Chili's used to revive its brand, from viral social media moments to operational tweaks. Whether you're in the restaurant industry or any business seeking a turnaround, these principles offer a proven blueprint.

How Chili's CEO Turned Around the Chain: A Step-by-Step Guide to Their Comeback Strategy — Source: www.fastcompany.com

What You Need

A clear understanding of your brand's strengths and weaknesses
A dedicated marketing team that can create buzz-worthy campaigns
Operations staff empowered to deliver consistent quality and service
A signature product or item that can become a viral sensation
Social media monitoring tools to track trends and engagement
Flexibility to update menu items and portion sizes based on feedback
Willingness to directly challenge competitors in advertising

Step-by-Step Guide

Step 1: Align Marketing and Operations as Complementary Forces

The foundation of Chili's comeback is the symbiotic relationship between marketing and operations. Hochman emphasizes that these two departments must work in lockstep. Marketing’s job is to create excitement and draw customers through the door, while operations ensures the experience lives up to the hype. “We have a saying here: Marketing brings them in, and ops brings them back,” Hochman explained. To implement this, start by establishing regular cross-departmental meetings where marketing previews upcoming campaigns and operations provides feedback on feasibility. Operations should also have clear ownership of cleanliness, food quality, and service speed—the “everyday stuff” that Hochman says makes a brand better over time. This alignment prevents a gap between the promise and the reality, which is a common pitfall in many businesses.

Step 2: Identify and Amplify a Signature Viral Product

Chili's success skyrocketed thanks to the Triple Dipper, a pick-three appetizer combo that accounted for 14% of total sales last year. The chain sold 41 million Triple Dippers in fiscal year 2025. The key was not just having a popular item, but one with visual appeal—especially the deep-fried mozzarella sticks with their impressive cheese pull. To replicate this, audit your menu for items that are photogenic, shareable, and unique. Consider offering a customizable combo that lets customers choose favorites, creating a sense of ownership. Chili's then introduced new flavors to keep the hype alive, such as limited-time options tied to seasons or trends. The lesson: don't just rely on one hit; iterate and expand to maintain momentum.

Step 3: Leverage Social Media Organically

The mozzarella stick cheese pull went viral on social media without paid promotion. Chili's CMO George Felix noted, “Essentially, 100% of that can be attributed to social media.” This was not a coincidence—the chain actively encouraged user-generated content by making the product visually stunning. To follow this step, focus on creating experiences that naturally encourage photos and videos. Encourage staff to invite customers to share their meals online. Monitor trending hashtags and challenges, and be ready to engage with viral moments in real time. Chili's also used social listening to identify which flavors to introduce next, letting customer demand guide product development. This organic approach builds authenticity that paid ads often lack.

Step 4: Upgrade Existing Menu Items and Offer Variety in Portions

Hochman highlighted that improving current menu items was a low-risk, high-impact move. For example, Chili's tripled the amount of bacon in its bacon cheeseburger, making it more indulgent without changing the core recipe. They also introduced different portion sizes to appeal to varied appetites and budgets. This step involves auditing your menu for items that could be enhanced with better ingredients or bigger portions. Test changes in a few locations before rolling out nationwide. Communicate upgrades clearly in marketing—show the “before and after” to build anticipation. Portion variety also allows customers to choose value deals or premium experiences, expanding your target audience. These tweaks often require little capital but can significantly boost perceived value.

Step 5: Directly Challenge Competitors in Advertising

Chili's didn't shy away from comparing itself to rivals. In 2024, they launched the “Big Smasher” burger, promising “twice the beef as a Big Mac.” More recently, they invited customers to compare their crispy chicken sandwich against other contenders. This aggressive but honest comparison strategy works because it gives consumers a clear reason to switch. Hochman explained, “If you go to a competitor and the same burger is a dollar less than ours, but it doesn't look like it did in the ad, it doesn't matter whether it was a dollar less.” To implement, identify a competitor's weakness—such as inconsistent quality or smaller portions—and highlight how your offering is superior. Use side-by-side imagery in ads. Ensure your product actually delivers on the promise, or the backlash could be severe.

Step 6: Maintain Operational Consistency as the “Secret Sauce”

All the marketing in the world fails if the in-restaurant experience disappoints. Hochman stresses the importance of “everyday stuff” like food quality, cleanliness, and quick service. Under his leadership, Chili's reported comparable sales growth of 8.6% in Q2 2026 and 4% in Q3. To achieve this, implement standardized training for all front- and back-of-house staff. Conduct regular unannounced audits to ensure consistency across locations. Empower managers to make real-time decisions to fix issues. Remember that operations is not static; it requires continuous improvement. Chili's success came from executing the basics better than competitors. As Hochman said, “That's kind of been our secret sauce.” Consistency builds trust, turning first-time visitors into regulars.

Tips for Success

Start with a strong internal culture. Before you can sell to customers, your team must believe in the strategy. Chili's leadership instilled a “marketing and ops are one” mindset from the top down.
Don't underestimate the power of visual content. The cheese pull video was unplanned but capitalized on quickly. Always be ready to capture and share organic moments.
Test, measure, and iterate. Chili's introduced new Triple Dipper flavors based on social media trends. Use data to guide menu changes, not just gut feelings.
Keep your promises. If you claim your burger has twice the beef, make sure it does. One bad experience can undo months of marketing.
Focus on the long game. Twenty consecutive quarters of growth didn't happen overnight. Stick with the strategy even when short-term results fluctuate.
Stay competitive but authentic. Direct comparisons can be effective, but only if your product genuinely outperforms. Avoid false claims that could damage credibility.

By following these six steps, any restaurant—or business—can create its own comeback story. As Chili's CEO Kevin Hochman proved, the secret sauce isn't a single ingredient; it's the perfect blend of marketing and operations, executed consistently.

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