How Chili’s Won When America Raged About Fast-Food Prices - WSJ


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Chili's Marketing Strategy

Chili's CEO, Kevin Hochman, leveraged public discontent over high fast-food costs to promote his chain. He directly compared Chili's offerings to McDonald's, a strategy that contrasts previous marketing approaches.

Competitive Pricing and Value

The core of Chili's strategy is emphasizing value. They claim customers can obtain comparable burgers to a Big Mac, but with added benefits such as unlimited chips and soda, for a similar price. The offer also includes a $6 margarita option.

Unexpected Comparison

The comparison to McDonald's is unusual; historically, casual dining chains have not marketed themselves as direct competitors to fast-food establishments.

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When social-media feeds lit up with complaints about how pricey fast-food meals had become (“By the time you buy a meal for yourself and someone else, you’ve spent well over $20,” one woman said in a TikTok last year.), Kevin Hochman saw an opportunity in the outrage. 

The chief executive of the company that owns casual-dining chain Chili’s decided it was time to touch a third rail of restaurant marketing: He compared Chili’s to McDonalds, a surprising tactic since casual-dining chains in the past didn’t consider themselves rivals to fast food. Chili’s diners, the company pitches, get similar burgers to a Big Mac but served at a table with unlimited chips and soda for the same price as a combo meal. And if they are in the mood, a margarita for $6 too.

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