A battle for meal-deal supremacy is brewing between the nation’s two largest bar-and-grill chains.
The fight pits the established leader in casual-dining value meals—Chili’s $10.99 3 for Me combo—against a frisky newcomer, the $9.99 Really Big Meal Deal from Applebee’s.
It comes as Applebee’s looks to make up ground lost to the rival Chili’s, which has ridden its value message to impressive growth recently.
The competition this week spilled into public view on social media, where the two chains exchanged words on X, the site formerly known as Twitter.
“$9.99 The Really Big Meal Deal >>>>> that other $10.99 deal,” Applebee’s posted on Friday, an obvious reference to Chili’s 3 for Me deal.
On Tuesday, Chili’s responded. “@ us next time,” the chain said. “don't forget, our 3 for $10.99 comes with bottomless drinks, UNLIMITED chips and salsa, and a Big Smasher with fries. y'all could literally never.”
@ us next time...
— Chili's Grill & Bar (@Chilis) December 10, 2024
don't forget, our 3 for $10.99 comes with bottomless drinks, UNLIMITED chips and salsa, and a Big Smasher with fries. y'all could literally never. https://t.co/2VfbCVLymz
The origins of this beef go back to mid-2022, when Chili’s launched the 3 for Me value menu, offering customers their choice of an entree, a soft drink and an appetizer starting at $10.99.
The meal was a hit with customers, who were looking to get more bang for their buck as inflation set in. Chili’s bolstered the offering this year when it introduced the Big Smasher burger, a riff on McDonald’s Big Mac, and began touting 3 for Me as a better value than fast-food chains like McDonald’s.
The strategy has helped Chili’s outpace Applebee’s—and most other restaurants, for that matter—over the past couple of years. Since the third quarter of 2022, when Chili’s introduced the 3 for Me, its same-store sales are up 24%, while Applebee’s are down 4.5%—a difference of 28.5%. Chili’s has also gotten a boost from its Triple Dipper appetizer platter going viral on TikTok, twice.
Applebee’s has long been the larger of the two bar-and-grill chains, with systemwide sales of more than $4.35 billion last year, according to Technomic data. But Chili’s is suddenly nipping at its heels. With total sales last year of more than $4 billion, it could surpass Applebee’s in 2024.
Now Applebee’s is fighting back by taking a page from Chili’s playbook, even as it pokes the rival chain on social media.
The Really Big Meal Deal, which debuted last month, offers a choice of a bacon cheeseburger or a chicken sandwich, fries and a fountain drink for $9.99, or $1 less than Chili’s meal. It will be available for a limited time, though Applebee’s has not said just how long that will be.
The meal deal is a clear pivot in the chain’s value strategy, which had previously centered on a rotating selection of discounted items, such as $1 margaritas and 50-cent boneless chicken wings. Executives said last month that this approach has become less effective because customers are more interested in knowing the price of their entire meal rather than individual items.
In other words, customers prefer what Chili’s has been doing. And Applebee’s has clearly been taking notes. A new TV ad promoting the Really Big Meal Deal is conspicuously similar to Chili’s recent 3 for Me ads, for instance.
Chili's Big Smasher meal. | Photo courtesy of Chili's
In Chili’s ad for the Big Smasher, the burger is placed side by side with a comparatively meager fast-food burger. Customers can have the Big Smasher, a voiceover says, “or you could settle for just some other burger at a drive-thru.” This message seemed to resonate with customers, who have complained about the high price of fast food.
The new Applebee’s spot, meanwhile, opens with a shot of an unappetizing fast-food meal. A voiceover says, “Sure, a meal like this is an option, but why would you settle for less?” Then, bright images of Applebee’s cheeseburger and new Big Cluckin’ Chicken Sandwich fill the screen.
Applebee’s has also taken the fight to Chili’s more overtly on social media. But that plan has its risks. Chili’s response to Applebee’s post had racked up more than 14,000 reposts by Wednesday morning, and Applebee’s was being inundated with replies from Chili’s fans.
“Chili's embarrassed you,” wrote one user. “I mean..... You did it to yourself.”
In a statement, Applebee’s CMO said, “We know our guests want great food at an incredible value. The competitive landscape today has presented an opportunity for us to boldly introduce new value offerings. At Applebee's, we’re known as a place to get a delicious meal at a great price, and the Really Big Meal Deal featuring our new Big’ Cluckin’ Chicken Sandwich provides exceptional value for our guests.”
Chili’s had not responded to a request for comment as of publication time.
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