El Pollo Loco
Interested in selling your El Pollo Loco NNN property or El Pollo Loco ground lease property and was wondering what you can get for it in today’s changing market?
Contact us for a complimentary broker opinion of value for your off-market El Pollo Loco NNN property for sale or El Pollo Loco ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your El Pollo Loco NNN property or the inclusion of a El Pollo Loco ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market El Pollo Loco properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of 2024, El Pollo Loco operates approximately 495 locations across the United States. The majority of its restaurants are located in California, with additional locations in Arizona, Nevada, Texas, Utah, Colorado, and Louisiana.
Revenue and income
In 2023, El Pollo Loco reported total revenue of approximately $470 million. Net income for the year was approximately $30 million, reflecting steady performance in the fast-casual restaurant segment.
Future plans
El Pollo Loco plans to continue expanding its footprint through a franchise-led growth strategy, particularly in Texas, Arizona, and other high-growth markets. The company is also focused on menu innovation, digital ordering enhancements, loyalty program expansion, and operational efficiency to drive long-term growth.
Corporate vs. franchise
El Pollo Loco operates under a mixed ownership model. Approximately 70% of locations are franchised, while the remaining restaurants are corporate-owned. Franchisees typically pay an initial franchise fee of around $40,000 and ongoing royalty fees of approximately 4% of gross sales, along with marketing contributions.
Additional information El Pollo Loco Properties
El Pollo Loco was founded in 1975 by Juan Francisco Ochoa in Guasave, Sinaloa, Mexico.
The brand is known for its fire-grilled citrus-marinated chicken, prepared fresh in-store daily.
El Pollo Loco entered the U.S. market in 1980, opening its first American restaurant in Los Angeles, California.
The company is publicly traded on NASDAQ (Ticker: LOCO) and is headquartered in Costa Mesa, California.
El Pollo Loco History
El Pollo Loco traces its origins back to 1975 in Mexico, where founder Juan Francisco Ochoa introduced a distinctive fire-grilled chicken recipe that quickly gained popularity. The brand expanded into the United States in 1980, capitalizing on growing demand for fresh, flavorful, and healthier fast-casual dining options.
Throughout the following decades, El Pollo Loco expanded across the western and southwestern United States, blending authentic flavors with an efficient quick-service model. Today, El Pollo Loco is recognized as a leading fast-casual Mexican-inspired restaurant brand, known for quality ingredients, fresh preparation, and strong customer loyalty.
Why Invest in Ground Lease and NNN Lease of El Pollo Loco?
Investing in El Pollo Loco ground lease or triple net (NNN) lease properties offers several advantages for real estate investors.
1) El Pollo Loco NNN Property Investment: Stable income
El Pollo Loco’s established brand and loyal customer base provide consistent restaurant traffic, supporting reliable rental income under long-term NNN or ground lease structures.
2) El Pollo Loco NNN Property Investment: Established tenant
With decades of operating history and a publicly traded platform, El Pollo Loco represents a creditworthy and recognizable tenant, reducing vacancy and default risk.
3) El Pollo Loco NNN Property Investment: Low management responsibility
Under NNN and ground lease agreements, El Pollo Loco typically assumes responsibility for taxes, insurance, maintenance, and operating expenses, minimizing landlord involvement.
4) El Pollo Loco NNN Property Investment: Favorable lease terms
Leases often feature long initial terms with rent escalations, providing predictable cash flow and inflation protection.
5) El Pollo Loco NNN Property Investment: Real estate value
Restaurants are commonly located in high-traffic retail corridors and strong demographic markets, supporting long-term real estate value and potential appreciation.
Pros and Cons of El Pollo Loco Ground Lease and NNN Lease Investment
Pros:
Stable income supported by a well-known fast-casual brand.
Established tenant reduces vacancy and lease default risks.
Minimal landlord management responsibility.
Long lease terms provide income stability and growth potential.
Cons:
Lease renewal risk upon expiration.
Dependence on restaurant performance and consumer dining trends.
Competition within the fast-casual and QSR restaurant sector.
Limited landlord control under NNN or ground lease structures.
Exposure to broader economic and real estate market conditions.
As with any NNN investment, thorough due diligence—including site selection, lease structure, tenant performance, and market fundamentals—is essential. Consulting with real estate professionals and financial advisors can help ensure alignment with investment goals and risk tolerance.