MISSION, Texas - The Taco Palenque Group wants to embrace AI in order to improve efficiency and “be ahead of the competition,” its CEO has revealed.
Juan Francisco Ochoa, Jr., was a panelist at a recent Greater Mission Chamber of Commerce Buenas Tardes Luncheon.
“We are all navigating the uncertainty,” Ochoa said, referring to the restaurant business.
“After the pandemic, there was a very strong disruption, and so adapting has been our strategy.”
Ochoa pointed out that sales transactions have slowed in recent years.
The good news, however, is that in good times or bad, the restaurant industry is always there, he said.
“All the industry is two to four percent below sales. Starbucks, Taco Bell, ourselves also,” Ochoa said. “So our focus has been to streamline operations, to train our people even more and to hold off aggressive expansion. But we are still expanding if we find opportunities.”
Panel moderator Kimberly Selber, associate dean for community engagement in UT-Rio Grande Valley’s college of liberal arts, said there are 54 restaurants in the Taco Palenque chain.
“Right now, we have to be very cautious with capital. Can we spend our capital? We're focusing a lot of people, the culture of our people and training, and the cost of the supply chain,” Ochoa said. “We're blessed to be here on the border, in the (Rio Grande) Valley, because all the produce comes through here.”
He said the increased cost of meat “has hit us hard.” He continued: “We have to be very careful, because we cannot increase prices that much. But we never compromise on quality.”
Ochoa then addressed Artificial Intelligence.
“The other thing that is very important for us as a challenge is AI, the technology. We were about to change our ERP (enterprise resource and planning program platform). And we're waiting because with AI, we don't know which one is going to be the best choice for optimizing the operations of the organization and purchasing. It (AI) is everywhere,” Ochoa said.
“But also in these times, there are opportunities. In turbulent times, we have opportunities. That's where we have to jump in. So I think that's how we've been. Our family business is always trying to find opportunities and find financing and the (right) people.”
UTRGV's Selber asked those in the audience if their company had embraced AI. She said every business needs to.
Asked for a wrap-up remark, Ochoa said: “I think it's a moment of optimizing efficiencies, and seizing the opportunities. And the main opportunity that I think is out there is the new inventions of AI and how to use it. That’s what we're trying to include in our culture, our restaurant business. So it's a new tool, and we need to learn to use it first so we can be ahead in the competition.”
