Trading Down While Dining Out: How Chili’s Redefined the “Night Out” Experience

 

For much of modern dining history, “going out to eat” meant more than just having a meal — it was a cultural event according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. In the 1950s and 1960s, dining out was a special occasion reserved for white-tablecloth restaurants, where service, silverware, and sophistication defined the experience. Dining out was about aspiration — a once-a-month or even once-a-year indulgence tied to celebrations, anniversaries, or business success.

By the 1980s and 1990s, American consumers began to “trade down” slightly, gravitating toward waterfront eateries, themed dining rooms, and “specialty restaurants” that promised atmosphere without the formality. Brands like Red Lobster, Olive Garden, and TGI Friday’s built their success on this transition — offering good food, fun energy, and approachable prices.

Today, the evolution continues. Dining out no longer requires a linen tablecloth; in fact, sometimes it includes a plastic one or none at all. The modern consumer defines “dining out” less by ambiance and more by value, engagement, and convenience. Trading down is no longer seen as a compromise — it’s a conscious choice to balance social connection with financial prudence.

 

The Rise of Chili’s: Trading Down Without Losing Out

Chili’s has become the embodiment of this new dining-out era. The brand’s recent performance underscores a fundamental shift in consumer behavior: Americans may be tightening their wallets, but they are not giving up the social joy of dining out.

In its most recent quarter, Chili’s reported 21.4% same-store sales growth — its sixth consecutive quarter of double-digit gains. Traffic rose 13.1%, outpacing the broader casual-dining segment by an astonishing 1,650 basis points. Even more notably, this growth was strongest among households earning under $60,000 a year — a group typically reducing restaurant visits amid inflation and economic uncertainty.

Kevin Hochman, CEO of Brinker International, attributes this surge to one simple strategy: value-driven innovation. Chili’s $10.99 “3 for Me” meal platform and its “Better Than Fast Food” campaign have positioned the brand squarely between quick-service affordability and casual-dining experience — a sweet spot where consumers feel empowered, not restricted.

Chili’s has proven that “trading down” can still mean trading up — in flavor, interaction, and experience. Their new crispy baby-back ribs saw sales jump 35% and profitability increase 29%, while the chain’s revamped frozen margaritas are selling twice as fast as before, despite a higher price point. This balance of value and indulgence reinforces that consumers don’t want cheap food — they want smart value and a sense of fun.

 

Participation, Personalization, and Presence

Dining out today is not about luxury; it’s about belonging. Consumers, especially younger ones, crave interactive and participatory dining — where they can laugh with friends, share photos, and enjoy food that feels both familiar and fresh. Chili’s excels here. Whether it’s the nostalgia of baby-back ribs or the customizable 3-for-Me platform, the brand taps into the social pulse of what dining out means in 2025: affordable connection.

Even Chili’s occasional missteps — like when fans revolted against the new Skillet Queso — reveal a brand that listens to consumers.  By quickly reinstating the original alongside the new version, Chili’s turned criticism into engagement, reinforcing a participatory brand culture where consumers help shape the menu.

 

The Grocerant Guru’s Four Insights on “Trading Down While Dining Out”

1.       Value Is the New Luxury:
Consumers no longer measure dining experiences by price or polish. They measure them by how good it feels for what they paid. Chili’s success proves that brands offering perceived value can outperform even in tight economic conditions.

2.       Social Dining Supplants Fine Dining:
Shared moments now outweigh plated perfection. The modern diner values laughter, service speed, and flavorful familiarity more than white linens and reservations.

3.       Trading Down ≠ Giving Up:
Consumers aren’t abandoning restaurants; they’re curating their experiences — choosing brands like Chili’s that deliver connection and comfort without compromise.

4.       Experience Drives Repeat Visits:
Interactive, customizable menus and responsive brand engagement (like Chili’s queso comeback) transform casual visits into emotional loyalty. Consumers want to feel heard — and fed.

 

Think About This

From white-tablecloth dining to plastic-table charm, America’s definition of “dining out” has always evolved alongside its economy and culture. Today’s diners are trading down not because they have to — but because they want to enjoy value, connection, and fun on their own terms.

And right now, Chili’s is serving that up hotter — and smarter — than anyone else.

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how www.FoodserviceSolutions.us can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit:  www.FoodserviceSolutions.us for more information.

Why Multi-Brand Restaurant Companies Struggle

 

What Is a Multi-Brand Restaurant Company?

A multi-brand restaurant company owns and operates more than one restaurant brand under a single corporate structure. These brands may target different demographics, cuisine styles, or service models—think fast casual, full service, or QSR (Quick Service Restaurant). Examples include Yum! Brands (Taco Bell, KFC, Pizza Hut) and Inspire Brands (Arby’s, Buffalo Wild Wings, Sonic Drive-In). In theory, this approach offers diversification and risk mitigation. In practice, however, many of these companies stumble over internal complexities and shifting market demands according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

 

The Complexity of Brand Messaging

One of the most persistent challenges multi-brand operators face is brand messaging confusion. Each restaurant concept is supposed to have a unique identity—yet under shared ownership, those identities often become diluted.

For example:

·       Marketing cannibalization occurs when brands under the same parent target similar customer segments, reducing effectiveness.

·       Brand inconsistency arises when operational efficiencies (like shared sourcing or menu engineering) blur the culinary distinction between brands.

·       Customer disconnect grows when loyalty programs or omnichannel platforms feel generic instead of tailored to each brand’s DNA.

The result? Consumers stop seeing these restaurants as authentic, and loyalty erodes.

 

Six Foundational Food Industry Cornerstones of Success They Overlook

According to Steven Johnson, the Grocerant Guru® and foodservice strategist, many multi-brand companies forget the six pillars that historically drive restaurant success:

1.       Menu Clarity & Simplicity
Brands must be clear about what they serve and why. Complexity in multi-brand menus often leads to operational inefficiencies and customer confusion.

2.       Local Relevance
Brands that scale too quickly often lose local flavor and community engagement, key factors in repeat visits.

3.       Customer-Facing Innovation
Focusing on back-end efficiencies instead of front-end experiential value results in stagnant traffic.

4.       Consistent Value Perception
Multi-brand groups often use blanket pricing models, which fail to reflect each brand’s unique value proposition.

5.       Brand Voice Integrity
Every successful restaurant has a voice. When multiple brands share corporate teams and marketing infrastructure, that voice is often lost.

6.       Operational Agility
Founders adapt quickly. Holding companies move slowly, especially when trying to standardize across distinct brands.

 

Are They Buying Restaurant Concepts or Restaurant Locations?

Here lies the pivotal question:
Are multi-brand companies acquiring culinary concepts or just acquiring real estate footprints?

Too often, deals are made based on the number of units rather than the strength of the concept. This leads to:

·       Retrofitting failing menus into popular formats,

·       Diluting brand identity to fit into multi-unit management structures,

·       Ignoring what made the brand successful in the first place—its original concept integrity.

 

Four Commonalities Multi-Brand Companies Share

1.       Centralized Leadership Without Brand Intimacy
Executives often have limited day-to-day experience with individual brand dynamics.

2.       Over-Reliance on Data, Under-Reliance on Instinct
Decisions are made by spreadsheets, not seasoned operators with customer intimacy.

3.       Acquisition Addiction
Growth is pursued through acquisition rather than organic innovation.

4.       Stalled Menu Innovation
Brands stagnate as culinary creativity is channeled through a corporate filter.

 

Five Things They Must Do to Succeed—Historically Grounded

1.       Return to Brand Founder's Vision
Look back at what made the brand successful at inception. Restore those values before scaling further.

2.       Empower Decentralized Brand Leadership
Let each brand have its own team, budget, and cultural identity to preserve uniqueness and drive innovation.

3.       Embrace Channel Blending (Grocerant Strategy)
As the Grocerant Guru® highlights, today’s consumers shop across platforms—grocery stores, delivery, c-stores, and dine-in. Brands must adapt by offering food where customers are.

4.       Leverage Technology for Customization, Not Uniformity
Use AI and customer data to create unique experiences per brand—not to enforce uniform processes across brands.

5.       Invest in Culinary-Led Growth
Stop relying on M&A and start hiring chefs, food anthropologists, and customer experience designers to breathe life back into menus and formats.

 

Think About This

Multi-brand restaurant companies fail when they become portfolio managers instead of brand stewards. The lessons of the past—from the first golden era of QSRs in the 1960s to the rise of fast casual in the 2000s—tell us that brand clarity, customer relevance, and operational excellence cannot be manufactured at scale without local and cultural context.

To echo the Grocerant Guru®: “Success in foodservice is no longer about serving food; it’s about serving relevance—where, when, and how the consumer wants it.”

Unless multi-brand restaurant operators re-anchor their strategies in these timeless truths, they will continue to struggle—no matter how many locations they acquire.

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Hard to believe but Restaurant Customers Want to Read the Menu

 

Restaurant drive thru, convenience store, or grocery deli when customers are looking for dinner more often than not, they are looking for Ready-2-Eat and Heat-N-Eat fresh prepared food according to Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  In an era of abundant culinary choices, understanding what drives Americans' dining decisions is important for both businesses and consumers. So, we ask are Americans paralyzed by indecision when it comes to dining out? What drives their choices when it comes to where to eat? 

It’s not always easy choosing where to eat, as Americans take an average of 14 minutes to decide. With so many restaurants out there, the decision factors include a restaurant’s location, the cost of food, and diner habits. 

Diners also say the reputation of a restaurant matters, with 76% oAccording to a new study by US Foods, 79% of Americans can’t decide what to order and spend about 9 minutes figuring out what they want to eat once seated at a restaurant. Why is it tough? For 54%, there are just too many meal options. 

·         68% prefer menus to list all ingredients of a dish

·         51% of diners say QR code menus slow down the ordering process 

·         Americans are willing to spend $44 on a meal for themselves of Americans looking at reviews before eating there. 2 in 5 also say they look up a restaurant’s social media profiles before dining out.

Take a look at the full report, which includes additional insights into American menu preferences and ordering habits.

The choice of where to dine can be daunting for hungry consumers. But, how do Americans decide where to eat and what menu items to order amid seemingly endless options? In a recent survey conducted on a sample of over 1,000 Americans, US Foods^® sought to uncover the fascinating secrets behind American diners' menu choices.

HOW DO AMERICANS DECIDE WHAT TO ORDER?

When it comes to dining out, 79% of Americans grapple with the dilemma of choosing what to order. On average, Americans invest 9 minutes figuring out what they want to eat once they're seated at a restaurant.

Where does the difficulty in ordering primarily come from? For 54% of American diners, they can’t decide between the abundance of options. For nearly 1 in 4, it’s due to their pickiness; and for another 23%, they are indifferent, or have no problem choosing.

When it comes to making dining decisions, it's clear that information is key. The majority of Americans (83%) review a restaurant's menu before setting foot inside, and half of those who do (50%) have already decided what they'll order before arriving. Another 2 in 5 look up a restaurant’s social media profiles before dining there.

AMERICANS' MENU PREFERENCES

On a menu, transparency matters, as 68% prefer menus to list all ingredients of a dish. Additionally, 65% of diners say attractive menus impact their ordering decisions. Key menu factors for American diners include item descriptions (65%) and pricing (64%). Clear pricing is crucial, with 9 in 10 considering it when ordering. Americans are also willing to spend $44 on a meal for themselves when dining out.

Food pictures on a menu influence the order decisions of nearly 3 in 4 diners, and 66% have specifically not ordered something based solely on its picture. The majority (72%) of diners also prefer menus with pictures of food, versus menus without images.

QR CODE MENUS VS. PHYSICAL MENUS

While QR code menus in restaurants have gained popularity since the onset of the COVID-19 pandemic, nearly 1 in 6 diners don't know how to use them. An overwhelming majority, 89%, say they prefer physical menus to QR codes, and 95% believe physical menus should always be available. Only 1 in 6 diners find QR code menus to be more convenient than traditional menus, but 51% of diners say they slow down the overall ordering process.

In terms of information quality, 86% find the physical menu easier to read for dish descriptions and ingredients. The majority (87%) also add that they spend more time exploring a physical menu versus a QR code menu.

NUTRITIONAL VALUE AND MENUS

The nutritional value of meals is a key factor for 58% of diners when choosing what to order. More than half (53%) prefer calories to be listed on menus, and 54% say that listed calorie count influences what they order. Over 1 in 6 have asked restaurants for additional nutritional information when it wasn’t available on a menu.

Portion size also matters, with 78% considering it when dining out and 74% saying it impacts their decision when ordering. Factors influencing portion choices include hunger levels (53%), cost (52%), leftovers (43%), cravings (31%), and dietary goals (28%). Most notably, 57% are more likely to order if a dish has a large portion size, reinforcing the importance of serving size. Nearly 3 in 4 believe restaurants should list portion sizes for better transparency.

HOW AMERICANS DECIDE WHERE TO GO TO DINNER

When asked the age-old question, "What do you want for dinner?" Americans, on average, take around 12 minutes to provide an answer. It's clear that, for 82% of diners, the convenience factor is a significant player in their ultimate dining choices.

On average, Americans invest 14 minutes in selecting a restaurant for their meal. As for the question of where to eat, location and cost are the top influencing factors, with 73% considering a restaurant’s proximity and 72% minding their budget.

When it comes to deciding between breakfast, lunch, and dinner; for 1 in 4 Americans, dinner is the hardest meal in deciding what to eat.

HOW DO RESTAURANT REVIEWS IMPACT DINERS’ DECISIONS?

It’s clear the reputation of an establishment matters. More than a quarter (76%) look at restaurant reviews before heading out to eat, and for nearly 80% of diners, these reviews significantly influence their choice of dining establishment.

The visual impact of reviews also plays a significant role, as 84% prefer when customers include pictures of food in their reviews. When it comes to bad reviews and photos, opinions vary, with 28% saying that “five” is the magic number when deciding to stay away from a restaurant. More than half (59%) say that if a restaurant has five or more bad pictures or reviews, it would deter them from dining there.

DINING AND RELATIONSHIPS

When it comes to eating out at restaurants with your significant other, almost 1 in 4 diners in a relationship confess to being the “picky eater.” Nearly 1 in 5 points the finger at their partner in the eternal battle of picky eaters. Yet, varying preferences around food and restaurants are common, with more than 1 in 10 respondents revealing that picky eating creates friction in their partnerships.

More than 1 in 5 couples (21%) have different opinions over where or what to eat. When it comes to ordering at restaurants, 29% opt for a 50/50 split of food, 65% allow their partner to try their dish only if they ask, and 6% keep the meal all for themselves (no sharing allowed).

At least the decision-making tends to be mutual, with 82% of diners saying they discuss the restaurant with their partner when deciding where to eat. And nearly 3 in 5 couples share their meals once they’ve decided what (and where) to eat.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter