El Pollo Loco CEO Larry Roberts is optimistic in regards to the model’s progress, each in models and gross sales, given the progress the chain has remodeled the previous yr since he took over. Throughout a presentation on Monday morning on the ICR Convention in Orlando, Roberts described a number of such efforts. Among the many largest is a extra intentional concentrate on youthful shoppers, outlined as 18-32.
“We predict we’ve an amazing alternative with that shopper base. For the final yr and a half we’ve puzzled how we attraction to these youthful shoppers, and we consider that genuine, more healthy grilled and never fried meals ought to attraction to that shopper base,” he mentioned. “We’re going to search for that youthful shopper beginning with the menu and our LTO technique.”
For instance, Roberts pointed to the chain’s birria de res, launched final yr. Birria is a conventional Mexican stew sometimes made with goat meat that El Pollo Loco put its personal spin on for American shoppers utilizing beef. The dish has seen vital progress prior to now two years, and birria tacos have been essentially the most Googled meals on the earth in 2021. Roberts mentioned the product did “phenomenonally effectively amongst youthful shoppers” and elevated utilization. . He predicts that beef may turn into an even bigger focus for the grilled hen model.
“The LTO menu and platforms we can be launching are robust and a number of other objects may very well be everlasting. This yr, we can have beef for no less than half the yr after which we are going to name if it may be everlasting,” he mentioned. “I’m optimistic that it may be achieved. Customers purchase rather a lot. I am excited in regards to the objects we’ve that may drive gross sales ranges.”
El Pollo Loco has additionally shifted its advertising and marketing focus to focus on this youthful demographic, lowering its TV spend from 80-85% to 50% and rising its digital and social media spend to 50%. TikTok is a precedence channel, Roberts mentioned.
“Not solely have we shifted our media extra to social media, however we’ve turn into extra disciplined and detailed about what we do on these platforms. It must be the fitting kind of media for shoppers on these platforms,” he mentioned.
On the digital facet, El Pollo Loco plans to “fully revamp” its app and loyalty program this yr.
“That is crucial if you wish to attraction to youthful shoppers,” Roberts mentioned. “We have been among the many first at QSR to launch a loyalty app, however we’ve to maintain evolving as a result of it is tremendous aggressive. That is the place the change is occurring.”
Menu, advertising and marketing and digital items would be the model’s largest gross sales drivers this yr, executives predict. Operational enhancements are additionally a serious focus, as the corporate plans to recruit new franchisees and obtain single-digit internet new unit progress. Many of those enhancements started in early 2022, together with menu simplification and job redistribution. Many extra are anticipated this yr because the chain lately appointed a brand new COO, Maria Hollandsworth.
“The large ones are coming within the subsequent three to 6 months, like a brand new sauce processor and cleaning soap tanks, which make it simpler for grill masters to scrub grills and grills,” Roberts mentioned. “These two issues mixed are price about two hours of labor a day.”
El Pollo Loco can also be testing new kiosks and dishwashers. These simplification efforts have helped increase the chain’s worker retention charges. After a difficult finish to 2021 and early 2022, total work has returned to optimistic on the firm.
“We’re in an excellent place from an employment perspective and now we’re at some extent the place all eating places are operating all hours of operation and on all channels each day. We nonetheless have a couple of the place I want to have extra workers as a result of we’re paying extra additional time than we wish, however total our staffing continues to enhance,” Roberts mentioned.
The corporate will stick to those efforts because it targets new unit progress of 5% this yr, together with new markets equivalent to Colorado, Seattle and Kansas Metropolis.
“An important factor is on the operations facet. You can’t enter a brand new market and never execute. It isn’t thrilling. It isn’t attractive, however it’s a must to have well-defined methods and processes,” Roberts mentioned. “There aren’t any direct rivals on the market. There isn’t any motive why we shouldn’t be profitable in getting into new markets.”
Contact Alicia Kelso at [email protected]