Main competitor Chili’s is recording double-digit growth.
Much of the restaurant industry has struggled as consumers cut spending.
At one point, the former main competitor folded and closed hundreds of restaurants.
Chili’s has discovered magic.
While competing restaurants, and indeed much of the restaurant industry, are struggling, the chain made famous by short ribs (and the song that goes with them) is seeing steady sales growth.
The casual restaurant chain, owned by Brinkers International, continues to show that it has come up with a winning formula.
“The company’s comparable restaurant sales increased 21.3%, including 23.7% at Chili’s. Chili’s sales growth this quarter was primarily driven by continued traffic growth, supported by menu innovations and advertising that highlights our industry-leading value and encourages guests to try,” the company shared in its fourth quarter earnings press release.
CEO Kevin Hochman noted this in his remarks.
“Chili’s delivered another strong quarter with +24% sales driven by +16% traffic. We now achieved Q4 2-year sales growth of +39% and three-year +45% growth. We are confident we can increase sales and traffic through fiscal 2026.”
While Chili’s has thrived, one of its closest competitors, Ruby Tuesday, has been in steady decline as more and more restaurants close each year.
The menus at Chili’s and Ruby Tuesday are quite similar. But only Chili’s doubled in value, an effort that was very clear to both current and legacy customers.
Chili’s has invested heavily in promoting its 3 for Me menu, which offers customers an appetizer, entree and non-alcoholic beverage starting at $10.99. It stepped up its efforts this week with a new Big Smasher burger designed to compete with McDonald’s Big Mac. It also launched a new advertisement for the fast food restaurant Chillateli, which compares TV values. shared.
The value transfer helped Chili’s outperform competitor Applebee’s in sales.
“A combination of value-based marketing, social media buzz and improved restaurant operations have helped Chili’s achieve its strongest sales in more than a decade,” noted the Technomic Top 500, Nation’s Restaurant News reported.
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Ruby Two doesn’t advertise nearly as much as Chili’s and mostly keeps its ads to digital.
“Ruby Two is part of NRD Capital Management. They have spent less than $100 million on digital and national TV advertising in the past year. They invest in premium ad sets and have advertised on less than 50 different media properties in a variety of media formats in the past year. Ruby Tuesday last advertised a new product in October 2024,” Media Radar data shows.
Ruby Tuesday has been steadily declining for years.” loading=”lazy” height=”539″ width=”960″ class=”yf-1gfnohs loader”/>
Ruby Tuesday has been steadily declining for years.
in 2016 August: Ruby Tuesday Inc. announced that it would to close about 95 underperforming company restaurants (15% of its chain) until September. Source: Nation’s Restaurant News.
in 2020 May: Reports indicate that Rubin’s Tuesday has quietly closed more than 150 places since January of the same year, during the pandemic. Source: Business Insider
in 2020 Oct. 7: The company filed for Chapter 11 bankruptcy and announced it will close permanently 185 restaurants which was closed during the pandemic, leaving around 236 operating locations. Source: PacerMonitor
in 2021 February 24: Ruby Tuesday went bankrupt with approx 209 restaurants left to work.
in 2025 January: A particular location at the Meriden Mall in Connecticut closed permanently, leaving only two Ruby Two locations in Connecticut. Source: CT Insider
in 2025 November 4: The Presque Isle, Maine, location has closed permanently, marking another closure in the chain’s ongoing downsizing. Source: bangordailynews.com
Timeline of Ruby Tuesday locations over the years:
in 1985: 35 restaurants.
The beginning of the 1990s: Rapid expansion from shopping centers to individual locations.
in 2004: about 700 restaurants (company-owned and franchised).
2009 (peak): about 945 seats.
in 2011: 736 locations (658 corporate, 29 domestic franchises, 49 international franchises) in 43 US states and 13 foreign countries.
in 2020 (before bankruptcy): Permanent closures announced for 185 restaurants closed since the pandemic.
in 2021 in February: After the bankruptcy, the chain is down to 209 locations.
in 2025 in October: About 204 seats left in 29 states. Source: scrapehero.com
This story was originally reported by TheStreet in 2025. on November 5, where it first appeared in the restaurants section. Add TheStreet as a preferred source by clicking here.
