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Chili’s has thrown down the gauntlet to fast food giant McDonald’s with its new Big Smasher burger. And the word on the street is that it seems to be working.
The Big Smasher, boasting “twice the beef of a Big Mac” and a familiar flavors, has been a major hit. In fact, it’s been credited with a significant boost in Chili’s sales and foot traffic (almost 15%). And the move most importantly, has taken customers away from McDonald’s.
Why is Chili’s Winning?
Several factors are contributing to Chili’s success in this burger battle:
• Price Point: While McDonald’s is known for its affordability, Chili’s has managed to position the Big Smasher as a value proposition. Offering a larger, more premium burger at a competitive price is a winning strategy.
• Flavor: Chili’s has cleverly replicated the classic Big Mac taste, appealing to a wide audience. This familiarity combined with the added value of a larger burger is a powerful combination.
• Dining Experience: Let’s face it, sitting down to a meal at a restaurant offers a different experience than grabbing food on the go. Chili’s is capitalizing on this by providing a more leisurely dining atmosphere.
• Targeted Marketing: Chili’s has been savvy in its marketing, directly comparing the Big Smasher to the Big Mac and highlighting the perceived shortcomings of fast food. The commercials started to air in April, taking direct jabs at the clown helmed fast food chain.
During the most recent earnings call, Brinker CEO Kevin Hochman said: “(they have )been successful in driving traffic and tapping into the cultural conversation about fast food prices. And significantly outperformed the industry in both sales and traffic during the quarter.”
A New Era of Competition
The success of the Big Smasher is a clear indication that the lines between fast food and casual dining are now blurring. Consumers are increasingly seeking value, quality, and experience, and restaurants are responding.
The biggest problem the fast food industry is facing are increased prices. A $10 burger at McDonald’s or Wendy’s looks a lot different than a $10 burger from Chili’s and similar sit-down restaurants. The latter comes with fries and a drink and service to boot. It’s a no-brainer.
While McDonald’s remains a formidable competitor, Chili’s has shown that with the right strategy, it’s possible to challenge even the biggest players in the industry. Will other casual dining chains follow suit? Only time will tell.
What are your thoughts on the Big Smasher? Do you think it’s a real threat to McDonald’s?
