El Pollo Loco
Click
here to link to El Pollo Loco’s detailed company profile
From its beginnings as a roadside chicken stand to its present 400 company- and franchise-owned restaurants, El Pollo Loco continues to bring dishes to consumers who desire flavorful food that complements today’s active lifestyles. El Pollo Loco’s signature dish features an authentic family recipe of fresh chicken marinated in special herbs, spices and citrus juices that is flame-grilled to perfection. Through the years, El Pollo Loco has demonstrated a strong commitment to menu innovation, introducing a wide variety of fresh flavorful entrées inspired by the kitchens of Mexico.
El Pollo Loco has broad and deep consumer acceptance across a wide span of demographic and socioeconomic sectors and is a healthier alternative to traditional fast food.
| |
Operating Units (in the U.S and its Territories) |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
248 |
243 |
241 |
| | % Change | -- |
-2.0% |
-0.8% |
| | Company-Owned |
165 |
172 |
171 |
| | % Change | -- |
% |
% |
| | Total |
413 |
415 |
412 |
| | % Change | -- |
4.2% |
-0.6% |
| | Franchised as % of Total |
60.1% |
58.6% |
58.5% |
Investment Required
The fee for a franchise is $40,000.
El Pollo Loco provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item |
Established Low Range |
Established High Range |
| |
Initial Franchise Fee |
$40,000 |
$40,000 |
| |
Lease Payment |
$3,350 |
$13,.350 |
| |
Architectural Design |
$15,000 |
$65,000 |
| |
Equipment, Fixtures and Furnishings |
$275,000 |
$425,000 |
| |
POS Equipment |
$20,000 |
$40,000 |
| |
Signage |
$6,000 |
$50,000 |
| |
Expenses While Training |
$10,000 |
$20,000 |
| |
Opening Inventory and Supplies |
$20,000 |
$25,000 |
| |
Lease Security Deposits |
$5,000 |
$10,000 |
| |
Insurance |
$3,000 |
$6,000 |
| |
Grand Opening Fee |
$5,000 |
$5,000 |
| |
Site Selection Costs |
$500 |
$3,000 |
| |
Additional Funds (3 Months) |
$25,000 |
$100,000 |
| |
Total Initial Investment |
$427,850 |
$802,350 |
Ongoing Expenses
El Pollo Loco franchisees pay royalty fees equal to 4% of monthly gross sales and advertising fees ranging from 5% to 6% of monthly gross sales. Additional fees payable by the franchisee include training fees.
What You Get—Training and Support
Along with training materials, franchisees and their teams attend training sessions on El Pollo Loco’s System that, based on each team member’s position, ranges from 10-40 days. Working with seasoned veterans, franchisees gain hands-on training in restaurant operations and management. Additionally, expert real estate teams work with El Pollo Loco franchisees in market planning and site selection to determine the best possible locations for new restaurants.
El Pollo Loco provides their franchisees with first-class marketing support with a team of experienced executives and management. El Pollo Loco’s marketing and advertising programs include innovative campaigns, bilingual promotional strategies, product innovation to fuel sustained growth, support for grand openings and marketing plans tailored to each market’s needs.
Territory
El Pollo Loco grants nonexclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2012 Edition of Bond’s Top 100 Franchises publication.
|
