Chili’s Big Mac Competitor Pulls Business as McDonald’s Struggles

Chili’s is offering a menu item billed as a “tribute” to McDonald’s Big Mac, and CNN reported that it’s caused business to surge for the Tex-Mex chain. With “twice the meat” and nearly ⅓ of the price, Chili’s Big Smasher Burger may have the Golden Arches beat.

The Big Smasher Burger launched in April as part of Chili’s 3 For Me meal deal, which was positioned as a direct competitor to ever-rising fast food prices and lets customers choose an appetizer, entree, and beverage for just $10.99. Much like the Big Mac, Chili’s Big Smasher is made with diced red onions, shredded lettuce, pickles, cheese, and Thousand Island dressing. Unlike McDonald’s offering, there is just one larger, juicier beef patty instead of two thinner ones. There’s also no additional middle bun as there is in a Big Mac.

“Or, you could settle for just some other burger at a drive-thru,” the narrator says as a thin, dry-looking burger which closely resembles a Big Mac enters the frame.

The imitation burger has proven a great success and is even beating McDonald’s at its own game. Chili’s parent company, Brinker International, reported a jump of nearly 15 percent for in-store sales and a nearly six percent increase in foot traffic for the most recent quarter, thanks largely to the 3 For Me promotion.

Leading up to the April announcement, Chili’s had tracked social media conversation and deduced that customers were “frustrated by fast food prices,” Brinker CEO Kevin Hochman said during an earnings call that month. It prompted the chain to “use fast food as foil,” in his words.

Hochman confirmed in an August 14 earnings release that Chili’s “significantly outperformed the industry in both sales and traffic during the quarter.” Fast food giants like Burger King, Wendy’s, and most especially McDonald’s suffered fairly dismal recent quarters even after introducing value options of their own.

Of course, the two restaurant chains aren't exactly direct competitors, with Chili's focusing more on sit-down table service while McDonald's is a classic quick-service restaurant (QSR). Still, the juxtaposition is notable. 

Hochman confirmed that the 3 For Me deal would run for at least the rest of this year, as it has “been successful in driving traffic and tapping into the cultural conversation about fast food prices.”