El Pollo Loco is preparing to open its first New York City restaurant as the California based chicken chain pursues a much larger national footprint. The first location is expected to open in Queens in the middle of 2027.
The company announced Tuesday that it has completed three development agreements covering 15 restaurants in the New York area. Those restaurants are scheduled to open over the next five years, establishing an East Coast presence for a brand still heavily concentrated in California.
El Pollo Loco was founded in Mexico in 1975 and later opened its first United States restaurant in Los Angeles. Its network has since grown to more than 500 restaurants across 10 states, though California continues to account for most of its locations.
The chain is best known for bone in grilled chicken, but its menu has expanded beyond that signature offering. CEO Liz Williams wants to transform El Pollo Loco into a national chain by expanding along the East Coast before moving back toward the West.
The New York push places the company in a crowded restaurant market while consumers are watching their budgets. El Pollo Loco will also need to develop greater brand awareness as it moves beyond its traditional Southwestern base.
“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,” Williams said. Her assessment reflects both the opportunity created by the brand’s history and the difficulty of competing in unfamiliar markets.
Under Williams, El Pollo Loco has pursued a turnaround centered on modernizing restaurants and adding more convenient menu choices. Wraps and chicken tenders are among the options introduced as the company works to broaden its appeal.
The effort has started producing measurable results, with El Pollo Loco reporting three consecutive quarters of same store sales growth. Williams also said the company expanded margins during the current quarter and described its business model as healthy overall.
“In the current quarter, we’ve expanded margins, and the business model is healthy overall,” Williams said. “The brand has gotten even stronger and healthier.”
The company’s geographic expansion has accelerated since Williams became CEO in March 2024. El Pollo Loco operated in only six states when she started, compared with the 10 states in its footprint now.
El Pollo Loco opened nine restaurants last year and expects to add between 18 and 20 locations by the end of 2026. The New York development agreements add another major component to that broader growth campaign.
Investors have responded positively to the company’s trajectory. El Pollo Loco shares have climbed 44% during the past year, while the S&P 500 gained more than 15% over the same period.
The comeback is unfolding during a difficult period for the restaurant business. Consumers have been eating out less frequently to save money, while burger and taco chains have faced rising beef costs and increasingly intense competition.
Competition has also increased within the chicken category as more restaurant companies chase its growth. McDonald’s and Taco Bell, where Williams previously worked, have expanded their chicken selections in recent years based on consumer market research.
Chicken centered chains are expanding as well, including Dave’s Hot Chicken, Zaxby’s and Raising Cane’s. In 2024, El Pollo Loco ranked as the eighth largest United States chicken chain by sales and held 2.1% market share, according to Barclays.
Williams argues that El Pollo Loco can separate itself through grilled chicken and flavors inspired by Mexican cuisine. “Everyone loves fried chicken … However, in terms of what you’re able to eat every single day, grilled chicken is just a better option.”
The expansion comes alongside changes in the company’s leadership ranks. El Pollo Loco disclosed Friday in a regulatory filing that Damon Thomas will join from Shake Shack as chief operating officer.
Tara Hinkle was also recently selected as chief development officer after joining El Pollo Loco in July. She previously held positions at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks as the chain prepared for its next expansion phase.