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

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.

The technology initiative is part of a broader turnaround effort for Chili’s. Sara Senatore, a senior restaurants analyst at Bank of America, told the Journal that the plan has been successful: The company’s stock has risen more than 500% since June 2022. “The Chili’s turnaround has been nothing short of remarkable,” Senatore said.

According to Brinker International’s latest financial results for the third quarter ending March 25, Chili’s 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’s 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 Poor Wi-Fi, outdated services and confusing ordering software were slowing staff down and hurting service quality.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 — 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’t functional for an entire shift. 

Caldwell said that his investments have contributed to 20 consecutive quarters of same-store sales growth.