Chili’s fajitas are getting a makeover, including upgraded ingredients, a new presentation and a plan to ensure that every platter is sizzling when it comes out of the kitchen.
The hope is that the improvements will help the bar-and-grill chain sell more fajitas, the big-ticket Tex-Mex staple that is one of its specialties.
The revamp is part of the chain’s ongoing focus on what it calls its Core Four menu items, which also include burgers, chicken tenders (aka Chicken Crispers) and margaritas.
These have historically been the chain’s biggest sales drivers, and over the past two years, three of the four have gotten updates, such as a new frying process for Chicken Crispers and additional price tiers for margaritas. The reboots are designed to help grow the categories while also clarifying Chili’s brand in the minds of consumers.
Now it is fajitas’ turn for a refresh, CEO Kevin Hochman said Thursday at the KeyBanc Capital Markets Consumer Spotlight Conference. And he noted that the dish has been the most challenging of the Core Four to reformulate.
For one thing, it has a lot of moving parts. There is the protein—chicken, steak or shrimp—and grilled veggies, as well as a side of rice and black beans. Pico de gallo, sour cream, shredded cheese and guac are served separately for topping, along with tortillas for constructing the fajitas. The whole array is traditionally presented on a piping hot metal platter that is still sizzling when it gets to the table.
Chili's fajitas have a number of components. | Photo courtesy of Chili's Grill and Bar
Hochman said that to sell meaningfully more fajitas, Chili’s had to rethink the whole business model rather than just make a few tweaks.
One of the first changes Chili’s made was to the tortillas. Customers often complained that the tortillas were dry or cracked, so Chili’s switched to a higher-quality product that is similar to what Chipotle uses. “It's much more supple, it doesn't crack,” Hochman said, according to a transcript from financial services site AlphaSense.
Chili’s has also improved the marinade process for its fajita chicken and is working on the seasoning of the steak.
A third area of focus has been the “vegetable boats,” or the condiments like sour cream and pico that customers put on their fajitas. Previously, employees had prepared these in advance and put them in the walk-in cooler until they were needed. But that caused the ingredients to lose some freshness. Now they will be made a la minute, “so when you order the fajita, those boats will be made,” Hochman said.
Gone too are the narrow silver bowls that the accoutrements were once served in. Employees hated washing them, and they were just another piece of dishware Chili’s had to purchase. The toppings will now be served on a more traditional plate, which is easier to work with and gives the veggies a brighter appearance, Hochman said.
Chili’s is also working on the fajitas’ presentation. They will now be served with a whole fried jalapeno on top—a flourish that the Chili’s team observed while trying fajitas at other restaurants.
“They sell a lot of fried whole jalapenos on top,” Hochman said. “We're like, ‘Hey, that was clearly on-brand at Chili's.’” The chain’s logo, of course, is a big red chili pepper.
The chain is also making an effort to ensure that the fajitas give off their signature sizzle every time they leave the kitchen. The head-turning crackle is such an effective advertisement for the dish that, in the past, servers were trained to parade sizzling fajitas around the restaurant when they were ordered.
“That sizzle is really, really important, and it's hard to do consistently,” Hochman said. When the kitchen is busy, there are only so many areas where skillets can be heated enough to make the sizzle happen. Hochman did not go into detail about how Chili’s plans to pull off a 100% sizzle rate.
While some of Chili’s other recent efforts, such as its TV advertising and its 3 for Me value meals, have been focused on driving traffic to its restaurants, its work on fajitas will be designed to encourage customers to spend more once they actually sit down. Fajitas will get a more prominent spot on the menu, as well as a price increase.
“At a minimum, I think we're just going to be able to get that mix and that price from doing this,” Hochman said. “It’s a much, much better product, but who knows, maybe it can drive traffic one day.”
He noted that Chili’s fajitas—which typically start at around $18—still tend to cost less than those of local competitors. In Chili’s home market of Dallas, “fajitas can start at $24, $25 and get all the way up to above $30,” Hochman said. “We're not even close to that. So there's definitely room that we can price behind these improvements.”
The new fajitas are not on the menu yet, but they will be part of an upcoming update. They are the latest step in Chili’s wholesale turnaround under Hochman, who became CEO of parent company Brinker International in 2022. The 1,230-unit chain is coming off of two straight quarters with same-store sales growth over 14%.
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