This Popular Mexican Chain Had a “Disappointing” 2021

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The well-liked quick-relaxed Mexican chain El Pollo Loco has produced a solid submit-pandemic comeback. As of this February, the chain’s revenue grew by 7.4% when compared to the exact same time very last year, in accordance to QSR Magazine. Having said that, the manufacturer has been underperforming in one fully distinctive but very important place: growth.

Previous March, El Pollo Loco announced significant designs for advancement, with a target on tapping into marketplaces in Colorado, New Mexico, components of Texas, and its home foundation of California. Inside of the upcoming 5 years, the goal is to open up 140 dining establishments in the Western United States. But despite producing offers with cafe operators TWS Cafe Corporation, LMU investments, and Pikes Pollo, the L.A.-Mex chain is not conference its progress targets. Since unveiling its initial growth programs, El Pollo Loco has only signed on to launch 17 new locations.

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“Clearly, our information is not getting out there as proficiently as we would like,” Larry Roberts, El Pollo Loco’s CEO, said during the company’s fourth-quarter earnings contact.

Now, the chain operates some 480 areas across Arizona, California, Nevada, Texas, Utah, and Louisiana.

In an energy to much better seize high quality franchisees, El Pollo Loco will have senior administration included in the early levels of the recruiting method, launch a new franchising internet site, and realign the brand’s messaging by further more embracing its L.A.-Mex tradition to draw in more youthful shoppers.

Past the shift in El Pollo Loco’s franchising method, the chain is also concentrating on streamlining other cafe operations. To accelerate the cooking course of action, workers will use stemless serrano peppers and pre-slice cilantro, though the business is now tests a new device that will lower the volume of time it takes to make salsa. El Pollo Loco will also be screening a simplified menu later in 2022 to increase get accuracy and provider speed.

“So there is a lot of get the job done likely on to see how we might enhance our margins across the board,” Roberts said. “So at the exact time, what we want to be actually, seriously watchful about is, do not do everything to jeopardize the good quality of the food.”