How Chili’s is Bringing Back the Nostalgia Behind Its Success

Chili’s is looking to the past as it plans for the future, reviving many of the features that made the restaurant chain a household name in the 1990s.

Red leather booths are making a comeback, alongside the brand’s colourful tile tables – this time redesigned without the grout that made them difficult to maintain. Diners will also see nostalgic décor, including a framed copy of Chili’s original 1975 menu, complete with prices that, according to the company, are surprisingly close to today’s.

The redesigned look is debuting in Dallas, Texas – the city where Chili’s was founded more than 50 years ago.

Making Chili’s Feel More Like Chili’s

Brinker International CEO and Chili’s President Kevin Hochman says the redesign is about reconnecting with the restaurant’s identity rather than reinventing it.

“Our objective is we want to make Chili’s more Chili’s.”

Beginning next year, the company plans to remodel about 10% of its nearly 1,200 U.S. restaurants annually until the entire estate has been refreshed.

The strategy comes after 20 consecutive quarters of same-store sales growth and sustained double-digit increases in customer traffic.

Banking on Nostalgia

Restaurant redesigns have helped boost traffic at chains such as Denny’s and Burger King, although they can also backfire.

Cracker Barrel, for example, faced backlash last year after customers criticised its modernised look and simplified branding, forcing the company to reverse course.

Hochman believes Chili’s is taking a different approach by embracing the elements customers already love.

“These brands are so big. (Chili’s) is 50 years old, and they don’t get there by accident.”

“It’s because there’s things about them that people grew up with that made them really, really special, whether it was the margaritas or the fajitas or the tile tables.”

A Rare Bright Spot in Casual Dining

While much of the restaurant industry continues to grapple with slowing consumer spending, Chili’s has emerged as one of the strongest performers.

According to Technomic, it is now the second-largest casual dining chain in the United States by revenue, driven by improved food quality and a strong value proposition.

Research from Placer.ai also indicates that Chili’s has been winning customers away from both full-service restaurants and fast-food chains by offering better value.

Hochman, who joined Brinker International in 2022, attributes the turnaround to a simple formula.

“Even our guest check today, (against) casual dining, is under $3 to $4 versus the average.”

“There’s nothing really magical about that.”

Simpler Menu, Better Value

Since taking over, Hochman has streamlined the menu to improve kitchen efficiency and reduce waiting times.

He also eliminated traditional coupons in favour of straightforward value offerings, including the popular “3 for Me” meal, which includes an appetiser, entrée and drink starting at $10.99.

Another standout has been the “Triple Dipper” appetiser, which gained widespread attention on TikTok thanks to its stretchy fried mozzarella cheese.

Refreshing Restaurants After Years of Repairs

Over the past few years, Chili’s has invested hundreds of millions of dollars repairing roofs, replacing windows and upgrading restaurant equipment.

Now the company is turning its attention to aesthetics for the first time in more than two decades.

“We’re shifting from defense of just making sure the buildings feel really good.”

“Now we’re moving to offense, which is ‘how do we start elevating the atmosphere?'”

Classic Features Return

The new restaurant design leans heavily into the chain’s heritage.

New locations will feature Southwestern-inspired exterior tiles, a redesigned bar highlighting Chili’s famous margaritas, and a “Welcome to Chili’s” entrance sign created by the same chalk artist who decorated the original Dallas restaurant.

Although Hochman declined to reveal whether the first four renovated Dallas-area restaurants have recorded higher customer traffic, he said the company sought feedback from Chili’s founder Larry Levine during the redesign process.

He believes returning to the brand’s roots will help attract both loyal customers and first-time diners.

“When you can do the fundamentals really well, that can become your competitive edge, and that’s why people will choose you over others. That’s been our secret sauce right now.”

Taking On Fast Food With Bigger Portions

Chili’s is also expanding its value strategy by targeting fast-food competitors.

Hochman recently introduced the chain’s latest offering – the Big Crispy chicken sandwich – which joins menu items inspired by McDonald’s Quarter Pounder and Big Mac.

Those burger-inspired meals, sold as value combos with chips and a drink, have helped drive nearly 50% revenue growth since 2022.

The strategy reflects what Hochman sees as growing consumer frustration with rising fast-food prices.

Having previously served as KFC U.S. president during his time at Yum! Brands, he believes Chili’s can offer customers better value.

“There’s a lot of guests out there that are a little bit frustrated where fast food prices have gone, and historically fast food has been about value and convenience.”

“We saw that opportunity based on what was happening in prices and said, ‘Hey, we think we can get a combo meal at $10.99.'”

Bigger Portions as a Selling Point

Hochman says portion size has become another competitive advantage.

He claims the new Big Crispy sandwich uses a chicken fillet that is 80% larger than McDonald’s equivalent.

“We see that on social media where consumers complain about how small portions have gotten.”

More Menu Changes on the Way

The menu overhaul isn’t finished.

Hochman says Chili’s is revamping its pasta dishes so they’re served “piping hot,” while introducing a new protein option that has yet to be announced.

The company is also refreshing its “Guiltless Grill” range with larger salads and healthier menu options.

Confident Despite Economic Pressures

Like most restaurant operators, Chili’s continues to face broader economic challenges as consumers become more cautious with discretionary spending.

Even so, Hochman remains confident the brand can continue growing by focusing on customer experience.

“What I tell our team is we can control what we can control.”

“If consumers are going to pull back their trips to restaurants, are they going to choose the ones that maybe they had an OK experience last night, or are they going to choose the one that they know they’re going to have a great experience?”

He believes that commitment will keep Chili’s ahead regardless of economic conditions.

“We’re going win in that environment and then if the macro-environment gets better, we’re going to continue to win even more.”