Wingstop CEO Michael Skipworth is saying the phrase “game changing” a lot lately.
The Dallas-based fast-casual chain has enjoyed two years of double digit same-store sales increases—albeit slowed by economic uncertainty and other challenges in the first quarter this year. But the chicken concept has achieved those somewhat eye-popping sales increases in recent years largely with restaurants that—believe it or not—operated with paper tickets.
Now, however, the chain is rolling out a new Smart Kitchen initiative that will bring the chain into a modern era and dramatically increase speed of service, cutting estimated quote times in half, from about 20 minutes to about 10.
That will put Wingstop in the consideration set for guests who might be looking for a chicken sandwich or the new crispy chicken tenders at lunch.
For those guests, waiting 20 minutes or more would likely send them elsewhere for their lunch.
Historically, Wingstop on third-party delivery platforms would have a standard quote time of more like 30 to 40 minutes when restaurants get busy, Skipworth said. That means Wingstop wouldn’t even show up in searches on platforms that allow guests to filter for delivery under 30 minutes.
“But with Smart Kitchens, Wingstop is now showing up as ‘fastest near you,’ or showing up in the ‘under 30 minutes’ category,” he said.
During the Super Bowl, for example, Smart Kitchen units had an average speed of about 16 minutes. And that was during one of the busiest weekends of the year for the brand.
“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,” said Skipworth. “It will put Wingstop in the consideration set for more occasions and ultimately will win more business from our guests.”
In other words, it will be game changing.
Wingstop showed off the new Smart Kitchen system at a recent Investor Day in Dallas. The Smart Kitchens are in more than 400 units currently, and the 2,690-unit chain expects it will be systemwide by the end of the year.
The move is a key part of Wingstop’s goal to reach 10,000 units and an average unit volume of $3 million. At the end of the first quarter, Wingstop’s AUV was $2.1 million. However, Skipworth notes that the top quartile of the system already have an AUV that tops $4 million.
The chicken sandwich line, introduced in 2022, helped bring a new guest to Wingstop, long known for its bone-in wings. In February, the chain launched new crispy chicken tenders, which could also be “sauced and tossed” in the 12 flavors. (Really 13, if you include the Mexican Street Spice limited-time offer that rolled out last week.)
The tenders have also driven new guests to Wingstop, which Skipworth has called the largest brand that nobody has ever heard of. In March, for example, Wingstop saw a record high of new guest acquisitions.
Sandwiches are in the single digits, as a percentage of sales, and tenders have already surpassed that, he said. But sales of both sandwiches and tenders are expected to grow considerably as the new Smart Kitchens come into play, said Skipworth.
“We see a lot of runway in front of us,” he said.
Wingstop’s new Smart Kitchens are not unlike other digital kitchen display systems in restaurant chain kitchens today, but there are a few key differences.
Wingstop said the new system can be learned in one shift. | Photo courtesy of Wingstop.
First, the proprietary system, developed with a tech partner (which was not identified), uses an AI-driven machine-learning model that collects hundreds of data points to forecast how product each restaurant will need, in 15-minute increments.
The data being considered include things like the weather, local sporting events, whether a school is nearby and when it’s in session—the details are specific to each restaurant, said Marisa Carona, senior vice president, chief U.S. franchise operations and development officer, who gave a recent tour.
As orders come in, the orders appear first on a screen at the “bombardier station,” using graphics to indicate the number and type of chicken to go into the fryers, for example.
Under the old system, a paper ticket would print out in the back of the house on a machine that may or may not have enough toner.
“Sometimes you’d have to squint to read it,” she said. Those paper tickets followed the order through the restaurant, sometimes falling behind countertops.
In the Smart Kitchens, team members can swipe the graphics to indicate a task completed, like a video game. The product then automatically populates on to the next screen at the “wingman station,” where the chicken is sauced and tossed, for example, or the fry station for sides.
The screen also clearly indicates how orders should be packaged at the “pilot station,” or expo. A sticker with order details spits out and can be slapped onto the bag, and it’s ready to go.
In the restaurant, a screen shows customers how their order is progressing, or when it’s ready.
Customers can track their orders on the screen. | Photo courtesy of Wingstop.
So far, Carona said Smart Kitchen units are outperforming paper-ticket stores on every metric. Team members can learn the system in as little as one shift. And the system installation is not onerous—it’s really a matter of electrical wiring and putting up a few screens.
“I’m getting phone calls every day from partners (franchisees) asking to be moved to the top of the rollout list,” she said.
Skipworth did not disclose the cost of installing the Smart Kitchen system, but he said the two-year return on investment for franchisees opening new units is not impacted, indicating any additional cost is offset by increased sales.
A report from Jeffrey Bernstein at Barclays said the Smart Kitchen rollout also includes a shift from hand-cut fries to a frozen product. Tests indicate the frozen fries hold heat well and scored high in guest satisfaction.
Bernstein, not surprisingly, called the Smart Kitchen rollout a game changer.
“This initiative represents a key unlock for the brand’s next phase of growth, as it should help increase frequency, a big driver in scaling AUVs towards their ~$3 million goal,” the report said. “And we believe this new system presents an even greater opportunity in the lunch (~20% of sales) and late night (~20% of sales) dayparts, where speed is more essential.”
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