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Today we were at Chili’s with our family.
Chili’s is owned by Brinker’s International. (EAT)
The ticker symbol is EAT.
That makes me hungry!
Brinker has about 1,6000 Chili’s restaurants.
And about 50 Maggiano’s restaurants.
Chili’s had their Investor’s Day last Thursday June 9th.
They announced that they will replace their My Chili’s Rewards loyalty program with a Plenti rewards partnership.
They were spending too many marketing dollars with the My Chilis Rewards program to reward current behavior of their 5 million loyalty members.
Being a part of Plenti’s loyalty program will free up marketing dollars to promote their new initiatives like Hand-Crafted Burgers, which will be introduces next month.
One of their new burgers will be the Sunrise Burger with a fried egg in it.
That’s a lot of protein!
In July they will also introduce a new Happy Hour Menu.
Certain appetizers will cost either $3, $4 or $5.
They will also be making changes to generate more revenue from their bar.
Currently 14% of their revenue comes from the bar.
Compare that to T.G.I. Friday’s, which gets 21% of their revenue from the bar.
Chili’s has a great value proposition.
40% of their diners have children under 17 years old.
We fall into that category!
Currently 20% of their customers order from the “2 for $20” Menu.
30% of their customers order some type of menu deal.
Chili’s offers Kids Eat Free promotions as well as a Weekday Lunch Combo for either $6, $7 or $8.
We’re excited to see these new changes next month.
Which should help profits at Brinker’s.
Brinker’s reports earnings August 11th.
Hopefully they will address the effectiveness of these changes on the conference call.
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