El Pollo Loco is planning a New York entry with three franchise partners and a first restaurant targeted for Queens in mid-2027. The company said September 29 that it has agreed to terms for three development agreements covering 15 area restaurants over five years and signed its first regional lease.
One longtime franchise partner and two new partners will lead development. The company has not named them.
The announcement also introduced Damon Thomas as chief operating officer, following senior operations roles at Shake Shack and Raising Cane's. Thomas said he will work with company and franchise teams on operations and systems supporting expansion. Chief Development Officer Tara Hinkle, who joined in July 2026, said the development team is concentrating on site selection and operator support.
The franchise growth baseline#
Franchisees already account for most of the company's anticipated openings this year. In its August 6 earnings release, El Pollo Loco reiterated a fiscal 2026 outlook of 15 to 16 franchise-operated openings and three to four company-operated openings across the system.
Its second-quarter results also show how existing restaurants were performing. For the 13 weeks ended July 1, 2026, systemwide comparable sales rose 3.9% from the comparable quarter ended June 25, 2025. Franchise restaurants posted a 4.5% increase, comprising 5.3% higher average checks and 0.8% fewer transactions. Company-operated comparable sales increased 3.0%, with average checks up 4.2% and transactions down 1.1%.
The comparable-sales measure tracks established restaurants: locations enter the base after 15 months of operation, and stores closed during the period are excluded. Higher checks can reflect menu mix as well as pricing, so the check increases do not measure price changes alone.
Company restaurants generated a 19.5% restaurant contribution margin, up from 19.1% a year earlier. That company-only measure deducts restaurant expenses from restaurant revenue while excluding corporate costs such as general administration and depreciation. It provides no measure of franchisee profit.
From sites to restaurant managers#
El Pollo Loco's 2025 annual report describes the work behind its franchise expansion model. It anticipated investing more resources in recruiting and onboarding franchisees, franchise operations and field marketing to support entry into new markets.
Site selection combines internal development staff with outside real-estate consultants. Their criteria include demographics, daytime population, traffic patterns, visibility and access. Managers and other restaurant employees living near prospective locations also contribute local knowledge.
A committee including senior management must formally review new restaurant sites before approval. The company then monitors restaurant performance to inform subsequent location decisions. Its franchise model, the report says, draws on operators' local expertise while requiring relatively limited corporate capital.
Support extends to preparing restaurant managers. The report describes hands-on operating and management instruction for franchise owners and their managers, led by a trainer certified by the operations group. Trainees must successfully complete that program before they can be assigned to a restaurant as a manager.
Continuing instruction covers management, operations, new products and food safety. Many programs run through Pollo Zone, the company's learning platform, which lets franchise owners see training progress in their restaurants in real time.
QSR Pro Staff
The QSR Pro editorial team covers the quick service restaurant industry with in-depth analysis, data-driven reporting, and operator-first perspective.
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