Chili's Gearing up for Battle with Taco Bell

Dow Jones
Sep 17

Chili's went after fast-food burgers, and now it wants to take a bite out of to-go Mexican.

Executives from Chili's parent Brinker International said Thursday that the chain plans on developing new spins on tacos and quesadillas. The offerings could include Chili's improved chicken tenders, steak or spicy mayo, executives said.

A stand-out in the challenged casual-dining sector, Chili's in 2024 started an aggressive campaign against fast-food burger players, particularly targeting McDonald's. Chili's advertised its burgers starting at $10.99 with fries, a drink and unlimited chips as a better deal than the Quarter Pounder or Big Mac.

The new push from Chili's brings more competition to Taco Bell, which has been struggling with a sharp decline in sales since its lettuce was linked to an outbreak of cyclospora-related illnesses.

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