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Below is an in-depth analysis and side-by-side comparison of El Pollo Loco vs Hurricane Grill & Wings including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $900,000 - $1,755,000 | $491,500 - $1,464,000 |
Franchise Fee | $40,000 | $50,000 |
Royalty Fee | 2%-3%-4% | 6% |
Advertising Fee | - | 4% |
Year Founded | 1975 | 1995 |
Year Franchised | 1980 | 2006 |
Term Of Agreement | 20 years | 10 years+5+5 |
Term Of Agreement | 20 years | 10 years+5+5 |
Renewal Fee | - | - |
Business Experience Requirements |
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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. | Our ideal candidate is someone who wants to run the best restaurant and really be a part of the local community. * The ability to build revenues through building and operating stores effectively. * A strong desire to succeed by building an organization that delivers exceptional customer service. * The ability to effectively recruit, train, motivate and retain people. * The ability to manage finances and keep controllables in line for maximum profitability. * A minimum of $300,000 liquid assets and $500,000 net worth * A minimum of two years of food experience is preferred. |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | * 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 | During your four weeks of training, we will show you how to control food and labor costs using proven systems and procedures that will maximize your investment. On-The-Job Training: 75 hours Classroom Training: 24 hours |
Support | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Franchisee Intranet Platform |
Marketing | Has 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) | Co-op Advertising Ad Templates Regional Advertising Social media Email marketing |
Operations |
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) | Absentee Ownership Allowed Number of Employees Required to Run: 55 |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | No | - |
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%.
Return on investment is the core of our business model. Our team will help you locate and evaluate superior inline and end cap locations based on population, demographics, traffic counts and other pertinent data in order to minimize the initial investment. Our flexible floorplans allow for a wide range of restaurant sizes from 2500 to 4500 square feet or larger, and we will consider retail and restaurant space.
Simple operation is core to our concept. We only require three major pieces of equipment in the kitchen. Because we are focused on return on investment, we may allow the use of second generation restaurant equipment to outfit their kitchens. While this equipment must meet our specifications and be fully operational, this greatly reduces the initial kitchen equipment cost.
During your four weeks of training, we will show you how to control food and labor costs using proven systems and procedures that will maximize your investment.
The Hurricane advantage is simplicity. It is the foundation of everything we do. It is a clear expression of our intentions and our culture: how we look at, manage and plan the business. We are always looking for ways to take the complexity out of the business, with a focus on being the best place to eat in town.
We have proven products and a guest experience that will make you proud to own and operate the next Hurricane Grill & Wings!
We know what works and what doesn't, so we can help you accelerate your knowledge base and move your business forward quickly. Each location is built upon the principles that have made our stores successful: friendly, hardworking people serving simple, high-quality food, made surprisingly fast at a reasonable price.
Add to that our wonderfully designed stores, unique decor and relaxing atmosphere and you begin to see what makes the Hurricane experience so special. We want to ensure that our customers receive the best products in the same tradition that Hurricane has established and is known for.