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Current Position:Home » News » Frozen & Deli Food » Topic

El Pollo Loco Joins Fray Of Fast Food Makeovers

Zoom in font  Zoom out font Published: 2012-11-09  Authour: NANCY LUNA   Views: 26
Core Tip: The Costa Mesa-based chain is rolling out prototype stores in Orange County. Others making changes include McDonald's, Rubio's, Del Taco and Wendy's.
At a new El Pollo Loco store in Fullerton, employee Laura Hernandez scoops the fleshy ripe meat from five Hass avocados, tosses them in a bowl and smashes the green goodness with salt, pico de gallo, fresh lemon juice and avocado salsa.
El Pollo Loco
She'll also cut dozens of crescent-shaped slices from the avocados.

In one day, she'll go through 72 avocados.

A year ago, that labor-intensive prep work didn't exist at El Pollo Loco. Restaurants kept cost down by using pre-made guacamole from an outside supplier. Salads and burritos were never topped with fresh avocado slices.

But after suffering through staggering losses during the recession, Costa Mesa-based El Pollo Loco is turning the ship. This year, the chain began overhauling its image by focusing on higher quality foods and restaurant makeovers. By the end of 2012, 55 El Pollo Loco restaurants will sport a new contemporary look.

Stores getting facelifts feature exhibition kitchens, bright orange booths with comfortable padding, Hacienda-inspired light fixtures and front-lit menu boards with more food images. The makeover comes as fast-food chains such as McDonald's, Rubio's, Del Taco and Taco Bell undergo similar enhancements.

Irvine-based Taco Bell added the upscale Cantina Bell menu this year, while McDonald's and Lake Forest-based Del Taco continue to develop sleek modern stores.

"The competition has stepped up its game when it comes to facilities," said Mark Hardison, El Pollo Loco's vice president of marketing. "We know that our guests are in those restaurants and they have expectations as to what a [modern fast-food] restaurant should look like."

Besides Fullerton, Orange County restaurants in Laguna Hills and Huntington Beach incorporate the new features. In 2013, the 398-unit chain plans to remodel 100 more locations, including restaurants in Cypress, Buena Park, Costa Mesa, Fullerton and Lake Forest.

Hardison called the investment "substantial," but declined to reveal the exact costs for the capital improvements.

At each revamped store, grills are visible to guests as they order their food. Larger windows shed more light on the colorful orange and blue hues of the dining room. The salsa bar, normally located in the dining room, is now at the front counter.

Relocating the salsa bar helps workers do a better job refilling empty salsa bowls and keeping the bar clean, Hardison said. "It allows us to be more attentive," he said.

Besides making the guacamole in-house, the chain is now brewing its own tea and making its avocado salsa from scratch. In recent years, the avocado salsa was made using pre-packaged ingredients to save costs, Hardison said.

"Business got in the way of making great food," he said.

During the recession, the chicken chain lost its way.

One of its biggest fumbles came in 2010 when El Pollo Loco introduced steak. That year, the company spent a large portion of its marketing dollars pushing the beef item – a move that kept chicken out of the spotlight. The muchmocked "Feel the Mexcellence!" marketing campaign also missed the mark with consumers.

"That was a misfire," Hardison acknowledges.

Over the last two years, El Pollo Loco has closed 18 restaurants. Most were outside California. None were in Orange County. Last year, the chain reported a $38.6 million net loss for the 12 months ended March 30, 2011 – the last financial disclosure made by the company while it held public debt.

Today, Hardison said, the privately-run chain doesn't reveal its sales. However, after restructuring, the company's financial outlook is looking up, he said.

"We are seeing strong growth in same-store sales and transactions," Hardison said.

Today, El Pollo Loco also boasts a new motto: "Crazy you can taste."

Hardison said the message is an effort to set the company apart from new competitors like Irvine-based Taco Bell.

In an attempt to attract fresh-Mex customers, Taco Bell introduced the Cantina Bell menu earlier this year. Celebrity chef Lorena Garcia developed the more sophisticated fast-food menu of bowls and burritos, which contains fancier ingredients such as black beans, seasoned white rice, citrus-herb marinated chicken, cilantro dressing, and roasted corn salsa.

"Taco Bell is taking a page from our playbook," Hardison said.

In the coming months, Hardison said El Pollo Loco customers can expect more food surprises. In the winter, it plans to offer a limited-time lineup of shredded beef bowls, tacos and quesadillas. Next year, salads will also play a prominent role on the menu. The salads, still in testing, will likely feature a higher quality mix of leafy greens and pistachios.

"We think we can take salads to a whole new level," Hardison said.

On Wednesday, customers Pat Cossey and Jodi Small said they liked the clean look of the Fullerton restaurant, which opened in September on Placentia Avenue near Sonic.
"It's more open, airy and bright," said Small, 47, of Irvine. "The colors are appealing."


 
 
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