Chili's Big Mac Competitor Is Going Out of Business as McDonald's Struggles

Chili's is introducing a menu item that it bills as a “homage” to the McDonald's Big Mac, and CNN The Tex-Mex chain is reportedly seeing a boost in business. With “twice the meat” and about ⅓ the price, Chili's Big Smasher Burger could beat the Golden Arches.

The Big Smasher Burger was introduced in April as part of Chili's 3 For Me meal deal. The deal was positioned as a direct competitor to the ever-increasing prices of fast food, allowing customers to choose an appetizer, entrée, and drink for just $10.99. Much like the Big Mac, the Chili's Big Smasher is made with diced red onion, shredded lettuce, pickles, cheese, and Thousand Island dressing. Unlike the McDonald's offering, it has only one larger, juicier beef patty instead of two thin patties. It also doesn't have an additional middle bun like the Big Mac.

“Or, you could just get any burger at a drive-thru,” the narrator says as a thin, dry-looking burger that looks a lot like a Big Mac enters the frame.

The copycat burger has been a huge success, even beating McDonald’s at its own game. Chili’s parent company Brinker International reported a nearly 15% increase in in-store sales and a nearly 6% increase in foot traffic in the latest quarter, thanks in large part to the 3 For Me promotion.

Leading up to the April announcement, Chili's had been following social media conversations and inferring that customers were “tired of fast food prices,” Brinker CEO Kevin Hochman said on an earnings call that month. That led the chain to “use fast food as a foil.”

Hochman confirmed in the Aug. 14 earnings call that Chili's “significantly outperformed the industry in both sales and traffic in the quarter.” Fast food giants like Burger King, Wendy's and especially McDonald's have performed poorly in recent quarters despite offering their own value options.

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

Hochman confirmed that the 3 For Me deal will continue for at least the rest of the year because it “has been successful in driving traffic and contributing to the cultural conversation about fast food prices.”

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