Limit Free Food Giveaways
Chili's Grill & Bar's new boss isn't hesitant to adopt intervention-style modifications to boost sales.
Kevin Hochman joined the chain in June. Hochman outlined in a recent earnings call his multipart plan to generate more sales and boost profitability with a few operational strategy pivots.
To the dismay of regular customers, the restaurant will stop offering free food through its rewards programme.
My Chili's Rewards members have enjoyed complimentary chips and salsa or a free non-alcoholic drink with every visit.
Customers have also gotten free WiFi, birthday desserts, and tailored perks including complimentary appetisers, kid's meals, and delivery.
37% of the company's checks are submitted with a discount due to these generous offerings.
Hochman said the corporation will "avoid frequent and substantial discounting" to boost profits. Chili's has struggled to attract customers this year, so the rewards programme will focus on that.
Hochman said on the earnings conference, "We're rebooting My Chili's Rewards."
"We may still give away certain products, but we'll focus on shortening the time between visits for regular customers."
Chili's will focus more on value meal offerings like $9 lunch specials and the 3 for Me deal to improve volume, a tactic Red Robin has used successfully.
Chili's bars will be remodelled as part of the chain's Raise the Bar effort. New drink and bar food menus, a daily happy hour, and NFL Sunday Ticket will debut in 2022.
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