Brinker To Add Android Pay To Ziosk, Boost Digital Platform

Brinker International, Inc.’s (NYSE:EAT) Chili's Grill & Bar announced a partnership with Dallas-based Ziosk, maker of the ordering and pay-at-the-table tablet. The deal will allow Chili's customers to use Alphabet Inc.’s (NASDAQ:GOOGL) Android Pay on the Ziosk table-top tablets across company-owned restaurants in the U.S.

The new functionality was unveiled for the first time at Google I/O, and Ziosk and Chili's will start offering Android Pay at U.S.-based company-owned restaurants from the third quarter of 2016. This is the first zPay(SM) mobile wallet to be launched across Ziosk-equipped casual dining restaurants in the second-half of 2016.

Chili's guests only need to place their android phones near the Ziosk tablet's contactless reader and tap it. A vibration and a beep will let the guest know when the payment is accepted and verified. Additionally, Chili's guests can now enroll, login and access My Chili's Rewards via Android wallet to use loyalty points and mobile payment for future visits at the restaurants.

A digital wave has hit the U.S. fast casual restaurant sector as more and restaurants are deploying technology to enhance guest experience. Keeping with the trend, Brinker too has been actively boosting its digital platform. The restaurateur partnered with Ziosk and completed the installation of table-top technology at all company-owned restaurants in Jun 2014. The company also started integrating Apple (NASDAQ:AAPL) Pay into the table-top devices in Feb 2016. Further, franchised restaurants are installing the Ziosk which should be finished by the upcoming quarters. Brinker is also focusing on other technology-driven initiatives, like online ordering, to augment sales.

In our view, addition of Android Pay to the table-top technology will help Chili’s to improve interaction between diners and waiters. Additionally, it will help reduce waiting times, especially during peak hours, giving them a competitive edge over other fast-casual restaurants, such as Panera Bread Company (NASDAQ:PNRA) and Chipotle Mexican Grill, Inc. (NYSE:CMG) .

Brinker carries a Zacks Rank #3 (Hold).