El Pollo Loco vs Chick-fil-A Franchise Comparison

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

Start-Up Costs and Fees
 
El Pollo Loco Franchise
Chick-fil-A Franchise
Investment $900,000 - $1,755,000$582,360 - $2,025,400
Franchise Fee $40,000$10,000
Royalty Fee 2%-3%-4%-
Advertising Fee --
Year Founded 19751965
Year Franchised 19801967
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee --


Business Experience Requirements
 
El Pollo Loco Franchise
Chick-fil-A Franchise
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.

*Looking for a full-time, hands-on business opportunity. *Have a proven track record in business leadership. *Have successfully managed your personal finances. *Are a results-oriented self-starter interested in growing a business. *Are prepared to have no other active business venture.


Financing Options
 
El Pollo Loco Franchise
Chick-fil-A Franchise
  In-House/3rd PartyIn-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
 
El Pollo Loco Franchise
Chick-fil-A Franchise
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) -
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)

Open Monday to Saturday Closed Sundays

Expansion Plans
 
El Pollo Loco Franchise
Chick-fil-A Franchise
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 Chick-fil-A

It all started in 1946 when Truett Cathy opened his first restaurant, The Dwarf Grill, in Hapeville, Georgia. Credited with inventing the boneless breast of chicken sandwich, Truett founded Chick-fil-A, Inc. in the early 1960's and pioneered the establishment of restaurants in shopping malls with the opening of the first Chick-fil-A Restaurant at a mall in suburban Atlanta in 1967. Since then, Chick-fil-A has steadily grown to become the second largest quick-service chicken restaurant chain in the United States. With over 1565 locations in 39 states and annual sales of more than $3.5 billion, Chick-fil-A is still privately held and family-owned. With 43 consecutive years of positive sales growth, Chick-fil-A has set itself apart by pioneering innovations and delicious products, including the ever-popular Chick-fil-A Chicken Sandwich and most recently the new Chick-fil-A Spicy Chicken Sandwich. The Chick-fil-A franchise opportunity represents an exceptional offering in the quick-service restaurant industry. For an initial financial commitment of $10,000 for franchise agreements with an effective date after December 31, 2014, selected franchisees (who we call Operators) are granted the rights necessary to operate a franchised Chick-fil-A Restaurant business. Effective January 1, 2015, each franchised Operator will have the option to transfer his/her rights and interests under the franchise agreement to a business entity formed and organized by the franchised Operator for the purpose of owning and operating his/her franchised Chick-fil-A restaurant business. The Chick-fil-A franchise opportunity requires that the individual be free of any other active business ventures and operate the Restaurant on a full-time, hands-on basis. Chick-fil-A Operators must successfully complete an extensive, multi-week training program prior to commencing operation of a franchised Chick-fil-A Restaurant business. With additional development courses and franchise support available, Chick-fil-A Operators are equipped to handle decisions and reap the rewards of a challenging business.

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