Irvine-based El Pollo Loco Inc. is pushing its latest menu addition: chicken tortilla soup.
The Mexican fast-food chain is making the soup every day at its restaurants, according to Karen Eadon, El Pollo Loco’s chief marketing officer.
El Pollo Loco is offering some discounts,charging $1 for the soup or a Mexican Caesar salad with a family meal, or $5.99 for a soup and salad combo.
A marketing campaign recently broke, promoting the deals.
The work includes 15- and 30-second TV spots in Spanish and English airing on the West Coast.
Restaurants are mounting roof banners and window signs for the soup.
El Pollo Loco, which is owned by New York-based equity investment firm American Securities Capital Partners LP, is moving ahead with its plans to sell to Trimaran Capital Partners LLC, also of New York.
The deal, estimated at $400 million, is expected to close by the end of the fourth quarter, the company said.
|
|
El Pollo Loco in San Clemente: company has franchise deals in New York, Northern California, elsewhere |
El Pollo Loco’s sales for the third quarter were $61.6 million, up 9% from a year ago.
Trimaran recently announced a debt financing deal for El Pollo Loco.
The company said it formed EPL Finance Corp., which is slated to combine with El Pollo Loco, and is planning to enter into a senior secured credit agreement for $125 million and offer $150 million of eight-year notes.
El Pollo Loco continues to move on expansion plans.
The company has about 330 restaurants, including 139 that are company run. The rest are run by franchises, primarily in California.
Last year, 25-year-old El Pollo Loco said it planned to add about 130 franchised restaurants in the Southwest, Midwest and East Coast by 2009.
As part of the move, the company opened its first restaurant in Chicago.
El Pollo Loco teased the opening with a marketing campaign.
“We anticipate a strong local following among Chicago’s culturally diverse populations, as well as those seeking fresh, healthy fast-food alternatives,” said franchiser Paul Michaels, who opened the restaurant with Joseph Zappala.
The two plan to open nine more in the Chicago area in the next few years.
The next restaurant is slated to open in early 2006.
El Pollo Loco has restaurants on tap for New York, Oregon, Washington and Texas, where three are slated to open by 2008. One already has opened.
The restaurant chain also recently signed an agreement with Dave Vorpahl to open four El Pollo Locos in Sonoma and Napa counties by 2010.
Vorpahl already operates seven restaurants in San Francisco, Oakland and San Jose.
Vorpahl said in a statement that he joined El Pollo Loco several years back because he was impressed by the company’s first location in Los Angeles and liked its setup, particularly how the chain cooks chicken in front of customers.
“The idea of the freshly prepared foods really appealed to us,” he said.
These and other new El Pollo Loco locations are set to feature a redesigned layout, which the company said aims to appeal to a wider audience in different markets.
The interior of the restaurant has a wall mural and rich colors.
A sound system plays contemporary Latin-influenced music. And there are padded booths and other seating for small and big parties.
Selling Holiday Spirits
Mission Viejo-based MarkeTeam Inc., which works with restaurants and beverage companies to sell more drinks, recently wrapped up a drink menu gig for O’Charley’s Inc., operator of restaurants in the South and Midwest.
The menu promotion pushes O’Charley’s regular beverages and seasonal winter drinks, such as the gingerbread cookie and the candy cane smoothie.
Nashville, Tenn.-based O’Charley’s also owns several other chains, including Ninety Nine Restaurant and Pub.
