el pollo loco The California chain plans to open its first restaurant in New York City next year as it aims to become a national player.
El Pollo Loco has signed three development agreements for a total of 15 restaurants in the New York area over the next five years, the company announced Tuesday. The first store is expected to open in Queens in mid-2027.
Founded in Mexico in 1975, El Polo Loco opened its first U.S. restaurant in Los Angeles. Although the majority of its stores are still concentrated in California, its footprint has expanded to more than 500 restaurants across 10 states. Although the menu is growing, it is best known for its bone-in grilled chicken.
CEO Liz Williams wants El Pollo Loco to become a national chain. To expand beyond its Southwest home base, El Pollo Loco plans to open restaurants on the East Coast and then return to the West, she said.
To succeed in the new market, the chain needs to increase brand awareness in a crowded space at a time when consumers are watching their budgets.
“It’s a 50-year-old brand, so people have been looking at it for years and have always been curious, but we’re on hiatus,” Williams said.
Under Williams’ leadership, El Pollo Loco embarked on a turnaround focused on modernizing the restaurant and expanding its menu to more convenient options such as wraps and chicken tenders. The efforts are starting to pay off for the chain, which has reported same-store sales increases for three consecutive quarters.
“Margins expanded this quarter and the business model is healthy overall,” Williams said. “The brand is even stronger and healthier.”
El Pollo Loco also expanded rapidly during her tenure. When she launched the chain in March 2024, it was in just six states, she said. After opening nine restaurants last year, El Pollo Loco plans to open 18 to 20 new locations by the end of 2026.
Investors like the company’s trajectory. El Pollo Loco’s stock price has increased 44% over the past year. of S&P500 It rose more than 15% over the same period.
Its resurgence coincides with a difficult time for the restaurant industry. Burger and taco chains are facing rising beef costs. Consumers are eating out less frequently to save money, and competition among restaurants is intensifying.
El Pollo Loco also had to contend with more competition as restaurants look to capitalize on the growth in the chicken category. mcdonalds and taco bell Williams’ former employer has expanded its chicken options in recent years based on consumer market research information. And chicken-centric chains are rapidly expanding, from newcomer Dave’s Hot Chicken to Southern favorites like Zaxby’s and Raising Cane’s.
According to Barclays, El Pollo Loco will be the No. 8 chicken chain in the U.S. by sales in 2024, with a market share of 2.1%.
But El Pollo Loco’s focus on grilled chicken and Mexican flavors makes it stand out from the crowd, Williams said.
“Everyone is talking about wanting to eat something a little better, and they’re really thinking about their choices,” Williams said. “Everyone loves fried chicken…but when it comes to something you can eat every day, grilled chicken is a better option.”
News of the expansion comes as El Pollo Loco undergoes a leadership shake-up.
The company announced Friday in a regulatory filing that Damon Thomas will join the company as chief operating officer. He joins the company from shake shack.
Tara Hinkle was also recently named the chain’s new chief development officer. She previously held positions at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks, and joined the company in July.
Correction: This article has been updated to reflect that Williams said the company’s brand is now stronger and healthier. A previous version misquoted her.
