Key Takeaways:
Chili's owner Brinker International chose restaurant Wi-Fi and iPads over AI chatbots — and the stock gained more than 500%.
Brinker International Chief Information Officer Chris Caldwell spent two years overhauling Wi-Fi networks across 1,200 Chili's restaurants and purchasing 23,000 iPads for servers, prioritizing foundational technology over artificial intelligence as part of a turnaround that lifted the stock more than 500% since June 2022.
"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," Caldwell said, describing the chain's selective approach to technology investment.
The overhaul included replacing Wi-Fi access points chainwide, renegotiating a Comcast contract, adding cellular backup, and running new fiber lines into restaurants with poor connectivity. Caldwell purchased 1,200 laptops for store managers who had been reliant on overloaded desktop systems and added 9,000 kitchen touch screens to simplify order prioritization for cooks. The investments contributed to 20 consecutive quarters of same-store sales growth and higher guest satisfaction scores, Caldwell said.
The strategy contrasts with the restaurant industry's broader push toward AI-powered automation. Caldwell said Brinker's leadership team brainstormed several dozen possible AI use cases but found only six or seven worth pursuing, focusing on areas such as inventory forecasting and replenishment. "I truthfully will probably cut more than we proceed forward with," he said. "I don't expect it to be the Wild West of AI."
Caldwell said he introduced a governance team that reviews new AI requests monthly and continually reevaluates use cases previously rejected. He said he is far from sold on using AI to take orders over the phone, arguing it would lead to customer frustration rather than an improved experience. "Our lens is: does it give our customers an amazing experience?" he said.
The approach has drawn support from analysts. "The Chili's turnaround has been nothing short of remarkable," said Sara Senatore, senior restaurants analyst at Bank of America. Forrester retail analyst Sucharita Kodali said she has not yet seen a game-changing generative AI use case in the restaurant space, adding that some customer-facing AI chatbots are deployed more for "ticking a box" than driving real value.
Brinker's strategy reflects a broader tension in enterprise AI adoption. While companies across industries race to deploy generative AI tools, many chief information officers face pressure to show returns on technology spending. Caldwell's approach — invest in infrastructure first, experiment with AI selectively — offers a counterpoint to the narrative that every business must go all in on AI or risk being left behind. Brinker shares, which trade at about 22 times forward earnings, have added roughly $6 billion in market value since Hochman took over in June 2022, according to data compiled by Bloomberg.
This article is for informational purposes only and does not constitute investment advice.
