Chili's Bets on 'Extreme Ownership' to Fuel Growth, Considers GM Equity Model
In a strategic shift aimed at sustaining its recent momentum, Chili's Grill & Bar is developing a program that could see its restaurant general managers gain a more direct financial stake in their locations' success. The move, inspired by the proven models of competitors like Texas Roadhouse and Raising Cane's, seeks to instill what CEO Kevin Hochman calls "extreme ownership" at the store level.
The initiative comes on the heels of Chili's parent company, Brinker International, reporting a nearly 9% increase in same-store sales for its latest quarter, prompting an upward revision of its full-year guidance. Hochman, who began discussing the exploration last year, credits the chain's "staggeringly successful" performance with creating the talent pool and financial stability necessary to pursue such a transformative model.
"Our focus is to invest in making [our managers] more owners of the business," Hochman stated during an October earnings call. "Eventually, that will translate into some changed incentive structures."
The company has already launched the first phase of a multi-year training regimen. Managers are undergoing intensive instruction to master profit-and-loss statements, aided by a new Oracle-based P&L tool. The next phase will involve teaching "the principles of extreme ownership" to operations directors, GMs, and in-restaurant management teams.
Hochman acknowledged studying a "best-in-class competitor"—widely understood to be Texas Roadhouse—noting their mastery of GM ownership and incentive alignment. However, he emphasized that Chili's cannot simply copy another model wholesale, particularly one that relies on a lower base salary with higher variable compensation. "That's not going to be received well," he admitted. "We've got to figure out how to do this in a way that is going to work for everybody."
The company estimates it will take at least one to two years of skill-building before any formal changes to compensation and ownership structures are implemented. The goal is to delegate more decision-making power to the restaurant level, empowering managers to "run it like it's their own business."
Industry Reaction:
"This is a logical, if overdue, step for a brand of Chili's scale. Aligning manager incentives directly with unit performance is Restaurant Management 101. The companies that do it well, like the ones Hochman name-checked, consistently outperform on customer service and operational excellence." — Marcus Thorne, Restaurant Consultant and former multi-unit franchisee.
"Finally! Treating GMs like cost-center managers instead of partners is why so many chain restaurants feel soulless. If they get this right, it could dramatically improve morale and reduce turnover. The training is key—you can't just hand someone equity and call it a day." — Daniela Ruiz, Host of the Front of House podcast.
"A 'couple of years' of training? This reeks of corporate indecision. They're admitting their competitors have a better system but are too timid to implement it. In the meantime, they'll lose their best GMs to brands that offer real ownership today, not a vague promise for 2026." — Gregory Shaw, Industry Analyst at Shaw Hospitality Group.
"The challenge is in the details. Structuring equity in a publicly traded company for unit-level managers is complex. If they can create a clear, fair path to ownership without cannibalizing base pay, it could be a game-changer for attracting and retaining top-tier operational talent." — Priya Chen, Professor of Hospitality Management, Ellington University.
Contact: Alicia Kelso at [email protected] | Follow her on TikTok: @aliciakelso