El Pollo Loco Signs Deals for 15 New York Restaurants

El Pollo Loco has closed three development agreements covering 15 restaurants in the New York area over the next five years, the company announced on Tuesday. The first location will open in Queens in mid-2027, marking the California chain's entry into New York City as it pushes to become a national player.

The move is the boldest step yet in a turnaround led by CEO Liz Williams, who joined in March 2024 when the chain operated in just six states. It now operates in 10. El Pollo Loco opened nine restaurants last year and projects 10 to 18 new locations by the end of 2026.

Founded in Mexico in 1975, El Pollo Loco opened its first U.S. restaurant in Los Angeles. The majority of its more than 500 restaurants remain concentrated in California. The chain is best known for its bone-in grilled chicken, though the menu has expanded.

Williams wants to take the brand beyond its Southwestern stronghold. The plan: open restaurants on the East Coast and then work back toward the West, she said.

The chain faces a stiff test in New York. It must build brand awareness in a crowded market where consumers are watching their budgets. "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.

The expansion carries financial momentum. El Pollo Loco has reported three straight quarters of same-store sales growth under Williams, who has focused the turnaround on modernizing restaurants and adding more convenient menu options such as wraps and chicken tenders.

"In the current quarter, we've expanded margins, and the business model is healthy overall," Williams said. "The brain has gotten even stronger and healthier."

Investors have rewarded the trajectory. Shares of El Pollo Loco have climbed 44% over the last year, compared with a gain of more than 15% for the S&P 500.

The comeback comes amid a rough stretch for the restaurant industry. Burger and taco chains face soaring beef costs, and consumers dining out less frequently have intensified competition between eateries.

The chicken category itself is getting crowded. McDonald's and Taco Bell — Williams' former employer — have expanded their chicken offerings in recent years, driven by consumer market research. Chicken-focused chains are also growing quickly, from newcomer Dave's Hot Chicken to Southern brands like Zaxby's and Raising Cane's.

In 2024, El Pollo Loco ranked as the eighth-largest chicken chain by U.S. sales, with 2.1% market share, according to Barclays.

Williams argues the chain's grilled chicken and Mexican-inspired flavors set it apart in a field dominated by fried offerings. "Everyone is talking about wanting to eat a little better and really thinking through their choices," Williams said. "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 news coincides with a leadership shake-up. The company said in a regulatory filing on Friday that Damon Thomas will join as chief operating officer from Shake Shack. Tara Hinkle was recently named chief development officer after roles at The Coffee Bean & Tea Leaf, Taco Bell and Starbucks, joining the company in July.

With new operators, fresh capital confidence and a beachhead in Queens, El Pollo Loco is betting that grilled chicken can win on the East Coast before the fried-chicken giants crowd it out.