El Pollo Loco Fights Restaurant Trends

El Pollo Loco Inc., a 413-unit grilled chicken chain, said it faces an uphill battle this year against a 2% drop in customer traffic and competitor discounting.

“As we anticipated, 2009 is proving to be even more challenging with further contraction in the economy, a continuing slowdown in consumer spending, accelerating job losses, and the fiercest competition ever for consumers’ shrinking dollars,” Carley said in a statement.

El Pollo Loco said it would focus efforts in 2009 on designing a less costly restaurant prototype, developing new menu items and promoting value-centric offerings. It plans to open five corporate restaurants in 2009, while franchisees are expected to open seven locations.

For the year ended Dec. 31, the company recorded a net loss of $39.5 million, compared with a year-earlier net loss of $4.0 million. . . The year also included a $10.7 million expense for the settlement of a legal battle over development rights with the El Pollo Loco operation in Mexico. - NRN