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Below is an in-depth analysis and side-by-side comparison of El Pollo Loco vs Brown's Chicken & Pasta 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 | $155,000 - $2,699,000 |
Franchise Fee | $40,000 | $25,000 |
Royalty Fee | 2%-3%-4% | - |
Advertising Fee | - | - |
Year Founded | 1975 | 1949 |
Year Franchised | 1980 | - |
Term Of Agreement | 20 years | 15 years |
Term Of Agreement | 20 years | 15 years |
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. | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/- |
Start-up Costs | No/No | No/- |
Equipment | No/No | No/- |
Inventory | No/No | No/- |
Receivables | No/No | No/- |
Payroll | No/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 | Brown's requires that the franchisee complete an extensive eight-week training program that covers all areas of business operations, store maintenance procedures, and marketing/advertising. |
Support | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | Brown's provides operational specialists who bring with them technical expertise in all areas of business. We also have a staff of marketing, purchasing and financial specialists to assist you. |
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) | - |
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) | Brown's has designed a complete set of forms to facilitate sales accounting, cash control, inventory control, and cost analysis. You can also work with our cost control department and gain weekly insight into your store's profitability. |
Expansion Plans |
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US Expansion | 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%.
Brown's Chicken & Pasta is committed to controlled expansion of completely new store sites and the redevelopment of our current restaurant locations. This business practice encourages growth of locally based ownership and management of restaurants. All new franchises awarded will actually be two opportunities in one. The company is in an aggressive redevelopment stage as existing Brown's Chicken & Pasta restaurants are being remodeled and re-tooled to incorporate our new CHICAGO WAY sandwich brand. The introduction of CHICAGO WAY sandwiches to our existing restaurant operation has sparked new sales and customer traffic opportunities. Operating within the same site that houses our primary Brown's Chicken & Pasta restaurant concept, the CHICAGO WAY sandwich menu brings new daypart appeal to the location. Brown's traditional business is largely generated through the evening daypart. The CHICAGO WAY sandwich line opens the lucrative lunch and fringe daypart markets to the franchise. All future franchise development will be a combined Brown's Chicken & Pasta and THE CHICAGO WAY as a single dual-concept operation.