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El Pollo Loco will open its first New York City restaurant next year as the California chain looks to become a national player. El Pollo Loco has closed three development agreements for a total of 15 restaurants in the New York area over the next five years, the company announced on Tuesday. The first location is expected to open in Queens in mid-2027. Founded in Mexico in 1975, El Pollo Loco opened its first U.S. restaurant in Los Angeles. The majority of its locations are still concentrated in California, but its footprint has grown to more than 500 restaurants across 10 states. It is best known for its bone-in grilled chicken, although its menu has expanded. CEO Liz Williams wants to make El Pollo Loco into a national chain. To expand outside its Southwestern stronghold, El Pollo Loco will open restaurants on the East Coast and then move its way back to the West, she said. To succeed in new markets, the chain will have to build its brand awareness in a crowded space at a time when consumers are watching their budgets. "Being a 50-year-old brand, people have seen it over the years and have always had that curiosity, but we have our work cut out," Williams said. Under Williams' leadership, El Pollo Loco has embarked on a turnaround focused on modernizing its restaurants and expanding its menu into more convenient options, like wraps and chicken tenders. The efforts have started to pay off for the chain, which has reported three straight quarters of same-store sales growth. "In the current quarter, we've expanded margins, and the business model is healthy overall," Williams said. "The brand has gotten even stronger and healthier." El Pollo Loco has also expanding quickly during her tenure. When she began in March 2024, the chain was in just six states, she said. And while it opened nine restaurants last year, El Pollo Loco is projecting 18 to 20 new locations by the end of 2026. Investors like the company's trajectory. Shares of El Pollo Loco have climbed 44% over the past year. The S&P 500 rose more than 15% over the same period. Its comeback coincides with a challenging time for the restaurant industry. Burger and taco chains have been facing soaring costs for beef. Consumers have been dining out less frequently to save money, which has intensified competition between eateries. El Pollo Loco has also had to contend with more competition as restaurants aim to cash in on growth in the chicken category. McDonald's and Taco Bell — Williams' former employer — have expanded their chicken options in recent years, informed by consumer market research. And chicken-focused chains have been expanding quickly, from newcomer Dave's Hot Chicken to Southern names like Zaxby's and Raising Cane's. In 2024, El Pollo Loco was the eighth-largest chicken chain by U.S. sales, with 2.1% market share, according to Barclays. But with its focus on grilled chicken and Mexican-inspired flavors, El Pollo Loco stands out from the crowd, Williams said. "Everyone is talking about wanting to eat a little better and really thinking through their choices," Williams said. "Everyone loves fried chicken ... However, in terms of what you're able to eat every single day, grilled chicken is just a better option." The expansion news comes as El Pollo Loco shakes up its leadership. The company on Friday said 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 tapped as the chain's new chief development officer. She previously held roles at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks before joining the company in July. Correction: This story was updated to reflect that Williams said the company's brand has gotten stronger and healthier. A previous version misquoted her.
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