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Chili's: Lighthouse
Menu
Innovation

PROJECT

CLIENT

Chili's

SERVICES

  • CX+
  • Strategy

INDUSTRY

  • Travel & Hospitality

Chili's partnered with Continuum to differentiate from the noise in the casual dining space.

Challenge

Back in 2014, business was solid, but not sizzling, at Chili’s restaurants. Traffic across the casual dining category had been declining for some time and guests were visiting these restaurants less and less frequently—making 1.5 billion fewer annual visits, or a decrease of 2%. Not surprisingly, the decline in the casual dining business coincided with the emergence of the fast casual category and with an evolution of consumer preferences.

How could this nationally known restaurant chain reverse that trend and make their brand more welcoming to today’s customers? We started with the food. At the time, Chili’s had a swelling menu. At the original restaurant, the menu had just 15 items, and 40 years later it had grown significantly.

Chili’s partnered with Continuum to create a new lighthouse menu that would resonate with today’s consumer preferences and Chili’s core brand DNA. We worked with a cross-functional team, including Chili’s finance, culinary, strategic innovation, operations, supply chain, and marketing groups to look at every item on the menu. Our task: to rebuild Chili’s menu with a distinct culinary point of view, one that spoke to the Chili’s brand by highlighting foods that only Chili’s can do best. The key way for a restaurant chain to be more hospitable to patrons is to alter the primary offering. Changing the core menu, we soon saw, could have an enormous potential impact.

“We have partnered with Continuum for several years as Chili’s has pursued both brand relevance and differentiation in a very crowded casual dining category. Continuum has been a great partner in pushing us to think differently with their deep understanding of macro trends and evolving consumer needs. Continuum turns their recommended strategic vision into playbooks and frameworks that provide clarity and direction for the activation. It’s the magical intersection of insights and strategy and implementation plans that make their work so invaluable.”

Kelli Valade
President, Chili's

Research & Insights

A Menu of One’s Own

Many restaurants feature “America’s Favorites”—but few actually differentiate themselves and create something unique and ownable. We helped Chili’s define menu platforms that the company could own and innovate. To do so, we looked back at Chili’s rich heritage for inspiration.

Engineering a New Flavor DNA

Once we understood the platforms to use, we worked with the culinary and supply chain teams to build a new flavor DNA. We identified flavors Chili’s could claim, as well as new complementary flavor profiles that would resonate with contemporary diners. We also recommended more experiential menu items, such as tableside guacamole service and handcrafted cocktails.

New Food, New Process

Over the course of our research, we recognized the need to create a new innovation process for Chili’s. We sought to give the culinary and marketing teams the means to make their process repeatable and to focus the innovation in the kitchen. Most importantly, we wanted to create a process that would yield items that could be faithfully and repeatedly delivered in the field, in over 1,600 restaurants serving up to 1,000,000 meals per day.

'Tis the Season

Introducing the notion of seasonality to the menu was critical. Communicating seasonal change was an important way to highlight in-season ingredients, to acknowledge that preparations change over time, and to introduce new menu items. Also, seasonality became a strategic way to sunset certain items, which had been a challenge in previous years.

Freshening up the Brand

Continuum’s work involved significant changes to the design language of the menu. For instance, we created new photography and copy guidelines. We advised Chili’s to make their photography look environmental and spatial, so that menu items would be shown in the context in which they were made. Copy was changed to be more descriptive of culinary process, and the specific nature of the ingredients themselves. Certain ingredients—for instance, jicama and poblano peppers—were added strategically to help create a freshness halo for the menu.

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Solution

In partnership with Chili’s, we created a three-year menu innovation roadmap. In time, the restaurant will be adding new items to the menu and, when necessary, removing others. Our plan aims to help both consumers and the culinary team make the three-year transition, with an understanding that these changes have a profound effect on operations in the “heart of house." Through Continuum’s collaboration with Chili’s, we were able to deliver this solution—almost all of these changes—in less than two years.

“In my 25 years of experience in menu development, I’ve never been able to make the amount of progress in such a short time transforming the menu as we have through this partnership with Continuum. Without our new differentiated point of view in Fresh Tex and Fresh Mex, the New School filters, and the Flavor DNA—without that clear vision—we just wouldn’t have been able to do this in less than 3 years.”

Chef Stephen Bulgarelli
VP of Food & Beverage Innovation

Results

The introduction of new primary menu platforms—Fresh Tex and Fresh Mex—has been extremely positive. Sales and traffic have risen, according to a 2018 earnings call. The new slimmed-down menu has, according to Wyman T. Roberts, CEO and President of parent company Brinker International, Inc., enabled Chili's “to deliver hotter food faster and cut our longest ticket times in half.” Roberts adds: “This quarter has been our best year, outperforming the industry on sales and significantly outperforming on traffic.” Brinker reports that first quarter revenues of fiscal 2019 are up: $753.8 million, from $739.4 million, an increase of 1.9%.

Results

From 2014 to 2016, Chili's realized a 27% growth in the menu mix of Fresh Mex and Fresh Tex menu items, calculated together as a percentage of non-beverage menu items ordered. They have seen a per-person average spend increase of $0.45.

Results

A clear indication that the Chili’s lighthouse menu led to an improved culinary experience was reflected in Chili’s Guest Experience Tracker in the Fall of 2015 (Q2 2016). Food scores increased by a net positive increase.

Results

Our culinary innovation reduced the number of ingredient SKUs in the kitchen, therefore simplifying operations in the kitchen.

Results

Tableside guacamole, an example of our more experiential culinary experiences, leads to higher customer satisfaction scores. Following the release of the 2015 Fall menu(Q2 2016), Chili’s hospitality score increased, showing an 8-point net positive change.

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