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Updated RecentlyEl Pollo Loco vs Rex's Chicken Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of El Pollo Loco vs Rex's Chicken 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 | $196,000 - $593,000 |
| Franchise Fee | $40,000 | $25,000 |
| Royalty Fee | 2%-3%-4% | 6% |
| Advertising Fee | - | - |
| Year Founded | 1975 | 1951 |
| Year Franchised | 1980 | 1976 |
| Term Of Agreement | 20 years | 20 years |
| Term Of Agreement | 20 years | 20 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. | Rex actively searches for candidates with a strong background in business management. |
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 | - |
| Support | Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
| 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) | Beautiful Brands will have available for the franchisees a complete Grand Opening and on going Local Store Marketing program. |
| 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) | At least one owner or a designated manager must be involved on a full-time basis and must be responsible for the day-to-day operations and management. |
Expansion Plans |
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| US Expansion | Yes | - |
| Canada Expansion | No | - |
| International Expansion | No | - |
Company Overviews
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%.
About Rex's Chicken
Bite-size chicken. King-size opportunity. As a Rex Chicken franchisee, you get a proven menu built around a unique and popular product. In addition, you get a rich, experience-based restaurant concept that’s entertaining, memorable and marketable to a worldwide audience. As a Rex franchisee you will receive support in these specific areas: * Facility planning on site location and architectural design * Specifications for fixtures, equipment, and leasehold improvements * Assistance in site selection and lease negotiation * Corporate training for Owner/Operator and Director of Operations/General Managers * Kitchen/ Back of the House Workflow design * Ongoing support from members of the Training and Operations Team * Ongoing updates for increasing profitability * Products with high industry demand * Efficiency in all systems * Favorable national contracts with suppliers of goods and services * Operating manuals, policies, procedures, and business management systems. Beautiful Brands is actively seeking qualified candidates to develop between 3-10 locations. We are not currently offering single unit franchise opportunities. However, we may grant a single unit for a non-traditional location or a small market that we determine cannot support additional Rex locations.