Popular Italian restaurant chain to steal Chilli's playbook to copy its astounding turnaround
A struggling Italian restaurant chain is taking a page from Chili’s turnaround playbook in a bid to revive its fortunes.
Maggiano's Little Italy, once a go-to for casual family dining, has fallen out of fashion with customers dropping for the last two years.
The chain, with 53 locations across 20 states, is owned by Chili's parent company Brinker.
Chili’s, under CEO Kevin Hochman, has staged an impressive comeback by cutting discounts, streamlining its menu, and doubling down on its best-selling items like its burgers and chicken tenders.
The strategy has paid off — same-store sales jumped 30 percent last quarter, and Chili’s stock has soared nearly 200 percent over the past year. ar.
Now Maggiano's, first founded in Chicago in 1991, has begun its own revamp, using finer ingredients for its bestselling pastas and meatballs and has cut 17 prep steps to free up 80 hours of kitchen time a week.
The chain has also slashed eight dishes from its menu, including the $6 take-home pastas previously available with the purchase of any entree.
The new menu now includes chicken parmesan, Wagyu beef meatballs and three pastas: Wagyu stuffed shells, lasagna and fettuccine alfredo.
Maggiano's Little Italy, once a casual-dining favorite for families, has fallen out of fashion
The new prices, ranging from $15.50 to $27.50, are designed to reflect the polished-casual offering but with dishes that could be found at a fine-dining restaurant.
The average check at Maggiano's comes to more than $32, compared to around $19 at Chili's, according to Technomic data.
Much like Chili's the turnaround efforts are being implemented by a new leadership team.
Dominique Bertolone was brought on as President of the brand in late 2023 after heading food and beverage at MGM Resorts.
Ernest Perez recently made VP of operations is a former Chili's executive, and Mike Wesley VP of marketing worked alongside Hochman at Yum Brands for 14 years.
'By incorporating the highest quality ingredients – like Wagyu beef and aged, imported Italian cheese – we're proving that high-end dining doesn't have to be out of reach,' Bertolone said of the new menu.
'I'm excited about the brand's plans and the progress the team is already making,' Hochman told analysts on a recent earnings call.
Chili's ability to tap in to the inflation-weary customer's desire for good food at a value price, even competing with fast-food chain's, has been a large part of its turnaround success.
Maggiano's, first founded in Chicago in 1991, has begun its own revamp
Brinker International CEO Kevin Hochman is trying to emulate the turnaround at Chili's
The new simplified menu places renewed attention on the restaurant's best-selling items
'While we started growing sales immediately during the Chili's turnaround, it did take five quarters to start turning traffic trends, and it took seven quarters to turn positive on traffic,' Hochman cautioned.
'That should give you some type of guide on what we're expecting from Maggiano's.'
As Chili' basks in its success, other restaurant chains are filing for bankruptcy and struggling to get people through the door.
Earlier today rival Darden Restaurants revealed weaker sales than expected with Olive Garden and LongHorn Steakhouse both underperforming.
It comes despite an expected boost from the rollout of Olive Garden's at-home delivery partnership with Uber.
Bosses blamed bad weather keeping customers at home, and told investors the quarter was likely a blip rather than a symptom of underlying problems.
