Kevin Hochman on cost management
From Brinker International CEO Kevin Hochman goes one-on-one with Jim Cramer · · CNBC Television
“The number one thing that you can do to offset cost and labor pressure is to continue to grow your business. It's going to be very difficult to simply cost cut your way to control margins and maintain margins with the inflationary environment that we all have to deal with. So number one is we got back to growth. We are in invest to grow mode.”
On , Kevin Hochman, President, Chief Executive Officer & Director at BRINKER INTL INC, spoke about cost management 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.