Applebee’s: 15 Years of Reinvention Through Customer Focus, Value, and Interactive Food Experiences

 

For more than fifteen years, Applebee’s has been quietly—and steadily—rewriting the rules of casual dining. Long before its recent two-quarter streak of same-store sales growth, the brand began laying the groundwork for a comeback rooted in customer value, food discovery, and a keen understanding of America’s evolving eating behaviors according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®

In the late 2000s and early 2010s, as economic pressures reshaped consumer habits, Applebee’s doubled down on affordability and familiarity. Neighborhood value meals, comforting handhelds, and shareable appetizers became anchors for guests looking to dine out without breaking the bank. At the same time, takeout—once an afterthought—started gaining momentum. Applebee’s early investment in car-side, value-oriented bundles, and portable comfort-food items helped create a foundation that would later prove invaluable.

The Rise of Handhelds & Participatory Food Culture

By the mid-2010s, the American palate shifted again. Diners wanted bold flavors, customizable combinations, and social-food experiences shaped by TV food culture, Instagram, and the growing “I want to try something new” mindset. Applebee’s leaned in, expanding handheld sandwiches, sliders, and finger-friendly entrees designed for takeout, delivery, and in-restaurant social sharing. Even before “participatory food” became an industry keyword, Applebee’s was testing create-your-own samplers, mix-and-match combos, and flavor-forward platform innovations.

Innovation Meets Affordability

Fast-forward to the past few years, and Applebee’s strategic evolution has culminated in a revitalized menu engine. Under the leadership of VP of Culinary Shannon Johnson—who returned in 2023—the chain committed to quarterly menu drops: one new entrée and one new appetizer every cycle. These dishes don’t just refresh the menu—they reinforce the value-driven “2 for $25” platform, a cornerstone for price-sensitive diners throughout economic ups and downs.

The results speak volumes:
Last quarter’s 3.5% same-store sales jump included positive traffic, and executives say the momentum continues.

One of the biggest hits: a new Chicken Parm Fettuccine that quickly became the brand’s top-selling standalone pasta. It cleverly repurposes Applebee’s new hand-breaded chicken—already a win on sandwiches—into a craveable comfort entrée. The Ultimate Trio Appetizer Sampler, another breakout item, taps into the long-running popularity of customizable sharables. With 80,000 possible combinations, it turns every table into a flavor playground.

As Dine Brands CEO John Peyton puts it, each innovation emerges from culinary, marketing, and brand teams working as one, guided by guest needs and a strategic menu framework refined through years of market learning.

Real-Time R&D With Real People

One of Applebee’s most potent tools is something many chains talk about—but few execute at scale: live recipe iteration with consumers. In major markets, new dishes are served to focus groups, feedback is gathered instantly, and culinary teams tweak recipes in the room.

Too salty? Adjust.
Not crunchy enough? Rebuild.
Taste not quite there? Reformulate and retest within minutes.

By the time the session ends, the dish has often been refined two or three times—a hyper-responsive approach that grew from Applebee’s long history of listening to guests.

Riding the Flavor Waves of Today

The latest releases continue the strategy:
• Crispy Pickle Fries, riding the pickle boom across menus and social media.
• The Grilled Cheese Cheeseburger—a four-cheese, jam-smothered comfort bomb engineered around the simple insight Peyton shared: “Guests love cheese.”

These aren’t just menu items; they’re extensions of a 15-year trajectory that blends value, indulgence, portability, and food-as-experience—principles that have become central to modern casual dining.

 

Grocerant Guru® Insights

1. Handheld foods are the gateway to long-term customer adoption.
Handhelds—sandwiches, sliders, wraps—meet consumers where they live today: on the go, value-seeking, and looking for comfort without commitment. Applebee’s early investment in handhelds positioned them perfectly for the rise in takeout and delivery.

2. Rotational menu innovation keeps diners engaged and returning.
Quarterly food news mimics grocery’s limited-time-offer culture, giving customers a reason to check in frequently—especially when tied to strong value platforms like 2 for $25.

3. Participatory, build-your-own items create emotional brand affinity.
The Ultimate Trio succeeds because diners play with their food. Customization—long a grocerant hallmark—turns a menu into an interactive experience and cements brand loyalty.

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How Chili’s Is Cooking Up a Hot Streak in a Cool Economy

 

In a casual dining landscape where many brands are still trying to find their footing, Chili’s is striding confidently—steak fajita platter in one hand, frozen margarita in the other. The Dallas-based chain has now posted five straight quarters of double-digit same-store sales growth, culminating in a 24% jump in Q4 fueled by 16% traffic growth. That’s on top of last year’s 15% gain—meaning a two-year growth of 39% that leaves competitors like Applebee’s and Red Robin playing catch-up.

What’s the secret sauce? Let’s break it down through the Tacoma, WA based Steven Johnson, Foodservice Solutions®, Grocerant Guru® lens: Price, Value, Service, and Social Equilibrium.

 

Price & Value

The engine driving this comeback is Chili’s $10.99 “3 for Me” value meal—an anchor offering that’s both inflation-proof and appetite-friendly. By pairing this core deal with strategically priced upsell items—like the Big QP Burger, ribs, and $10 frozen margaritas made with Patron—Chili’s manages to deliver perceived value without racing to the bottom on price. The numbers tell the story: even with broader economic pressure, guests are trading up, ordering nearly 5% more high-ticket items and tacking on apps or desserts.

 

Service & Operational Excellence

Value brings them in; service keeps them coming back. Since CEO Kevin Hochman’s turnaround began three years ago, Chili’s has:

·       Invested $160 million more in labor than in 2022.

·       Shrunk its menu by 25% to focus on core, well-executed items.

·       Reached record-high food quality scores and slashed “guests with a problem” to a mere 2.3%.

Add to that tech upgrades—like redesigned server tablets to reduce order-entry frustration—and operational best practices lifted from the brand’s top-performing locations, and you’ve got a service model that scales.

 

Social Equilibrium

Chili’s has hit a rare balance: it knows how to go viral without becoming a gimmick. The Triple Dipper appetizer found TikTok fame last year (hello, cheese pulls), but the brand didn’t stop at social buzz. It’s now anchoring national TV campaigns with that same product, turning fleeting trends into long-term menu momentum. The result? 15% of transactions now include a Triple Dipper—a staggering attachment rate for a casual-dining app.

 

Consumer Focus: Winning Back the Old, Welcoming the New

One of the most underestimated parts of Chili’s success story is how it’s bridging the gap between legacy loyalists and first-time visitors.

For longtime customers, Chili’s is reestablishing trust by bringing back the hits—ribs worthy of the old jingle, burgers built to rival fast-food icons, and ingredient upgrades that feel like a commitment to quality, not cost-cutting. These guests remember the “glory days” and are coming back to see that Chili’s has recaptured its stride.

For new customers, Chili’s is making itself relevant through value-driven entry points, social-media-fueled curiosity, and upgraded in-restaurant experiences. Gen Z and Millennials may not have grown up with the Baby Back Ribs ad, but they’re responding to Instagram-worthy plating, TikTok challenges, and the allure of a big-brand-quality burger in a casual dining setting.

The result is a multi-generational dining experience that blends nostalgia with novelty—a combination that’s rare in casual dining today.

 

The Nostalgia Play

In turbulent times, smart brands reach back to the familiar. Chili’s is leveraging legacy assets like its ’90s “Baby Back Ribs” jingle and classic menu anchors. Why does this work? Four reasons:

1.       Emotional Comfort – Familiar flavors and jingles trigger warm memories, reassuring consumers during uncertain periods.

2.       Brand Trust – Legacy menu items remind guests the brand has stood the test of time, building confidence in quality and consistency.

3.       Low Cognitive Load – When budgets are tight, customers gravitate to “safe bets” they already know they’ll enjoy.

4.       Multi-Generational Appeal – Parents who loved Chili’s in the ’90s now bring their kids, creating a cycle of repeat visits and cross-generational loyalty.

 

The Grocerant Guru’s Three Recommendations for Chili’s Moving Forward

1.       Seasonal Legacy Revivals – Introduce limited-time throwback menu items tied to past campaigns or flavor profiles (think: “1997-style Baby Back Rib Sauce” month) to tap nostalgia spikes without menu clutter.

2.       Grocerant Extension Play – Bring Chili’s signature items—like Triple Dipper sauces or Big QP Burger seasoning—into retail grocery channels for at-home trial, driving both revenue and brand salience.

3.       Social-to-Table Challenges – Create interactive campaigns where guests can post their Chili’s “food moment” for a chance to have it featured on menus or in-store signage, blending user-generated content with real-world dining incentives.

 

The Road Ahead

With new nachos, a chicken sandwich relaunch, ingredient upgrades (50% thicker bacon—amen), and a plan to remodel stores by 2027, Chili’s is signaling it’s not coasting on this momentum. The chain expects mid-single-digit same-store sales growth in fiscal 2026—slower than the current fireworks, but still outpacing the industry.

For the casual dining world, Chili’s is proving a simple truth: price and value open the door, service and social connection keep the table full, and nostalgia done right can turn yesterday’s jingle into today’s cash register chime.

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Red Robin: From a Poor Man’s Trader Vic’s to Lackluster Sameness

 

A Vibrant Beginning: Red Robin’s Rise

In the 1960s, Red Robin was born as a quirky tavern in Seattle, Washington. Its founder, Gerry Kingen, envisioned an upscale yet casual dining experience that stood apart from typical burger joints. Red Robin embodied a sense of flair, much like a toned-down Trader Vic’s, blending an eclectic atmosphere with gourmet burgers, bottomless steak fries, and cocktails according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

The restaurant’s early growth was fueled by a commitment to quality ingredients and a customer-first approach, making it a standout player in the casual dining space. Throughout the 1970s and 1980s, Red Robin expanded methodically, capitalizing on a fun, family-friendly environment with a menu that differentiated it from standard fast-food chains. By the 1990s, it had become a go-to spot for a premium burger experience, with a loyal customer base that appreciated the unique mix of indulgence and approachability.

The Tipping Point: Acquisition and the Onset of Sameness

When Kingen sold the chain in the mid-2000s, corporate ownership took the reins, ushering in a new era that prioritized cost-cutting over quality and experience. This shift mirrored a common pattern in the restaurant industry, where financial stakeholders look for efficiencies at the expense of differentiation.

Key cost-cutting measures included:

·         Ingredient Downgrades: The chain began to use lower-quality meat, pre-processed ingredients, and thinner fries, diminishing the once-premium feel.

·         Menu Standardization: Unique and signature items were stripped away in favor of mainstream flavors that blended in with other mid-tier burger chains.

·         Aesthetic Homogenization: The once-funky, playful interior designs were replaced with generic decor, robbing Red Robin of its character.

·         Marketing Malaise: The shift in branding relied on uninspired, one-size-fits-all messaging that failed to differentiate the chain in an increasingly crowded market.

The results were predictable. Customer retention declined as diners found little reason to choose Red Robin over competitors like Chili’s or Applebee’s. What was once a quirky, experience-driven brand had become another interchangeable face in the casual dining landscape.

The Danger of Sameness: A Death Sentence in the Food Industry

The restaurant industry thrives on differentiation. Bland uniformity has been the downfall of numerous once-thriving chains (think Howard Johnson’s, Bennigan’s, and even Quiznos). A few critical food industry marketing principles highlight why:

·         The Perception of Value Matters More Than Cost-Cutting: Studies show that customers will pay more for perceived quality and experience. A restaurant that skimps on ingredients while charging the same price creates cognitive dissonance, leading to customer churn.

·         Brand Memory Requires Boldness: According to food marketing analytics, a brand that fails to create an emotional connection is more likely to be forgotten. Diners crave unique offerings, not another variation of a burger they can get elsewhere.

·         Social Proof and Digital Engagement Drive Modern Success: Chains that fail to innovate and excite their customer base through digital marketing and social media storytelling quickly fade into irrelevance.

Three Ways to Boldly Move Forward

To avoid the abyss of sameness, Red Robin and similar brands must take decisive action:

1.       Reignite Menu Innovation: Bring back bold flavors and unique items that differentiate the chain from competitors. Consider limited-time offerings, locally sourced ingredients, and Instagram-worthy dishes that excite customers.

2.       Emphasize Experience Over Efficiency: Red Robin once thrived on atmosphere. Reintroducing a distinctive dining experience—whether through interior design, personalized service, or themed events—can help restore the brand’s identity.

3.       Leverage Digital Marketing with Authenticity: Engage customers with interactive social media campaigns, influencer partnerships, and gamified loyalty programs that build a true brand community instead of relying on generic promotions.

Red Robin’s fate is not sealed. With a strategic return to its roots, a bold reimagining of its brand identity, and an embrace of what truly makes dining experiences memorable, it could rise again. The alternative? A slow fade into obscurity—a fate suffered by too many once-beloved restaurant chains that failed to stand out in the sea of sameness.

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Food Marketing Evolves with Technology

Success does leave clues.  Digital marketing and digital loyalty companies within the food space have created a platform that gets results according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. It is at the intersection of the consumer, food company, and that technology is elevating the opportunity for growth that drives top line sales and bottom-line profits today in the food space.

So, when Seated acquired VenueBook, which will allow it too book events at restaurants and collect rewards they leveraged both the power of the consumer and the restaurant relationship while empowering incremental brand familiarly for Seated according to Johnson.  Remember that the NPD Group found: Digital restaurant ordering by adults 65 and older increases 428% year-over-year in June, 2020.  That help drive technology relevance and adoption forward by at minimum three years according to Johnson.

 The acquisition marks a move into the private events business for Seated, a reservation platform that offers rewards for users. During the pandemic, Seated, added pickup and delivery capabilities with a new service called Seated at Home, and under the newly created Seated Events arm, guests will be able to get rewards by booking private events as well. The pandemic will not last forever and birthday parties, graduations, Easter Dinners, and Sunday Brunch will be back in full demand.

So, considering that consumers can redeem the rewards for gift cards to brands such as Amazon and Starbucks it makes sense that is platform will continue to expand in new areas with consumer adoption following along according to Johnson.

“We are thrilled to be able to offer yet another way for restaurants to maximize their profitability. With Seated Events, Seated at Home, and Seated, restaurants can drive demand to their three primary sources of revenue in a single, easy to use rewards platform,” said Bo Peabody, executive chairman and co-founder of Seated, in a statement.

The acquisition also expands Seated’s geographic footprint into the New York tri-state area, Denver, the Bay Area and Washington, D.C. It currently operates in New York City, Boston, Chicago and Atlanta.

Seated raised $30 million to acquire VenueBook.  The $30 million in funding was led by venture capital firm Insight Partners, with other contributions from Craft Ventures, Greycroft and Rho Capital Partners. The company said it would use the money to build out its platform and improve new products.

Do you need to expand you brands invitation? Are you looking a customer ahead? Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.