Latest news with #SmartKitchen
Daily Mail
22-05-2025
- Business
- Daily Mail
Wingstop rolls out new Smart Kitchen
By Published: | Updated: Wingstop's 'game changing' Smart Kitchen is taking the restaurant chain to new heights. The new AI-powered kitchen has helped hundreds of locations slash their standard wait times in half - from around 20 minutes to around 10. The tech has massively outperformed paper-ticket methods, and the average wait time was only 16 minutes during the Super Bowl , one of Wingstop's busiest weekends of the year. The company is now hoping that shorter wait times will mean Americans choose it as an option for lunch, and that the chain will show up as a quick option on delivery apps. 'Being able to deliver on the speed expectation of the consumer of 10 minutes at lunch, and do it consistently, we think that's a powerful unlock,' Wingstop CEO Michael Skipworth told Restaurant Business . The Smart Kitchen testing phase began over a year ago after it was placed in about 30 restaurants. Now, it's in more than 400 Wingstop restaurants, and the chain plans to expand systemwide by the end of the year. The buffalo-style chicken wing chain was established in Garland, Texas, in 1994, and now has over 2,000 restaurants worldwide. In the past, the chain would have a standard wait time of around 30 to 40 minutes on third-party delivery apps, said Skipworth (pictured). That meant that Wingstop would not even show up in platform searches that allow customers to filter for delivery under half an hour. 'But with Smart Kitchens, Wingstop is now showing up as "fastest near you," or showing up in the "under 30 minutes" category,' he told Restaurant Business. Each machine uses collected data to predict how long a product will take to make. Data factors include time, weather patterns and sports events. When the orders come in, they appear on a screen at the 'bombardier station' and show graphics indicating the amount and type of chicken to cook. Employees can then swipe the images when an order is completed, which will automatically show up on another screen at the 'wingman station,' the machine where chicken is sauced and tossed. Workers can then take orders to the 'pilot station,' package them according to directions from the 'wingman station,' and add a sticker with order details to the bag after the machine prints it out. During the early stages, Skipworth told analysts the system would help ensure its service speed met customer expectations. Employees have been getting antsy while waiting for their days of squinting at paper tickets to be over. 'I'm getting phone calls every day from partners (franchisees) asking to be moved to the top of the rollout list,' said Marisa Carona, senior vice president, chief US franchise operations and development officer. Employees can learn how to use Smart Kitchens in one shift, and installation costs are expected to be offset by sale increases. While Smart Kitchens have worked wonders for Wingstop, other chains are also turning to AI in the hope of better efficiency and customer satisfaction, but also potential job losses for fast food workers.
Daily Mail
22-05-2025
- Business
- Daily Mail
Fast food giant rolls out 'smart' kitchens that get food out twice as fast
Wingstop's 'game changing' Smart Kitchen is taking the restaurant chain to new heights. The new AI-powered kitchen has helped hundreds of locations slash their standard wait times in half - from around 20 minutes to around 10. The tech has massively outperformed paper-ticket methods, and the average wait time was only 16 minutes during the Super Bowl, one of Wingstop's busiest weekends of the year. The company is now hoping that shorter wait times will mean Americans choose it as an option for lunch, and that the chain will show up as a quick option on delivery apps. 'Being able to deliver on the speed expectation of the consumer of 10 minutes at lunch, and do it consistently, we think that's a powerful unlock,' Wingstop CEO Michael Skipworth told Restaurant Business. The Smart Kitchen testing phase began over a year ago after it was placed in about 30 restaurants. Now, it's in more than 400 Wingstop restaurants, and the chain plans to expand systemwide by the end of the year. The buffalo-style chicken wing chain was established in Garland, Texas, in 1994, and now has over 2,000 restaurants worldwide. In the past, the chain would have a standard wait time of around 30 to 40 minutes on third-party delivery apps, said Skipworth. That meant that Wingstop would not even show up in platform searches that allow customers to filter for delivery under half an hour. 'But with Smart Kitchens, Wingstop is now showing up as "fastest near you," or showing up in the "under 30 minutes" category,' he told Restaurant Business. Each machine uses collected data to predict how long a product will take to make. Data factors include time, weather patterns and sports events. When the orders come in, they appear on a screen at the 'bombardier station' and show graphics indicating the amount and type of chicken to cook. Employees can then swipe the images when an order is completed, which will automatically show up on another screen at the 'wingman station,' the machine where chicken is sauced and tossed. Workers can then take orders to the 'pilot station,' package them according to directions from the 'wingman station,' and add a sticker with order details to the bag after the machine prints it out. CEO Michael Skipworth believes Smart Kitchens will ultimately help draw in more guests During the early stages, Skipworth told analysts the system would help ensure its service speed met customer expectations. Employees have been getting antsy while waiting for their days of squinting at paper tickets to be over. 'I'm getting phone calls every day from partners (franchisees) asking to be moved to the top of the rollout list,' said Marisa Carona, senior vice president, chief US franchise operations and development officer. Employees can learn how to use Smart Kitchens in one shift, and installation costs are expected to be offset by sale increases. While Smart Kitchens have worked wonders for Wingstop, other chains are also turning to AI in the hope of better efficiency and customer satisfaction, but also potential job losses for fast food workers. Yum Brands, the owner of Taco Bell, KFC, and Pizza Hut, is planning to use AI for all drive-thru orders by this summer. McDonald's is also planning to add AI technology to all locations worldwide over the next few years. Other fast food restaurants that are experimenting with AI include Wendy's, Chipotle, and Chick-fil-A.
Miami Herald
16-05-2025
- General
- Miami Herald
Wingstop makes big moves to fix a big customer complaint
Many of us have experienced the uncomfortable sounds of loud, uncontrollable stomach growls. We begin to get irritable because all we can focus on is the emptiness in our bellies. At this point, "hanger" has set in, and to make matters worse, the food has taken way too long to be served. Nothing is worse than waiting what feels like hours as you are about to pass out from the blend of hunger and anger that has reached its peak. Don't miss the move: Subscribe to TheStreet's free daily newsletter When thinking of this scenario, everyone has a restaurant that instantly pops into their heads. Many continue going despite the long wait times, but life would be less complicated if orders were prepared faster. Related: Taco Bell takes its Mexican menu somewhere unexpected Now, a restaurant chain has answered consumers by introducing an innovative tool that could end this major issue. Wingstop (WING) is an American quick-service restaurant chain specializing in chicken wings and sauces, with over 2,600 locations worldwide . Fans can't get enough of its spicy chicken wings. However, many have an issue with this restaurant, which, if not dealt with quickly, could lead to a worrisome future for the chain. Related: McDonald's menu adds experimental new items fans will love Although Wingstop's food may be mouthwatering, some customers cannot deal with long wait times. Many netizens took to Reddit to express their frustration with the restaurant chain, with a user claiming that "it takes at least 30 minutes to an hour to get food." Another user commented in the same thread saying, "I ordered and waited 30 mins. and still had to wait another hour when I got there. They weren't even taking carry-out orders." A Reddit user in another thread claimed, "When there's no one (it takes) about 15-20 mins. If there's three people ahead of me, [it takes] like 45 mins. to an hour, which I don't get." Not all posts were negative, with some users saying their local Wingstop usually takes 15-35 minutes to prepare an order. However, the range is vast and inconsistent, given that the service comes from the same chain. WingStop launched Smart Kitchen earlier this year, and after only a few months of testing in all its Dallas-Fort Worth and Las Vegas locations, the results have been shocking. Smart Kitchen is an Artificial Intelligence (AI)-powered system that uses restaurant data, such as restaurant sales, and traffic-focused factors, like weather, sporting calendars, peak hours, etc., to make operations more efficient and faster. It helps ease the daily chaos and reduce order preparation time. For the past two years, Wingstop has been training the system with this data to predict customer traffic and demand for better turnover. This digital system does everything from providing orders in an easy-to-understand manner to helping with order accuracy and consistency. It even gives order status updates to guests. More Retail News: Kroger quietly shuts down service that Walmart dominatesWhen you'll see empty retail store shelves due to tariffs Wingstop shared in its latest earnings call that the integration of Smart Kitchen has already improved the business by making operations smoother and cutting the time to prepare an order by approximately half, to only 10 minutes. The results have also raised customer satisfaction and staff performance. Wingstop's system appears to be working because it plans to integrate it at all locations nationwide by the end of this year. Other major restaurant chains, such as Yum! Brands' Taco Bell (YUM) , Chipotle (CMG) , Wendy's (WEN) , and McDonald's (MCD) , have also begun integrating AI in their operations and claim the results have been nothing but positive. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
02-05-2025
- Business
- Yahoo
WING Q1 Earnings Call: Menu Innovation and Digital Investments Offset Margin Pressure
Fast-food chain Wingstop (NASDAQ:WING) met Wall Street's revenue expectations in Q1 CY2025, with sales up 17.4% year on year to $171.1 million. Its non-GAAP profit of $0.99 per share was 14.7% above analysts' consensus estimates. Is now the time to buy WING? Find out in our full research report (it's free). Revenue: $171.1 million vs analyst estimates of $170.8 million (17.4% year-on-year growth, in line) Adjusted EPS: $0.99 vs analyst estimates of $0.87 (14.7% beat) Adjusted EBITDA: $54.19 million vs analyst estimates of $57 million (31.7% margin, 4.9% miss) Operating Margin: 22.4%, down from 29.3% in the same quarter last year Free Cash Flow Margin: 10.1%, down from 23% in the same quarter last year Locations: 2,689 at quarter end, up from 2,279 in the same quarter last year Same-Store Sales were flat year on year (21.6% in the same quarter last year) Market Capitalization: $7.25 billion Wingstop's first quarter results reflected steady revenue growth, driven by accelerated restaurant openings and progress in digital initiatives, as described by CEO Michael Skipworth. Management attributed performance to strong new guest acquisition, the successful relaunch of chicken tenders, and ongoing investments in the Wingstop Smart Kitchen. The company also highlighted the impact of difficult prior-year sales comparisons and regional consumer pullbacks, especially in lower-income and Hispanic markets, which management characterized as temporary. Looking ahead, management expects the macroeconomic environment to remain uncertain, shaping a cautious outlook for same-store sales in 2025. Skipworth and CFO Alex Kaleida emphasized continued focus on expanding unit count, brand awareness, and the upcoming loyalty program as levers for long-term growth. Kaleida noted that the Smart Kitchen rollout and digital personalization strategies are designed to improve guest experience and transaction frequency, supporting the company's goal of reaching $3 million average unit volumes (AUVs) and over 10,000 global locations. Management's remarks focused on the company's ability to deliver revenue growth through accelerated unit development and digital transformation, while navigating margin headwinds and shifts in guest behavior. Accelerated Unit Openings: Wingstop opened a record 126 new restaurants in the quarter, with franchisees' demand for growth supported by strong unit-level economics and predictable food costs. Management stated that new restaurant volumes are trending at $1.8 million, up from $1.2 million three years ago. Digital and Technology Investments: The rollout of the proprietary Wingstop Smart Kitchen platform, now in over 200 restaurants, has cut order times in half and improved consistency. Early results show higher sales and guest satisfaction versus control locations, and the company expects a full rollout by year end. Menu Innovation and Guest Acquisition: The relaunch of chicken tenders drove record new guest acquisition in March, with management noting that new tender guests exhibit behavior similar to those from the chicken sandwich launch—starting with individual visits and migrating to group occasions over time. International Expansion Momentum: Management highlighted strong results in international markets, including record-opening sales in Kuwait and rapid expansion in Puerto Rico. Plans are underway to launch in Australia and up to five new international markets in 2025. Brand Awareness Initiatives: Increased advertising spend, including a partnership with the NBA and targeted campaigns through digital channels, was cited as a key driver for brand health metrics and guest acquisition. Management noted a persistent 20-point gap in brand awareness versus competitors, underscoring ongoing marketing efforts. Management's outlook for 2025 centers on cautious expectations for same-store sales growth, with a greater emphasis on new unit development, digital engagement, and menu innovation to support future performance. Smart Kitchen Rollout Impact: The full deployment of the Smart Kitchen is expected to improve service speed and consistency, potentially unlocking new sales occasions and driving higher transaction frequency, though management has not explicitly factored its impact into second-half guidance. Loyalty Program Launch: A new loyalty program, leveraging the company's 50 million-user database, is planned for pilot in late 2025. Management expects this initiative to drive repeat visits and enhance personalized marketing. International and Franchise Expansion: Ongoing commitment to opening new markets and accelerating franchise growth, including in Australia and other international regions, is viewed as a critical long-term growth engine. Management cited strong franchisee demand and improved returns as key enablers. Jeffrey Bernstein (Barclays): Asked about the rationale behind the cautious 1% same-store sales outlook. Management attributed this to difficult prior-year comparisons and localized consumer pullbacks, emphasizing confidence in long-term strategies. David Tarantino (Baird): Inquired about the measured sales impact from the Smart Kitchen rollout. Management pointed to early positive sales divergence and improved guest satisfaction, but did not quantify the expected benefit for the remainder of 2025. Danilo Gargiulo (Bernstein): Queried on international expansion plans, specifically the timing and strategic importance of China and India. Management stated that China remains a long-term opportunity but is not prioritized currently due to the geopolitical environment; India was also cited as a significant future market. Andrew Charles (TD Cowen): Asked about the effect of development on existing store sales and the decision to move from CRM efforts to a formal loyalty program. Management indicated minimal sales transfer impact and highlighted the importance of loyalty for driving repeat behavior. Chris O'Cull (Stifel): Sought details on how Wingstop is addressing softness among Hispanic and lower-income consumers, and strategies to communicate improved service times. Management described targeted, value-driven marketing and reliance on organic guest experience improvements rather than explicit messaging about faster service. In the coming quarters, the StockStory team will monitor (1) the pace and sales impact of the Smart Kitchen rollout, (2) the pilot and development of the new loyalty program as a driver of guest retention, and (3) continued international expansion, including new market entries and franchisee momentum. We will also pay close attention to whether menu innovation sustains new guest acquisition and if marketing investments narrow the brand awareness gap. Wingstop currently trades at a forward P/E ratio of 65.4×. 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