What's Happening?
Brinker International's CEO, Kevin Hochman, has attributed the recent growth of Chili's to enhanced marketing strategies. In a discussion with CNBC's Jim Cramer, Hochman revealed that the company significantly increased its marketing budget from $32 million three years ago to $137 million in the past fiscal year. This investment has been instrumental in driving a 23.7% increase in same-store sales for Chili's. The company has also benefited from social media influencers who have promoted the brand, often without paid endorsements. Additionally, the standardization of a $10.99 value meal across U.S. markets has been well-received by customers. Despite rising costs in labor and goods, Brinker is leveraging growth to maintain margins, focusing on improving locations, food, and labor.
AD
Why It's Important?
The strategic marketing investments by Brinker International underscore the importance of adaptive business strategies in the competitive restaurant industry. By increasing its marketing budget and leveraging social media, Brinker has successfully enhanced brand visibility and customer engagement. This approach not only boosts sales but also helps the company navigate the challenges posed by inflation and rising operational costs. The success of Chili's could serve as a model for other businesses in the sector, highlighting the potential of targeted marketing and value offerings in driving growth and customer loyalty.
