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This Struggling Restaurant Chain Went Back to the Basics. Now Its Stock Is Up 500% in 4 Years: ‘Nothing Short of Remarkable’

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Why This Matters

Chili’s parent company Brinker International is prioritizing foundational technology upgrades over AI to improve customer and employee experiences. This strategic shift back to basics has resulted in a remarkable 500% stock increase over four years, demonstrating the importance of solid infrastructure in retail success. The approach underscores a broader industry lesson: investing in core systems can be more impactful than chasing flashy tech trends.

Key Takeaways

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Key Takeaways Chili’s 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 “not all in” 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 — and its latest quarterly report shows that the effort is paying off.

According to Chris Caldwell, chief information officer of Chili’s-owner Brinker International, Chili’s is “not all in” on AI. Caldwell, who has been in the restaurant tech industry for nearly 30 years, recently told The Wall Street Journal that he has instead used his budget over the past two years to fix cracks in Chili’s 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 robot servers. 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.

“If a robot’s getting in the way and not helping us deliver a great guest experience, we’re going to get rid of them,” he added.

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