STRATEGIC PARTNERS
March 24, 2011
Beginning March 28, Costa Mesa, Calif.-based El Pollo Loco is expanding its side dish menu with three new premium items – flame-grilled corn, sweet corn cake and sweet potato fries.
Available at all El Pollo Loco units, the new sides will join the existing premium BBQ black beans and fresh vegetables, as well as the classic sides: rice, pinto beans, mashed potatoes, corn cobbettes, coleslaw, Loco side salad, french fries and macaroni and cheese.
The flame-grilled corn features sweet corn, off the cob, fire-roasted and gently seasoned with chipotle en abodo and lime.
The sweet corn cake features bits of corn baked in. The new sweet potato fries are prepared from seasonally-harvested sweet potatoes that are lightly coated to preserve sweetness.
"Our new premium sides underscore El Pollo Loco’s commitment to flavor innovation and variety," said Mark Hardison, vice president of marketing for El Pollo Loco, Inc. "Never before have we had such a robust selection of sides with 13 different choices. Creating your own special meal at El Pollo Loco has never been more fun or flavorful."
As an added bonus, beginning April 4 and for a limited time, the chain is offering a free large side with the purchase of any family meal. The deal will continue through June 24.
The new side items will be communicated through a multimedia campaign that covers general market and Spanish language television and radio vehicles in select West Coast markets. The campaigns begin April 4.
Additionally, a variety of point-of-purchase materials will be used, including window clings, translites and other in-restaurant and drive-through communication.
El Pollo Loco revenues drop
The extended side line up may be the boost El Pollo Loco needs after financial results for 2010, ended Dec. 29, were dim. EPL Intermediate Inc., parent company of El Pollo Loco, released the results Thursday.
They included an operating revenue of $271.2 million, which is a decrease of $6.5 million, or 2.3 percent, from operating revenue for the year ended Dec. 30, 2009 of $277.7 million. Operating revenue includes sales at company-operated restaurants and franchise revenue.
The decrease in 2010 operating revenue was primarily attributed to a 4.3 percent decrease in system-wide, same-store sales for 2010, compared to an 8.2 percent decrease for 2009.
“As we expected, the economy in 2010 continued to pose challenges for our business, the greatest of which was the disproportionately high unemployment, under-employment and home foreclosure rates in our core markets, and in particular among Hispanics which are a key demographic for our brand,” said Steve Sather, president and CEO of El Pollo Loco Inc.
These challenges caused the chain to offer value incentives, such as the Loco Dollar Menu and the “free cake with the purchase of a 9- or 14-piece flame-grilled feast” promotion.
Sather said the company expects 2011 to be as challenging as 2010 due to continued economic challenges, competition in the industry and disproportionately high unemployment in core markets. In California, where most El Pollo Loco restaurants are located, unemployment was 12.5 percent in January, compared to 9.4 nationally.
Sather said in 2011, El Pollo Loco will focus on quality, service and cleanliness; the development of new menu items that meet consumer demand; compelling advertising; and the development of a new restaurant design that can support growth in a variety of real estate formats.
“Our focus in 2011 is on building a strong foundation so that when the economy comes around, we are poised for growth,” he said.
