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EXPANDING LIKE CRAZY; EL POLLO LOCO HATCHES GROWTH PLAN.


Byline: Greg Hardesty The Orange County Register

El Pollo Loco El Pollo Loco is a fast-food restaurant chain and Mexican grilled chicken franchise. "El Pollo Loco" is Spanish for "The Crazy Chicken".

Juan Francisco Ochoa started the restaurant in Guasave, Mexico, in 1975.
 will open 32 restaurants this year in California, Arizona and Texas, officials announced recently, with nearly 20 percent of the new restaurants in the San Fernando Valley San Fernando Valley

Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills.
 and Ventura County.

``Our goal is to build up our brand in existing markets,'' said Brian Berkhausen, vice president of development at the Mexican-spiced chicken chain.

Irvine-based El Pollo Loco's growth spurt growth spurt Pediatrics A period of rapid growth in middle adolescence; ♀ ↑ ±8 cm/yr ±age 12; ♂ ↑ ±10 cm/yr ± age 14; GS is orderly, affecting acral parts–ie, hands and feet grow before proximal regions,  is being fueled by healthy sales and the stronger financial footing of parent Advantica Restaurant Group Inc., which emerged from Chapter 11 bankruptcy last year and is also spending millions to update two of its other chains, Denny's and Coco's.

``El Pollo Loco has been deserving of expansion for several years - they've had a nice run of upticks in sales and profits,'' said Randall Hiatt, president of Fessel International, a restaurant consultancy in Irvine.

El Pollo Loco also is taking advantage of a rival's woes. Since November, Boston Market Boston Market (known before 1995 as Boston Chicken), headquartered in Golden, Colorado, is a chain of American fast-food restaurants. Founded in December 1985 in Newton, Massachusetts, the chain grew rapidly in the early and mid-1990s, filed bankruptcy in the late 1990s, and , which is in Chapter 11 bankruptcy reorganization, has closed 42 locations in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . El Pollo Loco has snatched up three of those sites and is looking to purchase or lease more.

El Pollo Loco will grow to nearly 300 restaurants from 265 by the end of the year. It has 140 restaurants in Los Angles County and will add stores this year in Van Nuys, Burbank and San Fernando San Fernando, city, Argentina
San Fernando (săn fərnăn`dō), city (1991 pop. 144,761), Buenos Aires prov., E Argentina. It is a district administrative center in the Greater Buenos Aires area.
. In addition, it's adding eateries in the Ventura County communities of Thousand Oaks Thousand Oaks, residential city (1990 pop. 104,352), Ventura co., S Calif., in a farm area; inc. 1964. Avocados, citrus, vegetables, strawberries, and nursery products are grown. , Newbury Park and Simi Valley Simi Valley (sē`mē, sĭm`ē), city (1990 pop. 100,217), Ventura co., SW Calif. in an oil, fruit, and farm region; laid out 1887, inc. 1969. .

Berkhausen could not estimate the total cost of the expansion.

In the most recent quarter, sales at company-owned El Pollo Locos increased 5.9 percent from a year ago, to about $296,000 per restaurant. Franchise-owned units saw a 7 percent increase, to $216,000.

Total sales in the first quarter were flat, at $32.3 million, but sales at stores open at least a year rose about 6 percent.

SPREADING ITS WINGS

The pace of new restaurant openings at El Pollo Loco has increased dramatically in the last five years.

1994: 2

1995: 10

1996: 14

1997: 12

1998: 21

1999: 32

YEAR BY YEAR

1975: Juan Francisco Ochoa opens his first roadside chicken stand, called El Pollo Loco.

1979: El Pollo Loco has 85 restaurants in 20 northern Mexico cities.

1980: Ochoa opens the first American El Pollo Loco on Alvarado Street in Los Angeles.

1983: Denny's Inc. purchases El Pollo Loco's U.S. operations. Ochoa remains owner of the Mexican operations.

1987: TW Services Inc. (now Advantica Restaurant Group Inc.), one of the largest food services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and  companies in the United States, purchases Denny's and El Pollo Loco.

1991: El Pollo Loco opens its 200th restaurant.

1993: El Pollo Loco expands its traditional menu and introduces six new burritos.

1995: El Pollo Loco announces a joint venture with Foster's Freeze to begin offering soft serve treats at its restaurants.

1997: In March, El Pollo Loco signs its second-largest franchise agreement, which calls for Arizona Colorado Enterprises LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
 to open 65 new restaurants over five years in the Arizona and Colorado markets.

CAPTION(S):

Photo, Box, Chart

PHOTO (Color) This El Pollo Loco fast food restaurant in Granada Hills is one of 140 locations in Los Angeles County. More will be built this year.

John Lazar/Daily News

BOX: YEAR BY YEAR (See text)

CHART: SPREADING ITS WINGS (See text)
COPYRIGHT 1999 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Article Details
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Title Annotation:Business
Publication:Daily News (Los Angeles, CA)
Article Type:Statistical Data Included
Date:May 27, 1999
Words:557
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