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El Pollo Loco Promotes 400th Restaurant

Costa Mesa-based El Pollo Loco Inc. is giving away prizes to mark the opening of its 400th restaurant.

The Mexican restaurant chain said through Aug. 3 it plans to give out scratch and win game cards to customers at its restaurants.

Prizes range from chicken meals to a $400 El Pollo Loco gift card.

For the past four years, El Pollo Loco has been expanding, opening restaurants east of the Mississippi River.

“The opening of our 400th restaurant is a major milestone in the history of our brand and represents our momentous journey from West to East,” El Pollo Loco Chief Executive Steve Carley said.

El Pollo Loco has 406 restaurants in several states, including California, Arizona, Nevada, Washington, Colorado and Massachusetts. Most are franchised, with 164 owned by the company.

Most recently, the company went into Utah and Virginia.

In the next year, El Pollo Loco plans to open restaurants in Nevada, Oregon, New Jersey, Missouri and Virginia.

Last year, El Pollo Loco raised $45 million in private equity funding from Los Angeles firm Freeman Spogli & Co. to help drive the national expansion.

New York-based private equity firm Trimaran Capital Partners owns the majority of El Pollo Loco.

Like other restaurant operations, El Pollo Loco is dealing with tough times. High fuel and food costs have pushed up prices and squeezed consumers.

El Pollo Loco saw a 1.8% gain in sales at restaurants open at least a year in the first quarter, helped in part by higher prices.

The chain also reported a 6.5% rise in first-quarter revenue to $71.2 million.

“We had a slowdown in traffic, which we made up for in pricing,” Carley said. “We don’t like that. Sometimes it’s unavoidable. But we are very sensitive to it.”

Even with higher prices, El Pollo Loco’s operating income was down 17% to $6.4 million in the first quarter. Several factors contributed, including: a $2.4 million rise in product costs, a $1.4 million increase in wages due to a minimum wage hike in California and higher training costs, and an increase in gas prices and advertising.

El Pollo Loco recently also bought small electric cars, which are decorated with the company’s logo and branding, to promote the restaurant’s delivery and catering.


Following the Work

Call it a sign of the times.

Tustin-based advertising shop Brainsaw said it has watched nearly every client bring some aspect of its advertising in-house, whether it was copywriting, media buying and planning, research or video services.

But instead of just sitting back and watching work walk, Brainsaw started a consulting service to help clients do things themselves.

“On the surface it seems crazy for an ad agency to encourage their clients to create in-house creative departments,” said Tim Fuhrman, chief strategy officer.

But the move will help companies “continue to build their brands and the bottom line without having to go dark in this challenging economic climate,” Fuhrman said.

It also enables Brainsaw to charge freelance fees, which is enticing for companies that don’t want to make a big upfront commitment.

Often in tight times businesses trim advertising first.

The service, called In-House Toolbox, includes consulting on department organization and workflow management, freelance copywriting and design, media buying and planning and vendor auditing.


Gear Monkey’s Web Site

Gear Monkey production house in Orange just revamped its Web site.

The shop says it added more information on equipment and made searching and online ordering easier.

Gear Monkey shoots jobs and rents or sells equipment, such as cameras, lighting, monitors and more.

The shop recently wrapped up several projects, including a weeklong shoot for shoemaker DVS Shoes Co. of Torrance.

Gear Monkey also worked with Los Angeles-based ad shop i-Mobius on a project for Canon Inc. printers. The shop provided the crew and equipment for the shoot, which was filmed in Santa Monica.

Recently, Gear Monkey teamed up with Orange-based Post Factory, which handles post production, so the two can lure more work by being a one-stop-shop for companies.


Bits and Pieces:

Irvine-based ChopShop just wrapped up some work for the 2008 Orange County Fair. The production shop produced, directed and edited a television spot with help from agency of record Blue C Advertising in Newport Beach and Hispanic shop of record al Punto Advertising Inc. in Tustin. ChopShop produced two 30-second versions, one in English and the other in Spanish Tustin-based Echo Media Group hired an executive. The public relations shop said Lisa Mendenhall recently joined as vice president.

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