Chili’s and Applebee’s are fighting about their value meals
By Jordan Valinsky, CNN
New York (CNN) — There’s beef cooking between two of the biggest restaurant chains over their respective meal deals.
In one corner is Applebee’s, which recently launched a $9.99 “Really Big Meal Deal,” and on the other side is Chili’s, home of the $10.99 promotion that has proven to be a big hit. Both chains have added more value offerings to menus in recent months as consumers cut back on dining out amid inflationary pressure on their wallets.
The fight between the two is garnering attention on X, where Applebee’s implied that its deal is better than Chili’s offering because it’s $1 cheaper. Applebee’s deal also includes either a fried chicken sandwich or bacon cheeseburger, fries and a soda.
Despite not tagging or directly naming Chili’s, it took notice and clapped back, responding “@ us next time,” noting that its own deal comes with unlimited chips and salsa. The message ended with “y’all could literally never.”
Accounts on X appeared to mostly side with Chili’s, which has a larger following and a snarkier presence, with one user posting “only $1 more to avoid Applebees is priceless.” Meanwhile, Chili’s denied the two chains were fighting, replying that they were “just chatting.”
Applebee’s X account hasn’t responded to Chili’s (and its corporate parent didn’t immediately respond to CNN’s request for comment.)
In a statement to CNN, Chili’s Chief Marketing Officer George Felix said it’s “no secret that we like to have a little fun on our social channels, and we are extremely passionate about making sure our guests are truly getting the best value in casual dining.”
Chili’s sizzles, Applebee’s struggles
Chili’s and Applebee’s have long been rivals, with their restaurants dotting large swaths of America suburbia and often battling each other with special meals and deals. But in the past few years, Chili’s has flourished while Applebee’s has struggled.
Chili’s has added several meal deals, including a $10.99 “3 for Me” deal and expanded it to include a McDonald’s Big Mac-like burger that took aim at people’s frustration over fast food pricing getting out of control.
In addition, their Triple Dipper appetizers has grabbed the attention of TikTok and accounts for 11% of Chili’s business. That helped the chain post a 14% jump in same-store sales in its most recent quarter, and the stock of its parent company, Brinker (EAT), has seen its stock soar more than 200% for the year.
It’s been a different story for Applebee’s. The chain generated slightly more annual revenue despite having more locations than Chili’s, according to Technomic data.
Applebee’s same-store sales slumped about 6% in its most recent quarter, marking the sixth straight quarter of decline. Shares of Dine Brands (DIN), which owns the chain in addition to IHOP, have fallen 35% for the year.
Targeted promotions, like $1 margaritas and $0.50 wings, stopped working, and the company said that customers wanted to know the total cost of a meal. In response, Applebee’s finally launched the $9.99 limited time deal in November.
The company also is shifting its menu to “more full meal value offers” and will “continue to evolve our value propositions to keep our guests engaged,” John Peyton, Dine Brands’ CEO, said on last month’s earnings call.
The new deal appears to be working for Applebee’s. Foot traffic grew 2% in November after declining 9% in October, according to data from analytics firm Placer.ai. Meanwhile, Chili’s foot traffic soared 33%, capping off six straight months of increases.
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