While nearly every quick-service chain chain is going after the Letter Generations, El Pollo Loco is betting big on families.
During a conference call with investors, the Costa Mesa, Ca.-based chicken chain said that the brand is going back to its roots by going after its most loyal customers: Hispanic families.
“We are increasing our intensity and focus around our product pipeline to broaden and deepen our appeal to families through innovation and better for your offerings,” CEO Bernard Acoca said.
Acoca announced the company’s new family-first marketing strategy, as well as other operational initiatives after the Southern California chain reported a 0.9 percent decrease in system-wide same store sales for the second quarter ended June 27. Total revenue at the chain edged up 0.6 percent to $106.2 million. Net income dropped to $5.1 million, down from $7.8 million during the same period, last year.
Breaking down the comps, the chain saw a 1.6 percent decrease in same-store sales at company-operated restaurants, and a 0.3 percent decrease at franchise units.
Acoca, who came to El Pollo Loco in March, said the numbers were in line with expectations. But, he added: “We are not satisfied with them, and are working hard to do better.”
To improve relevancy, Acoca said the company will be making a major push with families in 2019. Some changes have already underway, including the recent addition of more family dinner offerings.
“We believe the impact of these changes can be seen in positive comps in July,” he said.
During the quarter, the chain struggled with growth in non-core markets such as Texas.
Among the main issues: complex operations tied to menu offerings.
As such, the company plans to roll out a new menu board design aimed at making ordering easier, and emphasizing the company’s core product: bone-in fire grilled chicken.
The company plans to enhance functionality with its mobile app, including order and pay ahead features, and the ability to “gift” El Pollo Loco to friends or family members. The company has expanded its third party delivery partnership with DoorDash to roughly 80 percent of the company’s 480 restaurants.
In addition, the company is testing self ordering kiosks in Los Angeles.
Contact Nancy Luna at [email protected]
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