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I went to Chili's and saw why the chain is competing with fast-food joints like McDonald's

I went to Chili's and saw why the chain is competing with fast-food joints like McDonald's

Chili's reports a 6% rise in same-store sales, taking on McDonald's with new offerings, tech upgrades, and a focus on value-driven dining.

The reporter stands outside of the entrance of a Chili's restaurant.
Chili's is increasingly taking on fast-food chains like McDonald's.
  • Chili's keeps growing sales, providing more evidence of a successful turnaround.
  • It's also taking on fast-food restaurants like McDonald's.
  • I went to Chili's to see whether the sit-down restaurant is really a competitor to McDonald's.

Chili's is hot.

The restaurant chain continues to reap the rewards of its turnaround: Same-store sales grew 6% during the company's fourth quarter, parent company Brinker International reported on Wednesday. That marks the 21st consecutive quarter that Chili's reported same-store sales growth, Brinker CEO Kevin Hochman said during the company's earnings call.

There are several aspects to Chili's turnaround. The restaurant chain has adopted a cheeky posting style on social media, which has drawn in Gen Z diners. It's also upgraded lots of outdated technology, such as the tablets that its waitstaff use to send orders to the kitchen.

Chili's is also competing with unlikely rivals: Fast-food chains. Some of the chain's newest menu items appear to take on McDonald's classics like the Quarter Pounder, for instance.

"The customer reviews and social media comments have been excellent, declaring Chili's victorious for size, price, value, and taste versus fast food," Hochman said during the company's earnings call.

McDonald's latest quarterly comparable sales growth came in at 0.8% — a slower pace that CEO Chris Kempczinski attributed to execution problems, such as the rollout of its latest value menu. The burger giant also replaced its US president when it reported earnings last week.

A few years ago, referring to Chili's and McDonald's as rivals would have made no sense.

So, having not been to a Chili's restaurant in over two decades, I wanted to see how exactly the chain is managing to eat the Golden Arches' lunch. Here's what my visit was like.

Do you have a story idea about Chili's? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.

I visited this Chili's restaurant in Alexandria, Virginia.
Person wearing sunglasses takes a selfie outside a Chili's restaurant with a TO GO sign visible.

Located near a major highway and lots of shopping options, this Chili's restaurant was situated in the heart of the Northern Virginia suburbs.

The restaurant was mostly empty when I showed up, but that changed.
Empty restaurant dining area with red booths, wood tables, striped walls, hanging lights, and visible baby back ribs signage.

I showed up just after 5 pm on a Thursday. There were plenty of tables, and the host seated me right away.

While this restaurant appeared to be just under half full, there were definitely signs of life. A table over, a party of five seemed to be celebrating a reunion of some kind.

As I ordered and ate, I saw more people trickle in, from single diners to families.

There were plenty of fast-food adjacent options on Chili's menu.
Restaurant menu spread highlights Big Mouth Burgers with large burger photos, customization options, and guacamole add-on pricing.

Business Insider has reported on Chili's encroachment on fast-food restaurants' turf, whether it's through burgers or fried chicken sandwiches.

I didn't see anything on the menu about Chili's 3 for Me deal, which offers patrons an appetizer, an entrée, and a beverage for $10.99. I called the restaurant later about this, but the employee I spoke with didn't know why the deal wasn't there.

Instead, I ordered the Spicy Big Crispy chicken sandwich with fries for $16.29.

There were also lots of appetizer choices.
A hand holds an open Chili's menu showing The Famous TRIPLE DIPPER appetizer section with sauces and fried items.

I also ordered two Triple Dippers — six items in total — from Chili's Triple Dipper menu to sample as much as possible. Each was $17.99.

Chili's tech upgrades were apparent on my visit.
Restaurant table tablet displays a Chili's membership offer for free chips and salsa beside a drink menu.

Part of Chili's turnaround has been upgrading its in-restaurant tech. This tablet included games that I played while I waited for my food. I spent the most time playing one called "Subway Rush," which involved guiding a man around obstacles as he ran through a street chased by drones. There was also a button to log into a Chili's loyalty account.

Later, I used it to pay my check when I was done eating — a handy feature that saved me from having to catch my waiter just to request the bill.

My food arrived quickly.
Chili's restaurant booth table with baskets of burgers, fries, wings, sauces, drinks, and tabletop promotional signs.

My chicken sandwich and one Triple Dipper arrived less than 10 minutes after I ordered them. I ordered a second Triple Dipper to go to try later.

My favorite Triple Dipper item was the Big Mouth Bites…
Hand holding a small cheeseburger slider with melted cheese, bacon, onions, and dipping sauces nearby.

Essentially sliders, these burgers provided a beefy hit, plus a little bacon on each. I wondered whether I should've ordered a regular-sized Big Mouth burger instead of my chicken sandwich.

As a cheese lover, I also liked the gooey mozzarella sticks.

…while Chili's boneless wings were less enjoyable.
A fork holds a sauced chicken bite over a Chili’s basket with wings, burger, fries and dipping sauces.

Coated in too much Honey Chipotle sauce, these boneless wings were fine except for the breading, which fell off when I tried to pick them up.

Even so, I felt that each Triple Dipper provided reasonable value for money. And I had a wider selection of items to pick from than I would have at many fast-food chains.

The star of my meal was the Spicy Big Crispy.
Close-up of a hand holding a partially eaten fried chicken sandwich with pickles and fries in the background.

Chili's chicken sandwich meal cost me two or three times as much as a McCrispy meal at McDonald's. But it was also a much better sandwich.

The whole cut of chicken breast felt heartier than the more processed patty that many fast-food chains use. And while I didn't bring a scale or ruler with me, it was clearly much bigger than its McDonald's counterpart. Chili's says that the Big Cripsy's filet is "80% bigger than the average McCrispy breaded filet."

I don't eat tons of burgers or chicken sandwiches. But when I want one, this is pretty close to what I envision.

The fries and mac and cheese were average.
Basket of fries with a sandwich and a red cup of macaroni and cheese on restaurant paper.

The mac and cheese tasted fine, though there was too much sauce. It also struck me as an odd pairing with the friend chicken sandwich and the fries — is a vegetable too much to ask for?

The fries, meanwhile, were a little too thick and soggy for my taste. They left me longing for some thinner ones from McDonald's.

Overall, I was happy with my meal at Chili's.
A Chili's paper sleeve with promotional text rests on a wooden table beside a folded napkin.

With tax and tip, I spent just over $77 on two Triple Dippers, a Spicy Big Crispy chicken sandwich, and an iced tea.

That was slightly more than I expected to spend, given what I had heard about the 3 For Me deal. But the fact that the Triple Dippers were nearly meals in themselves made the pricing feel more reasonable.

Diners care a lot about value these days, and Chili's seems to offer that.
A Chili's restaurant exterior with branded signage, striped awnings, and parked cars in a lot.

While some consumers are cutting back on eating out, others are still willing to spend on restaurants — but they need to feel like they're getting a good deal when they do.

Yes, my trip to Chili's was more expensive than if I had eaten at McDonald's. But I also got more food, better food, and more choices for my money.

Read the original article on Business Insider