El Pollo Loco’s transactions declined 6.8% in the fourth quarter, but CEO Liz Williams said 2025 will be a year of turnaround.
That is, turnaround for the brand, not the business, she said. The business fundamentals are sound.
Nearing her one-year anniversary as CEO, Williams described 2024 as a “foundational year,” saying the 496-unit chain made progress on key objectives. Coming in 2025, however, is a brand relaunch, including a robust calendar of new menu items supported by a new marketing agency.
Often in a turnaround, the food needs to be fixed or improved, she said. “That just is not our case. The turnaround needed for El Pollo Loco is one to modernize the brand, to drive operational consistency and, most importantly, to enhance our customer experience.”
The marketing push will attempt to “remind our lapsed consumers and communicate with new consumers that El Pollo Loco stands for quality and flavorful food that is quick, convenient and offers value for the money,” Williams said.
Same-store sales at company-operated restaurants grew 0.5% for the Dec. 25-ended fourth quarter, but that included a 9% increase in average check due to menu price increases, offset by the 6.8% decline in transactions.
But in the first quarter through Feb. 26, systemwide same-store sales grew 0.6%, including a 2.3% increase at company operated units and a 0.4% decrease at franchised locations.
In January, the chain launched its first new flavor for its bone-in grilled chicken in years: Mango Habanero, which has been well received. And Williams said more new flavors and sauces are in the works, as well as new hand-held Fresca Wraps, salads, and quesadillas—the latter in a value-focused combo meal, with guacamole, chips and a drink in the $9 to $10 range.
“The quesadilla is doing really well in test. It is a big, hearty eat,” Williams said. “It’s got, like I said, our all-white-meat chicken and then our guacamole. And there’s two flavors there, you’ve got creamy chipotle and you’ve got salsa verde.”
Williams said the restaurant remodel program, scheduled to touch 60 to 80 units this year, will also bring transformation.
This year, El Pollo Loco expects to open one to two new company-operated restaurants and eight to nine franchised units, mostly outside the home market of California in states like Arizona, Colorado, Idaho, New Mexico, Texas and Washington.
Williams said the chain is taking advantage of restaurant closures across the industry to take over and convert locations, reducing build costs.
For the year, the company reported net income of $25.7 million, compared with $25.6 million the prior year. Systemwide revenue grew to $473 million, compared with $468.7 million in fiscal 2023.
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.