This Struggling Restaurant Chain Went Back to the Basics. Now Its Stock Is Up 500% in 4 Years: ‘Nothing Short of Remarkable’
Instead of focusing on AI, this chain is fixing its foundation.
Key Takeaways
- Chili鈥檚 parent company, Brinker International, is focusing on core restaurant tech upgrades before aggressively pursuing AI.
- Brinker International CIO Chris Caldwell recently said that the chain is 鈥渘ot all in鈥 on AI, choosing to prioritize foundational systems instead.
- His investments over the past two years have gone into fixing basic issues that were degrading both customer and employee experience, such as better Wi-Fi, new tablets and new laptops.
In a time when companies are touting ways they have used AI to streamline operations, one restaurant chain stands out. Instead of trying to apply AI, this chain has gone back to the basics and fixed its foundations to become more efficient 鈥 and its latest quarterly report shows that the effort is paying off.
According to , chief information officer of Chili鈥檚-owner Brinker International, Chili鈥檚 is 鈥渘ot all in鈥 on AI. Caldwell, who has been in the restaurant tech industry for nearly 30 years, recently told that he has instead used his budget over the past two years to fix cracks in Chili鈥檚 foundation and strengthen its basic technology.
The initiatives include stronger Wi-Fi access, better payment systems and new devices for staff so they can provide better service to customers.
Cutting back on robots
Simultaneously, Caldwell has pulled the plug on what he calls flashy but ultimately pointless initiatives, like . He has also decided to cut back on generative AI applications. Every technology initiative now has to serve the bigger purpose of enhancing food service and atmosphere, he said.
鈥淚f a robot鈥檚 getting in the way and not helping us deliver a great guest experience, we鈥檙e going to get rid of them,鈥 he added.
The technology initiative is part of a broader turnaround effort for Chili鈥檚. Sara Senatore, a senior restaurants analyst at Bank of America, told the Journal that the plan has been successful: The company鈥檚 stock has risen more than 500% since June 2022. 鈥淭he Chili鈥檚 turnaround has been nothing short of remarkable,鈥 Senatore said.
According to Brinker International鈥檚 for the third quarter ending March 25, Chili鈥檚 restaurant sales increased 4% when compared to the same period last year. Company sales overall were $1.46 billion, up from $1.41 billion the previous year.
Caldwell decided to invest in the basics
Caldwell told the Journal that when he first arrived at Chili鈥檚 in February 2024, it was evident that the chain had neglected the basics. Poor Wi-Fi, outdated services and confusing ordering software were slowing staff down and hurting service quality.
His priority was fixing the network. Over two years, the company upgraded Wi-Fi in 1,200 locations, renegotiated its Comcast contract, added cellular backup and installed new lines in sites of weakened connectivity.
Caldwell did not disclose how much the project cost, but said that the effort wrapped up earlier this year.
He added that better Wi-Fi set the stage for other tech upgrades in restaurants.
In one early move, he bought 1,200 new laptops 鈥 one for each store manager. Before that, managers had to rely on the same desktop systems overloaded with running back-office operations.
He also bought 23,000 new iPads that staff could use in place of old tablets to take orders. Up until that point, the tablets they used lacked quality battery life and weren鈥檛 functional for an entire shift.
Caldwell said that his investments have contributed to 20 consecutive quarters of same-store sales growth.
Key Takeaways
- Chili鈥檚 parent company, Brinker International, is focusing on core restaurant tech upgrades before aggressively pursuing AI.
- Brinker International CIO Chris Caldwell recently said that the chain is 鈥渘ot all in鈥 on AI, choosing to prioritize foundational systems instead.
- His investments over the past two years have gone into fixing basic issues that were degrading both customer and employee experience, such as better Wi-Fi, new tablets and new laptops.
In a time when companies are touting ways they have used AI to streamline operations, one restaurant chain stands out. Instead of trying to apply AI, this chain has gone back to the basics and fixed its foundations to become more efficient 鈥 and its latest quarterly report shows that the effort is paying off.
According to , chief information officer of Chili鈥檚-owner Brinker International, Chili鈥檚 is 鈥渘ot all in鈥 on AI. Caldwell, who has been in the restaurant tech industry for nearly 30 years, recently told that he has instead used his budget over the past two years to fix cracks in Chili鈥檚 foundation and strengthen its basic technology.
The initiatives include stronger Wi-Fi access, better payment systems and new devices for staff so they can provide better service to customers.
