El Pollo Loco is to open its first New York City restaurant next year as the California-based chicken chain begins an expansion aimed at making it a national brand.
The company has signed three development agreements covering 15 restaurants in the New York area over the next five years. Its first site is due to open in Queens in mid-2027.
Founded in Mexico in 1975, El Pollo Loco opened its first US restaurant in Los Angeles. It now has more than 500 restaurants across 10 states, although most remain concentrated in California.
Chief executive Liz Williams said the company planned to establish itself on the East Coast before expanding back towards the West. The move will put El Pollo Loco into a crowded market where consumers are becoming more cautious about spending on eating out.
“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,” Ms Williams said.
El Pollo Loco targets growth beyond California
The chain is best known for bone-in grilled chicken, but has broadened its menu with options including wraps and chicken tenders. The changes form part of a turnaround under Ms Williams, who joined the company in March 2024.
El Pollo Loco has reported three consecutive quarters of same-store sales growth. “In the current quarter, we’ve expanded margins, and the business model is healthy overall,” Ms Williams said. “The brand has gotten even stronger and healthier.”
The company has expanded from six states to 10 during her tenure. After opening nine restaurants last year, it expects to add between 10 and 18 locations by the end of 2026.
Its shares have risen 44% over the past year, compared with a gain of more than 15% for the S&P 500 over the same period.
El Pollo Loco is seeking to capitalise on demand for chicken while competing with larger restaurant groups. McDonald’s and Taco Bell have increased their chicken offerings, while chains including Dave’s Hot Chicken, Zaxby’s and Raising Cane’s have also been expanding.
El Pollo Loco was the eighth-largest chicken chain in the US by sales in 2024, with a 2.1% market share, according to Barclays. Ms Williams said the company’s focus on grilled chicken and Mexican-inspired flavours could help distinguish it from rivals.
The expansion comes alongside changes to the company’s leadership team. Damon Thomas, who previously worked at Shake Shack, is to become chief operating officer, while Tara Hinkle has been appointed chief development officer after holding roles at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks.
