Brinker Partners with Ziosk

Zacks Equity Research
September 18, 2013

Dallas, Texas-based restaurateur Brinker International Inc.’s (EAT) subsidiary Chili’s Grill & Bar (Chili’s) recently partnered with Ziosk, the manufacturer of world’s first pay-at-the table, entertainment and easy-ordering solutions tablet especially designed for the restaurant sector. Per the deal, Chili’s will install Ziosk 7-inch tabletop tablets across all of its 823 company-owned restaurants in the U.S. by the first half of 2014.

The company has received impressive feedback for the experimental rollout of the device at some of its company-owned locations. Hence, it has decided to go ahead with the introduction of the Ziosk touch screen tablets at all its restaurants to boost guest satisfaction. 

This tablet will allow the customers to easily choose food items from Chili’s wide range of menus. Also, the pay-on-demand facility will quicken bill payment. Apart from this, the Ziosk tablet will also offer several entertainment facilities such as video games, music and Facebook for the guests.

Another restaurateur, DineEquity, Inc. (DIN), has also brought Ziosk devices in its Applebee’s Neighborhood Grill and Bar (Applebee's) restaurants.

The use of technological devices is continuously increasing among consumers. In 2012, Technomic carried out a Consumer-Facing Technology Survey which found around 51% consumers voting for digital ordering. Thus, the launch of Ziosk will take Brinker a step forward in using technology-based services.

The partnership will help the Zacks Rank #3 (Hold) company drive traffic and sales through enhanced customer experience. These devices will improve the dining experience by making it customer friendly.

Other Stocks to Consider

Other players in the restaurant industry that look attractive at the current levels include AFC Enterprises Inc. (AFCE) and CEC Entertainment Inc. (CEC). Both these restaurateurs carry a Zacks Rank #2 (Buy).

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