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El Pollo Loco tests shrimp, beef menu items

El Pollo Loco tests shrimp, beef menu items

Chicken-focused chain may make limited-time permanent

El Pollo Loco Holdings Inc. is experimenting with a multi-protein platform that it may add permanently, the company said Thursday.

The Costa Mesa, Calif.-based chain has long been known for its signature citrus-marinated grilled chicken. But company officials attributed a 5.1-percent increase in systemwide same-store sales during the first quarter ended April 1 in part to the success of a Baja Shrimp limited-time offer, which will be available through the end of May.

In order to further test the company’s multi-protein strategy, El Pollo Loco has overlapped the offer of carne asada — grilled marinated beef — as a limited-time offer in addition to the shrimp, for several weeks. Including chicken, it marks the first time the chain has offered three proteins at once, said El Pollo Loco president and CEO Steve Sather.

“While we are still in an extended test in assessing the overall impact on the menu and mix, we are optimistic about what we believe to be a long-term opportunity to expand our menu, including the plan to include shrimp and/or carne asada as full-time menu items,” Sather said in a call Thursday with analysts.

Building on efforts to improve the customer experience at the “QSR-plus” brand, El Pollo Loco rolled out in April the use of pagers in company-owned locations to notify guests when their orders are ready.

The chain is also testing various back-of-the-house initiatives to improve throughput, including revised peak labor deployment, more simplified product builds and a new kitchen layout.

Same-store sales at company-owned restaurants increased 3.5 percent for the quarter, driven by a 3.4-percent increase in average check and a 0.1-percent increase in traffic, the company said. At franchised locations, same-store sales grew 6.2 percent, the company said.

Net income was $6.8 million, or 17 cents per share, compared with $5.5 million, or 17 cents per share, a year ago. Adjusting for costs associated with its initial public offering last year and other charges, the company said net income rose 40 percent, to $7.1 million, or 18 cents per share.

Revenue increased 11 percent, to $90.4 million, compared with $81.4 million a year ago.

For the year, El Pollo Loco expects systemwide same-store sales to increase between 3 percent and 5 percent.

The company expects to open 27 restaurants in 2015, including 16 company-owned and 11 franchised units.

El Pollo Loco operates or franchises more than 400 restaurants in Arizona, California, Nevada, Texas and Utah.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout

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