Chili's replaces iconic quesos with new Southwest Queso to attract customers

In response to changing consumer preferences, American restaurant chain Chili's has announced a significant shift in its menu by replacing the Skillet Beef Queso and White Queso with a new Southwest Queso. This change, which will take effect on October 7, 2025, comes after consumer testing revealed that nearly 70 percent of participants preferred the Southwest Queso over the outgoing options. The Skillet Beef Queso had been a staple on the menu for 35 years but had been losing popularity, accounting for less than 1 percent of sales. The decision was made as part of a larger strategy to remain relevant in a competitive dining environment where many consumers are cutting back on dining out due to financial considerations. The introduction of the Southwest Queso aims to attract both new and returning customers, enhancing the restaurant's appeal by offering a vegetarian option made with American cheese, cheddar cheese, fire-roasted green chiles, onions, and lime, served with signature tortilla chips. The move comes amid a larger trend of restaurants updating their menus due to the economic pressures faced by many diners. Chili's, alongside other brands like Papa John's and Starbucks, has been forced to innovate to maintain customer interest and drive sales. With inflation affecting spending habits, the restaurant hopes that introducing new, appealing items will encourage guests to choose dining out over cooking at home. The Southwest Queso is not only positioned as an appetizer but also features prominently in various dishes offered by the restaurant, including the Dip Trio and as a topping for Chicken Bacon Ranch Nachos. Members of Chili's rewards program will have the opportunity to try the new queso for free, limited to one per member, from October 7 to October 21, which is a strategic move to engage loyal customers. This promotional tactic aligns with industry practices where restaurants leverage new menu items or promotions to boost engagement and sales during challenging economic times. Overall, the introduction of the Southwest Queso represents a calculated risk by Chili's to revitalize its menu and enhance customer satisfaction. By moving away from less popular items and focusing on quality, flavorful options, the restaurant aims to recover foot traffic and reinforce its brand in a competitive market.