--- title: "El Pollo Loco Eyes Biggest Expansion Push in Years" url: https://burnaze.com/article/c3badcff-9692-4054-a4b0-1990945d323d source: "QSR Magazine" original_url: https://www.qsrmagazine.com/story/el-pollo-loco-eyes-biggest-expansion-push-in-years/ author: "Ben Coley" category: "Chicken" industry: "Restaurants" segment: "Chicken" topics: ["Development & multi-unit"] published: 2026-11-12T17:47:26.000Z modified: 2026-11-12T18:01:22.556Z image: https://www.qsrmagazine.com/wp-content/uploads/2026/11/elpollolocorestaurant-1.jpg --- # El Pollo Loco Eyes Biggest Expansion Push in Years **TL;DR:** El Pollo Loco plans to open 25-30 locations in 2027, with two-thirds outside California, including a debut in New York City. *By Ben Coley, originally published in QSR Magazine on 2026-11-12. [Read the original](https://www.qsrmagazine.com/story/el-pollo-loco-eyes-biggest-expansion-push-in-years/).* ## Key facts - El Pollo Loco expects to open 25‑30 restaurants in 2027, with about two‑thirds outside California. - Same‑store sales rose 5% in Q3, the fourth straight quarter of positive comparable sales. - Digital sales accounted for 31% of systemwide sales in Q3, up from 27% a year earlier. ## Story El Pollo Loco is preparing to accelerate restaurant development in 2027, with plans to open as many as 30 locations as improving sales performance attracts franchisees and creates opportunities to take the fire-grilled chicken brand into new markets. The company expects to open 25 to 30 restaurants next year, compared with a projected 18 to 20 in 2026. Roughly two-thirds of the new locations will be outside California. The expansion includes an anticipated debut in New York City, where the chain has secured agreements for 15 restaurants over the next five years. ## Sales performance and growth Systemwide same-store sales increased 5 percent in the third quarter, marking the fourth consecutive quarter of positive comparable sales. Traffic rose 0.7 percent, and restaurant contribution margin reached 18.4 percent, within the company’s long-term target of 18 to 20 percent. ## Menu innovation and new offerings Menu innovation has been a significant contributor to the performance. The third quarter featured Loaded Quesadillas in Queso and Street Corn varieties, featuring citrus-marinated, fire-grilled chicken breast. Priced below $10 individually or $10.99 as a combo, the products attracted incremental purchases without displacing sales of existing quesadillas. The company also introduced its Chatacoffee beverage lineup, featuring horchata, iced coffee, and cold foam. A Caramel Apple variation followed in late September. The beverages have helped increase average checks and offer an opportunity to capture additional afternoon traffic. Additional innovation is planned for 2027, including crunch salads, deluxe wraps featuring grilled and crispy chicken, and a line of grilled chicken sandwiches. The company is also gaining traction among younger consumers, with improvements in customer reach and visit frequency. Williams attributed the progress to portable menu offerings, competitive pricing, and the chain’s evolving brand messaging. ## Digital and loyalty initiatives Digital sales, including orders through the company’s app, website, and kiosks, accounted for 31 percent of systemwide sales during the quarter, up from 27 percent a year earlier. Loco Rewards membership increased nearly 11 percent year-over-year. Members now account for 14 percent of restaurant visits and visit twice as frequently as nonmembers annually. The company has used exclusive promotions to boost engagement. The company plans to continue using targeted offers, including weekly Loco Friday promotions, two-for-$5 Taco Tuesdays, and an upcoming 12 Days of Pollo holiday event. New York represents one of the most significant opportunities in the pipeline. Franchise partners Al and Liz Amiri and Mina Behboudi have signed a lease for the brand’s first Queens restaurant, targeting an opening in mid-2027. The group already operates El Pollo Loco locations in Southern California and Denver. Williams sees the New York debut as an opportunity to establish distribution infrastructure that could eventually support expansion along the East Coast. El Pollo Loco also expanded into Idaho earlier this year, opening restaurants in Meridian and Nampa. Additional third-quarter openings occurred in Dallas, Lubbock, Albuquerque, and Ceres, California, each utilizing a second-generation restaurant property. ## Expansion strategy and incentives To support development, the company has adjusted its franchise incentives for 2027, reducing them in California and established expansion markets but increasing support in new territories where operators face additional startup and distribution costs. The company is seeking to support that expansion without sacrificing the restaurant profitability improvements achieved over the past two years. Food and paper costs declined 30 basis points to 24.4 percent, despite approximately 2 percent commodity inflation during the quarter. Labor expenses held steady at 30.4 percent, with wage inflation below 1 percent. Occupancy and other operating expenses increased 20 basis points to 26.7 percent, driven by delivery and mobile ordering fees, utilities, repairs, and maintenance. The company recorded an effective menu price increase of 3.9 percent compared with the prior year. Williams indicated that future margin improvements could come from operational efficiencies, including moving certain food preparation processes upstream to simplify kitchen operations, improve consistency, and free employees to spend more time serving customers. The company also upgraded its Pollo Zone training platform to improve employee onboarding and preparation for new menu launches. Early results indicate that restaurants completing the training are delivering better order accuracy. El Pollo Loco recently appointed Damon Thomas as COO bringing experience from Shake Shack and Raising Cane’s. Q3 revenue increased to $126.3 million from $121.5 million a year earlier. Net income decreased to $6.9 million, or 23 cents per diluted share, from $7.4 million, or 25 cents per share. Adjusted EBITDA declined to $17.1 million from $17.4 million. The company reiterated its full-year adjusted EBITDA outlook of $68 million to $70 million, with results expected near the midpoint. El Pollo Loco also completed 21 restaurant remodels during the third quarter, bringing its year-to-date total to 45, including 23 company-operated locations and 22 franchised restaurants. --- Originally reported by Ben Coley, QSR Magazine (https://www.qsrmagazine.com/story/el-pollo-loco-eyes-biggest-expansion-push-in-years/). Summarized by Burnaze (https://burnaze.com/article/c3badcff-9692-4054-a4b0-1990945d323d).