Wingstop vs El Pollo Loco Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Wingstop vs El Pollo Loco including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Wingstop Franchise
El Pollo Loco Franchise
Investment $376,300 - $724,200$900,000 - $1,755,000
Franchise Fee $30,000$40,000
Royalty Fee 6%2%-3%-4%
Advertising Fee 4%-
Year Founded 19941975
Year Franchised 19981980
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee --


Business Experience Requirements
 
Wingstop Franchise
El Pollo Loco Franchise
Experience
  • General business experience
    		• We require a minimum of five years of experience as an owner/operator within the restaurant industry. You must also live in the area of development in order to manage the restaurant on a daily basis.

    Financing Options
     
    Wingstop Franchise
    El Pollo Loco Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/No
    Inventory No/YesNo/No
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Wingstop Franchise
    El Pollo Loco Franchise
    Training On-The-Job Training: 139 hours Classroom Training: 48 hours* Seven weeks pre-opening training for franchisee and restaurant managers * Franchise training consultants offering ongoing training programs for crew and management * Complete restaurant-opening support
    Support Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperativesMeetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op advertising, Ad slicks, Regional advertisingHas a proven history of successful marketing Is aligned with award-winning advertising agencies Utilizes a strategic approach to building a strong brand Is focused on driving traffic and sales profitably We provide a full array of targeted advertising tools and marketing plans to build awareness and drive customers into our restaurants through: Innovative marketing and advertising campaign Development and execution of bilingual promotional strategies Product innovation to fuel sustained growth Support for grand openings Marketing plans tailored to each market's needs Effective communication and support of franchisees' needs Access to El Pollo Loco's online LSM toolkit (at franchisees disposal)
    Operations 20% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8 - 10

    Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators)

    		 Franchisees required to buy multiple units/master licenses; 40% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 25

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Wingstop Franchise
    El Pollo Loco Franchise
    US Expansion -Yes
    Canada Expansion NoNo
    International Expansion NoNo

    Company Overviews

    About Wingstop

    Wingstop Franchising LLC is the franchisor. Wingstop restaurants offer chicken wings in a variety of highly-seasoned flavors. They also offer fresh-cut French fries, other foods, and beverages, including beer and wine where legally permitted. A Wingstop franchise entitles the franchisee to operate one restaurant at an approved location.

    Veteran Incentives   $15,000 off first-store franchise fee
    ""      "Entrepreneur

    #42 in Franchise 500 for 2020.
    #22 in Franchise 500 for 2021.






    About El Pollo Loco

    In 1975, Juan Ochoa opened a roadside chicken stand in Guasace, Mexico, he called El Pollo Loco. Ochoa served chicken the same way his mother did, hand-marinating using an old family recipe and flame-broiling. The stand quickly grew in popularity, and over the next four years, Ochoa's family opened 85 restaurants in Northern Mexico. The chain moved into the United States in 1980 with the first restaurant opening on Alvarado Street in Los Angeles, California. El Pollo Loco featured an authentic recipe of fresh chicken marinated in special herbs, spices and citrus juices, and then fire-grilled to perfection. The restaurant quickly became a local favorite. Over the years, El Pollo Loco has added tacos, burritos and salads to its menu, all featuring the Ochoa family's chicken. In 1995, the chain entered into a joint venture with Foster's Freeze to offer soft-serve treats at El Pollo Loco restaurants. Today, the tradition continues with signature dishes that satisfy consumers’ desire for flavorful food that fits well with today's active lifestyles. We're currently fire-grilling marinated chicken in about 400 company and franchise-owned El Pollo Loco restaurants.

    Franchise fees apply to new and existing franchisees with multi-unit development agreements in new markets through March 31, 2018. The initial franchise fee has been cut to $30,000 for the first restaurant and $20,000 for each additional restaurant. The standard franchise fee is $40,000, and $30,000 for secondary units. The initial franchise fee for any restaurant opened in the calendar year ahead of the year in their development schedule will be cut by 50%. And any restaurants opened beyond the multi-development agreement will be eligible for a zero dollar initial franchise fee. Royalty fees have also been reduced for the first time in three years: 2% for the first year, 3% in the second year, and 4% in the third year. The standard royalty fee is 5%.