[BreachExchange] Chili's restaurants were hit by a data breach, compromising customer credit card information

Inga Goddijn inga at riskbasedsecurity.com
Mon May 14 09:22:12 EDT 2018


http://www.businessinsider.com/chilis-data-breach-2018-5

Tex-Mex restaurant chain Chili's
<http://www.businessinsider.com/category/chilis> is the latest retailer to
be impacted by a data breach.

On Saturday, its parent company Brinkler International announced that
customer credit and debit card information had been "compromised" in
certain Chili's restaurants. It confirmed that no personal data such as
social security numbers or dates of birth was breached since it doesn't
collect this information.

The company made the announcement one day after it said it discovered the
breach.

It has not yet confirmed how many people have been impacted, but the
company said in a statement that it believes the breach was limited between
March and April 2018. It's advising customers to monitor bank statements
for strange transactions during that period.

Chili's joins a long list of retailers
<http://www.businessinsider.com/data-breaches-2018-4>— including Sears,
Kmart, Whole Foods, and Under Armour — that have been impacted by a data
breach in the past year. The majority of the retailers that experienced a
breach have not confirmed exactly how many customers were impacted.

Breaches have huge repercussions, often resulting in customers losing trust
in the brands. According
<http://e.businessinsider.com/click/11780552.1435/aHR0cHM6Ly93d3cucHJuZXdzd2lyZS5jb20vbmV3cy1yZWxlYXNlcy9jeWJlci1hdHRhY2tzLWNvdWxkLWNvc3QtcmV0YWlsZXJzLW9uZS1maWZ0aC1vZi10aGVpci1zaG9wcGVycy1rcG1nLXN0dWR5LTMwMDMxNjUyMC5odG1s/56378b5356cf60046a8b4ca0B44df57c5>
to a study from KPMG, 19% percent of consumers said they would stop
shopping at a breached retailer, and 33% would take a long-term break.

This is bad news for Chili's as it has suffered from weak sales since 2008
<https://www.thestreet.com/story/14297960/1/chili-s-to-trim-40-of-its-menu-as-casual-dining-pressures-persist.html>.
In its most recent quarterly results, Brinkler reported that same-store
sales at the location it owns fell by 0.4%. At its franchise restaurants,
same-store sales fell by 3.2%.
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