Kevin Hochman on pricing strategy
From Brinker International CEO Kevin Hochman goes one-on-one with Jim Cramer · · CNBC Television
“In terms of the value equation, we've been able to hold $10.99 now for a long time. Doesn't matter where you go in the country, even in higher wage states like California, you're always able to get a $10.99 meal from Chili's, and it's always something good. We make it really easy to get abundant value, and I think that's winning right now in the market.”
On , Kevin Hochman, President, Chief Executive Officer & Director at BRINKER INTL INC, spoke about pricing strategy during Brinker International CEO Kevin Hochman goes one-on-one with Jim Cramer on CNBC Television.
About Kevin Hochman
Kevin Hochman, president and CEO of Brinker International, has described the company's recent performance as part of a "turnaround" for the Chili's brand, which he said is in its "early to mid innings." He attributed strong same-store sales growth—including a reported 31% increase in one quarter—to a focus on "the fundamentals of casual dining," such as food quality, service, and atmosphere. Hochman stated that the company increased its marketing budget from $32 million to $137 million over three years and credited the marketing team, which he said was named "brand of the year" by Ad Age, for making Chili's "relevant again." He noted that a TikTok campaign featuring the "Triple Dipper" appetizer drove an 80% increase in sales of that item and helped introduce the brand to a new generation. Hochman has emphasized a strategy of "ruthless simplification," including a 25% reduction in the menu over two years, which he said reduces complexity for staff and improves consistency. He highlighted the introduction of the "Big Smasher" burger at a $10.99 price point, which he said was developed in response to consumer complaints about fast-food prices. Hochman stated that the company maintains a "barbell strategy" on pricing, offering both value options like a $6 margarita and premium items. He said average unit volumes at Chili's grew from $2.9 million to $4.2 million during his tenure, and that restaurant operating margins improved from 12% to 18%. Looking ahead, Hochman said the company plans to begin a "Reimage" program to update older restaurants and expressed interest in building new Chili's locations in states where the chain is currently absent, such as Oregon.