About Douglas Comings
Douglas Comings, Senior Vice President and Chief Operating Officer for Chili's Grill & Bar at Brinker International, has been involved in the company's recent strategic initiatives. In October 2024, Brinker CEO Kevin Hochman discussed Chili's performance, noting that comparable sales grew 13.5% in the most recent quarter. Hochman attributed this to investments in the guest experience, better service levels, and menu tightening. He also mentioned the company's use of TikTok to reach new customers and the introduction of value-oriented menu items such as the $10.99 Three For Me lunch menu and a $6 margarita. Hochman stated that the company aims to meet a range of guest needs, from value to premium options.
In September 2023, Hochman described the company's turnaround as "well underway," with a focus on reinvesting $55 to $60 million in advertising to drive traffic. He emphasized a strategy of simplifying operations by listening to restaurant teams and implementing their ideas to improve the guest experience and profitability. Hochman noted that the company is focused on improving restaurant operating margins and managing labor, and that regardless of macroeconomic conditions, the priority is to provide the best possible guest experience to win market share.
Source: AI-verified profile updated from Douglas Comings's recent appearances.
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Transcript (10 segments)
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Host0:01
Chili's owner, Brinker International, appears to be bucking the trend. Comps growing 13.5% during its most recent quarter, the best performing restaurant stock year to date, up more than 70%. Joining us now is Brinker CEO Kevin Hochman. As Chili's announces a new lunch combo in collaboration with professional eater Joey Chestnut, it's great to have you, Kevin. Welcome.
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Kevin Hochman0:23
Thanks for having me on the show.
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Host0:25
How do you explain the industry leading double digit comps and traffic growth that you've seen in a tougher environment?
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Kevin Hochman0:33
You know, I think the recipe has been pretty simple and straightforward. If consumers are going to be pulling back on trips, they need to go to restaurants they trust or will have a great experience. We've been at this for over two years making an investment in the guest experience, better service levels. We've tightened up menus so it's almost a quarter smaller than it was two years ago so that the restaurant teams can more consistently execute and make great food. We've certainly invested in the fun atmosphere in our restaurants. And then we've turned on advertising, this industry leading value that we had before I got here as CEO, but now we're telling customers about it, and its industry leading value not just in terms of a hot price point but the quality of the food is really good, and so that's why people are coming to us and we're going to keep doing that and keep winning in the market.
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Host1:23
And TikTok, the Triple Dipper video has more than 40 million views. Was that part of the strategy, and is that contributing to the growth?
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Kevin Hochman1:34
Well, certainly. Obviously being relevant again and being in the zeitgeist, we were in the center of everything. We had amazing ads and people appreciated we were on the forefront of culture. We're doing that again and TikTok is a place where we've made some investments. Our food is experiential and we're finding a whole generation is being introduced to Chili's that have never come or came when they were young and having an amazing experience, having fun with the food. Now the Three for Me lunch menu.
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Host2:14
If we're in an environment where pricing is inflecting the quick service, does holiday get more promotional with what's going on?
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Kevin Hochman2:34
I can tell you what we're going to do. We stick to the fundamentals of a great experience and a fun atmosphere with abundant food at hot price points. We've done that with the Three for Me menu, inspired by the famous fast food combo meals, only we believe they're a much better value. So things like our Big Smasher burger at $10.99. It's similar to a Big Mac but at a very hot price point and that comes with not just fries but unlimited drink and chips and salsa. We're going to provide the industry leading value, service levels we think are unbeatable in the industry, and we're going to continue to win.
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Host3:19
Unlimited chips and salsa? That's good. What is happening on pricing? I know you have used the word value a lot and that's what it's about, the perception of value for consumers. Prices at restaurants have been lower to come down. Is that what you're seeing? Do you still have pricing power?
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Kevin Hochman3:41
We believe we do. The thing we're really proud of, we're making sure we meet all guest needs. There are some guests that come in and that's all the money they have to spend on a meal out of home. We're going to meet with a $6 margarita made with great spirits and great ingredients or $10.99 Three for Me or Three for Lunch menu. We're going to make sure we meet those needs. There are guests that come in and want something more premium, a little smoother. You can go up to Casa Migos, the Don Julio today on our new menu. As long as we meet all the guest needs.
