Strategies for Success: El Pollo Loco's Expansion and Remodeling Plans for 2026
Discover how El Pollo Loco is accelerating growth through new openings and remodeling efforts in 2026 despite economic uncertainties.
Accelerated Openings and Adaptability
El Pollo Loco's ambitious plans for 2026 involve accelerating its store openings despite the current macroeconomic challenges surrounding tariffs. The chain's CEO mentioned how their flexible format enables the company and franchisees to seamlessly fit into second-generation spaces, taking advantage of restaurant closures by converting them into El Pollo Loco outlets. This adaptability not only allows for cost-effective expansion but also promises improved financial returns as the brand spreads its footprint across the nation.
Remodeling Strategy for Growth
In addition to new store launches, El Pollo Loco is actively engaged in a significant remodeling initiative in 2026, with plans to renovate 60 to 70 restaurants this year alone. The management is strategically remodeling half of the system over the next four years, employing a two-tiered approach. Restaurants will undergo either a low-cost, five-year refreshment or a more extensive 10-year remodel investment. This strategic remodeling effort aims to enhance customer experience, rejuvenate the brand image, and boost overall sales performance.
Financial Performance and Future Projections
Despite a slight systemwide sales decline in the first quarter, El Pollo Loco remains optimistic about quarterly improvements in the coming months. The brand is gearing up for a relaunch on May 15 and plans to introduce new menu items, including quesadillas, during the summer to attract more customers. With a focus on accelerating growth and executing a comprehensive five-point plan that includes enhancing hospitality, refining branding, embracing digital initiatives, and strengthening restaurant-level margins, El Pollo Loco is poised for success in 2026 and beyond.