El Pollo Loco will open its first New York Metropolis restaurant subsequent 12 months because the California chain seems to be to turn into a nationwide participant.
El Pollo Loco has closed three improvement agreements for a complete of 15 eating places within the New York space over the subsequent 5 years, the corporate introduced on Tuesday. The primary location is anticipated to open in Queens in mid-2027.
Based in Mexico in 1975, El Pollo Loco opened its first U.S. restaurant in Los Angeles. The vast majority of its places are nonetheless concentrated in California, however its footprint has grown to greater than 500 eating places throughout 10 states. It’s best identified for its bone-in grilled hen, though its menu has expanded.
CEO Liz Williams needs to make El Pollo Loco right into a nationwide chain. To develop exterior its Southwestern stronghold, El Pollo Loco will open eating places on the East Coast after which transfer its method again to the West, she mentioned.
To achieve new markets, the chain must construct its model consciousness in a crowded area at a time when customers are watching their budgets.
“Being a 50-year-old model, folks have seen it through the years and have at all times had that curiosity, however we’ve got our work minimize out,” Williams mentioned.
Below Williams’ management, El Pollo Loco has launched into a turnaround targeted on modernizing its eating places and increasing its menu into extra handy choices, like wraps and hen tenders. The efforts have began to repay for the chain, which has reported three straight quarters of same-store gross sales progress.
“Within the present quarter, we have expanded margins, and the enterprise mannequin is wholesome general,” Williams mentioned. “The model has gotten even stronger and more healthy.”
El Pollo Loco has additionally increasing shortly throughout her tenure. When she started in March 2024, the chain was in simply six states, she mentioned. And whereas it opened 9 eating places final 12 months, El Pollo Loco is projecting 18 to twenty new places by the top of 2026.
Traders like the corporate’s trajectory. Shares of El Pollo Loco have climbed 44% over the previous 12 months. The S&P 500 rose greater than 15% over the identical interval.
Its comeback coincides with a difficult time for the restaurant trade. Burger and taco chains have been dealing with hovering prices for beef. Customers have been eating out much less steadily to save cash, which has intensified competitors between eateries.
El Pollo Loco has additionally needed to cope with extra competitors as eating places purpose to money in on progress within the hen class. McDonald’s and Taco Bell — Williams’ former employer — have expanded their hen choices in recent times, knowledgeable by shopper market analysis. And chicken-focused chains have been increasing shortly, from newcomer Dave’s Scorching Hen to Southern names like Zaxby’s and Elevating Cane’s.
In 2024, El Pollo Loco was the eighth-largest hen chain by U.S. gross sales, with 2.1% market share, in response to Barclays.
However with its give attention to grilled hen and Mexican-inspired flavors, El Pollo Loco stands out from the gang, Williams mentioned.
“Everyone seems to be speaking about eager to eat a little bit higher and actually pondering by means of their decisions,” Williams mentioned. “Everybody loves fried hen … Nonetheless, when it comes to what you are in a position to eat each single day, grilled hen is only a higher possibility.”
The growth information comes as El Pollo Loco shakes up its management.
The corporate on Friday mentioned in a regulatory submitting that Damon Thomas will be a part of the corporate as chief working officer. He joins the corporate from Shake Shack.
Tara Hinkle was additionally lately tapped because the chain’s new chief improvement officer. She beforehand held roles at The Espresso Bean & Tea Leaf, Taco Bell and Starbucks earlier than becoming a member of the corporate in July.
Correction: This story was up to date to mirror that Williams mentioned the corporate’s model has gotten stronger and more healthy. A earlier model misquoted her.