El Pollo Loco will open its first restaurant in New York next year as the California chain seeks to become a national player.
El Pollo Loco has entered into three development deals for a total of 15 restaurants in the New York area over the next five years, the company announced Tuesday. The first location is expected to open in Queens in mid-2027.
Founded in Mexico in 1975, El Pollo Loco opened its first American restaurant in Los Angeles. The majority of its locations are still concentrated in California, but its presence has expanded to more than 500 restaurants in 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 a national chain. To expand outside its southwest stronghold, El Pollo Loco will open restaurants on the East Coast and then return to the West, she said.
To succeed in new markets, the chain will need to build brand awareness in a busy space, at a time when consumers are watching their budgets.
“As a 50-year-old brand, people have seen it over the years and always had that curiosity, but we have work to do,” Williams said.
Under Williams’ leadership, El Pollo Loco embarked on a turnaround focused on modernizing its restaurants and expanding its menu with more convenient options, like wraps and chicken tenders. The efforts have started to pay off for the chain, which has recorded three consecutive quarters of same-store sales growth.
“In the current quarter, we have increased our margins and the business model is healthy overall,” Williams said. “The brand has become even stronger and healthier.”
El Pollo Loco also grew rapidly during his tenure. When it started in March 2024, the chain was in only six states, she said. And if it opened nine restaurants last year, El Pollo Loco plans 18 to 20 new establishments by the end of 2026.
Investors like the company’s trajectory. Shares of El Pollo Loco have soared 44% over the past year. THE S&P500 increased by more than 15% over the same period.
His return coincides with a difficult time for the restaurant industry. Burger and taco chains are facing soaring beef prices. Consumers are dining out less often to save money, which has increased competition among restaurants.
El Pollo Loco has also faced increased competition as restaurants seek to capitalize on the growth of 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 grown 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 sales in the United States, with a 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 talks about wanting to eat a little better and really thinking about your choices,” Williams said. “Everyone loves fried chicken…However, in terms of what you can eat every day, grilled chicken is simply a better option.”
News of the expansion comes as El Pollo Loco shakes up its management.
The company announced in a regulatory filing Friday that Damon Thomas will join the company as chief operating officer. He joined the company Shake the cabin.
Tara Hinkle was also recently named director of development for the channel. She previously held positions at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks before joining the company in July.
Correction: This story has been updated to reflect that Williams said the company’s brand has become stronger and healthier. A previous version misquoted it.
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