El Pollo Loco, a California-based chicken chain founded in Mexico in 1975, is pursuing a national expansion strategy with its entry into the New York market. The company has secured development agreements for 15 restaurants across the New York area to be opened over the next five years, with the first location slated for Queens in mid-2027. This marks a significant milestone for the chain, which currently operates more than 500 restaurants across 10 states, with the majority concentrated in California.
CEO Liz Williams has outlined an expansion strategy that begins on the East Coast before moving westward to establish the brand nationally. The effort comes as El Pollo Loco undergoes a modernization initiative that includes restaurant renovations and menu diversification, introducing items like wraps and chicken tenders alongside its signature bone-in grilled chicken. The chain has demonstrated three consecutive quarters of same-store sales growth, with Williams noting improved margins and overall business health.
Since Williams began her tenure in March 2024, when the company operated in just six states, El Pollo Loco has accelerated its growth trajectory. The company opened nine restaurants in the previous year and projects 18 to 20 new locations by the end of 2026. This expansion has resonated with investors, as company shares have increased 44% over the past year, outpacing the S&P 500’s 15% gain during the same period.
The expansion occurs within a challenging restaurant industry environment, where consumers are dining out less frequently due to budget constraints and major chains face elevated ingredient costs. El Pollo Loco competes in an increasingly crowded chicken category, competing against major brands like McDonald’s and Taco Bell as well as specialized chains such as Dave’s Hot Chicken and Raising Cane’s. According to Barclays data, El Pollo Loco ranked as the eighth-largest chicken chain by U.S. sales in 2024 with 2.1% market share.
The company has also reinforced its leadership structure, appointing Damon Thomas as chief operating officer from Shake Shack and Tara Hinkle as chief development officer, who brings experience from positions at The Coffee Bean & Tea Leaf, Taco Bell, and Starbucks.
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