El Pollo Loco feels the heat
Aiming to attract more upscale customers, El Pollo Loco has recently added sweet-potato fries, sweet corn cakes and flame-grilled corn to its menu. Above, a branch in Santa Ana. (Mariah Tauger, Los Angeles Times / May 19, 2011)
El Pollo Loco, with flame-grilled chicken at the top of its menu, urges its customers to “taste the fire.” Now the chain itself is feeling the heat.
Despite its efforts to spice up its menu offerings and boost business, the Orange County company is struggling with red ink and greater competition.
The chain said last week that it had lost $4.7 million in the first quarter of 2011 partly because of a drop in sales of 2.5%. That was on top of significant losses in each of the last three years: $40 million in 2010, $52 million in 2009 and $40 million in 2008.
The 400-store chain, whose majority owner is New York private equity firm Trimaran Capital Partners, has hired a new advertising agency to bolster its image and an architectural firm to improve the look of its restaurants.
– Sharon Bernstein, Los Angeles Times