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Brinker International: Pay-at-the-table technology improves dining
Alabama

Brinker International: Pay-at-the-table technology improves dining

Brinker International has found that its investments in digital tools have improved the experience for both customers and employees at its casual dining restaurants.

These improvements have also contributed to the company’s continued profitable and sustainable growth, executives of Brinker International, the owner of Chili’s and Maggiano’s, said Wednesday (August 14) during the company’s quarterly earnings conference call.

“As we return our focus to our fundamentals, technology is now working harder than ever for our Chili’s managers, and there is still plenty of room for upside,” said Kevin Hochman, CEO and President of Brinker International, during the conference call.

Hochman said the company’s investments included replacing legacy table-side payment technology with new technology that offers greater reliability and usage; improving handheld ordering tablets at servers to reduce error rates from 5% two years ago to less than 1% today; and implementing an artificial intelligence (AI)-based work time forecasting system that helped managers create work schedules faster and more accurately.

New restaurant technology, along with other operational improvements and investments in labor and facilities, have helped the percentage of guests reporting a problem drop from 5% two years ago to 2.7% today – the lowest the company has ever seen – and Google ratings have improved to an all-time high, Hochman said.

In another attempt to streamline operations, Brinker International plans to eliminate curbside service. Hochman said the curbside offering has caused friction for employees.

At the same time, the company plans to improve its out-of-home business by increasing order accuracy and introducing packaging that keeps food warm and fresh.

During the conference call, the company also addressed consumer frustration with fast food prices. In response to those concerns, Hochman said the company’s offering of a nearly half-pound burger, unlimited chips and salsa, and unlimited drinks for $10.99 “continues to be an industry-leading offering that we believe it is, and it continues to work.”

The company also now offers a clear “good, better, best” margarita line to appeal to consumers looking for a great value as well as those willing to spend more for a super-premium brand.

“Our job is to make sure we offer products to all of our guests in the core segments we want to win,” Hochman said. “By balancing price points, we can provide great value every day while keeping food costs low and increasing operating margins.”

Brinker International’s sales remained strong for the quarter to date, albeit at more sustainable levels, at a time when sales across the restaurant industry declined in July due to “turbulent macroeconomics,” Chief Financial Officer Mika Ware said during the conference call.

“While we are pleased with the performance of our business and confident in our plans – that our plans will enable us to continue to significantly outperform the industry in terms of revenue and traffic – we are also conscious of what we are seeing in the industry and on a macroeconomic level,” Ware said. “While we are not experiencing the same weakness as others today, we have factored the macroeconomic aspects into our forecast.”

PYMNTS-MonitorEdge-May-2024

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