Fajita Pete’s, the expanding Tex-Mex catering and delivery brand known for its fresh fajitas and Tex-Mex dishes, has set a new standard for the franchise industry by harnessing the power of artificial intelligence (AI) to revolutionize its catering marketing services. Fajita Pete’s has been testing a proprietary AI-powered workflow since May across its 31 units in four states, and the preliminary results have been incredibly impressive.
Motivated by the recent McKinsey & Company report stating that businesses choosing to integrate AI into marketing workflows see up to a 15% increase in sales and a 30% boost in customer retention rates, Fajita Pete’s partnered with Clutch Creator and formed a Catering Innovation Council to develop and implement custom-built AI software aimed at enhancing user experience, driving lead generation, and boosting sales.
“AI and automation are no longer items that can be left on a growing brand’s wish list. They are necessary components of any marketing strategy intended to grow basket sizes and guest frequency,” said Hugh Guill, Fajita Pete’s Chief Brand Officer. “Our patent-pending AI and automation process isn’t just sleek-looking; it is proving to drop more dollars to the bottom lines of our operators, and that is our ultimate goal as a brand.”
Some of the data generated across all Fajita Pete’s locations from the inception of the pilot period in May 2024 through September 2024:
- 13.85% increase in same-store catering ticket counts
- 20.79% increase in the ratio of catering forms started to catering forms completed
- 13.03% increase in retail catering basket size
- 70.93% positive variance in net sales compared to third-party catering orders
- 8.81% increase in orders placed through Fajita Pete’s own platform
Traditionally, third-party catering platforms charge commissions ranging from 15% to 18%, plus additional marketing costs that can climb to 20% or more. Fajita Pete’s saw an opportunity to innovate and support their operators to reduce dependence on third-party platforms while maximizing profitability via first-party ordering.
By utilizing AI and automation, Fajita Pete’s has:
- Improved User Experience: The AI software simplifies the ordering process, making it easier for customers to complete orders by reducing dozens of decisions down to a single prompt, boosting engagement and completion.
- Automated Upselling: The system leverages AI to suggest additional items and combos, enhancing the average basket size.
- Streamlined Lead Generation: Automation helps target potential catering clients more effectively, turning leads into loyal first-party customers.
“With a focus on supporting our operators and their four-wall economics, Fajita Pete’s believes in the Innovation Council model and continues to experiment and make adjustments in efforts to take our brand from good to great,” said Guill. Operators interested in learning more about Fajita Pete’s can connect with the company at franchisefajitapetes.com or by calling 281-664-2690.