For a long time, Chili’s has served its french fries in little metal baskets. Employees are trained to line the baskets with paper and then place them on a small paper-lined tray.
During new CEO Kevin Hochman’s “listening tours” in markets across the country this summer, employees at one stop brought up the somewhat fussy fry presentation.
“Why do we do all this?” they wondered.
At lunch later that day, Hochman asked the staff how they would serve the fries differently. They brought out a paper-lined basket with the fries nestled next to a burger.
Hochman’s first thought: It looked like a lot more fries than Chili’s standard 6-ounce portion. He asked the staff to weigh them. They came in at 6 ounces.
“So basically we’re adding all this complexity for the pack-out, but it’s actually making the fries look like there’s less fries on the plate,” he said.
Not only that, but the baskets, which have holes to let steam escape, are a pain to wash. Chili’s dishwashers do 40 million of them a year. Oh, and by the way: They cost $10 each.
So the chain is getting rid of the baskets in favor of the staff’s suggestion. It’s just one of a raft of operational tweaks coming to Chili’s under Hochman, who has thrown himself head first into soliciting field-level employees for ways to simplify their jobs and ultimately return the brand to its roots as a fun place to work and eat.
“I think this idea of allowing the experts that are closer to the business lead more of the thinking is going to become the way we do business.”
The two-way collaboration is a habit Hochman developed during his more than eight years at Yum Brands. Because most of Yum’s restaurants are franchisee-operated, one of the only ways to exchange feedback was on the ground.
“It doesn’t really matter who owns the restaurants. That’s a pretty good practice,” Hochman said.
It has proven fruitful during his roughly four months at the helm of Chili's parent Brinker International. Employees have recommended ditching a process called portioning that requires them to count shrimp every morning, for instance. And they brainstormed ways to simplify a new dip trio appetizer that often had them criss-crossing the kitchen collecting dips. (One solution: Encourage customers to order certain dips with a default option that’s easier to execute.)
“It’s that kind of dialogue that we could take a good item and make it great,” Hochman said.
The CEO seems eager for fresh input from any and all informed sources. At a summit with suppliers recently, he peppered the people who make Chili’s sauces and burger patties with questions about what the restaurant could do better. During a conversation about Chili’s burgers, Hochman mentioned that staff are trained to smash the patties so they cook better, a step they don’t exactly enjoy.
The supplier offered a simple fix: “We could just make them flatter for you.”
“I think this idea of allowing the experts that are closer to the business lead more of the thinking is going to become the way we do business,” Hochman said.
Chili’s is implementing the feedback as fast as possible, with plans to roll out a “slug” of updates every six weeks. When it unveiled the first batch at a general manager convention last month, the GMs cheered.
“A lot of people ask me when it’s going to end,” he said. “I just don’t think ever.”
“We’re actually going to be moving back to what made the brand so special.”
The transformation comes at a critical time for Chili’s. Like many casual-dining chains, it’s facing slowing traffic and sales as customers brace themselves against inflation. Meanwhile, the chain’s own costs are rising, which is eating into its profits. And employee turnover remains a problem—a tough pill to swallow for a brand that prides itself on its long-tenured workers, known as Chiliheads.
While some of the chain’s challenges are macroeconomic, others are left over from the pandemic. For one thing, Chili’s has gotten a lot more complex over the past 2.5 years. It expanded its delivery partnerships, added curbside pickup and launched virtual brands, all of which created extra work for the kitchen.
At the same time, Hochman said, “the business didn’t grow that much.”
“It’s not like the restaurants earned a whole lot more labor to deal with all this complexity.”
The chain hopes trimming operational fat can help on multiple fronts: Employees will have less to do, which will make them happier and allow them to spend more time with guests. Meanwhile, execution will be sharper, speeding service and table turns and clearing a path for more sales.
Chili's is positioning the bar as a gameday destination and is once again encouraging staff to wear their team's jersey. / Photograph courtesy of Chili's Grill & Bar
But not all of Hochman’s plans call for cutting back. To really spark growth, he wants to revive programs that were paused during the pandemic but that once made up a big part of the brand’s identity.
One of those things is the bar. As he learned more about Chili’s, Hochman kept hearing that when the brand was at its best, the bar was rocking, creating a fun atmosphere that would bleed over into the dining room. But it became less of a focus during COVID, for obvious reasons.
Under Hochman, it’s leaning into the channel, refreshing the menu with items such as a Philly cheesesteak, curly fries and chicken wings from its It’s Just Wings virtual brand. On the beverage side, it has a new happy hour menu and big plans for ranch water, a lighter take on a margarita that Hochman wants to “democratize” across the country.
It’s also bringing back the NFL Sunday Ticket streaming service in hopes of becoming a destination for football games. Staff and customers will once again be encouraged to wear the jersey of their favorite team on gameday, a tradition that went away during the pandemic.
“That’s a pretty big idea, and it’s right in front of us,” he said of the bar. “We were just so focused on COVID and surviving.”
Now, he’s steering the chain back toward what it has traditionally done best in hopes of bringing back the guests it’s been missing—and then some.
“At the end of the day, we want to serve amazing food you can only get at Chili’s with friendly service and an inviting atmosphere,” he said. “We’re actually going to be moving back to what made the brand so special.”