Trigger Achievement: El Pollo Loco Victory

Issue

Have you ever found yourself looking for a healthy fast food restaurant and found yourself with limited options? I had the same experience when I decided to lead a healthier lifestyle, but I couldn’t find enough fast food restaurants that offered healthy and tasty food options. This issue is very relevant as more and more people become health conscious and want to switch to healthier food options, but the market does not have many accessible and affordable choices.

Relevance of the issue

The issue is becoming more relevant as people become aware of the importance of maintaining a healthy diet. According to a survey in 2020, more than 75% of Americans claim to eat healthier foods than five years ago. Additionally, consumers are looking for healthier and more transparent food options. However, the problem is that there is a shortage of fast food restaurants that cater to these needs, leading to a missed opportunity in the market.

Current solution for the problem

Some fast food restaurants have started offering healthier food options, but these are usually expensive and not readily available to the majority of customers. Also, there are no quick service restaurants that focus heavily on healthy and affordable food. The current situation leaves health conscious people with limited options, which has led to a missed opportunity for companies to tap into this growing market.

Why does the problem exist?

The problem exists because fast food restaurants have a reputation for serving unhealthy, high-calorie meals that are affordable and convenient. As a result, there are no accessible and affordable options for health conscious people who want quick meal options. Additionally, there is a gap in the market as there are limited fast food restaurant chains that specialize in healthy food options, creating an opportunity for entrepreneurs to fill this gap.

Solution / value proposition

Our solution to the problem of lack of healthy and affordable fast food options for customers is to establish a chain of popular El Pollo Loco restaurants that specialize in freshly cooked, healthy and delicious Mexican cuisine. Our restaurant chain will provide an exceptional and healthy alternative to fast food outlets across the country. El Pollo Loco’s core value proposition is to provide a unique dining experience, serving customers with high quality, nutritious and flavorful food. Our menu will use fresh, locally sourced organic ingredients, as a taste-delivery while ensuring good health. We provide our guests with an exceptional dining experience that includes a warm, welcoming, and family-friendly atmosphere that caters to different culinary preferences, including gluten-free, vegetarian, and vegan options. Our franchise is unique because it focuses on exceptional customer service; We pride ourselves on making sure our customers feel valued and appreciated. We recognize that customers want a seamless and fast service experience without delays, especially in a quick service restaurant setting. We have developed efficient operating procedures that provide a seamless experience from the moment the guest enters until they leave.How we solved the problemWe developed El Pollo Loco with the customer’s needs in mind, providing affordable and healthy options for individuals and families. We understand that unhealthy fast food consumption is a widespread problem affecting different age groups across the country. In response to this problem, we decided to create a solution that caters to people who want a healthy and tasty alternative. Our food is wood grilled giving it superior texture, taste and aroma. Our spices and marinade provide poultry with a unique flavor profile unmatched by other fast food chains. Additionally, our variety of side dishes are a complementary selling point for our menu, making our franchise one of a kind.How the solution delights our customersWhen our customers taste our meals, they will savor the freshness of our ingredients, the unique flavor profile and the succulent texture of our wood-grilled chicken. Our customers leave the restaurant satisfied with the delicious meals that have a positive impact on their well-being. Our top notch customer service adds to the satisfaction of our customers. When they walk into our restaurant, they’re welcomed with open arms, and our warm, friendly staff ensure they leave with a full stomach and a smile on their face. At El Pollo Loco, we aim to delight our customers in every way possible, providing healthy options that contribute to their overall well-being and ensuring they enjoy their dining experience in a friendly atmosphere. Our solution is amazing because we curate healthy and affordable fast food options that positively improve the lives of our customers. We strive to provide exceptional customer service, healthy and delicious Mexican cuisine that appeals to individuals of all ages and walks of life.

Market validation

Our market validation for franchisee El Pollo Loco indicates that there is strong demand for affordable, high-quality Mexican cuisine. According to research conducted by IBIS World, the Mexican fast food industry generated billion in revenue in 2020 alone. In California, El Pollo Loco’s home state and largest market, there is immense potential for growth.

Our TAM is estimated at .5 billion, with projections indicating a CAGR of 5.7% over the next five years. Expected revenue per customer is -, with an average of two visits per month.

The market is growing and there is currently no leading competitor that offers comparable quality and affordability. Our market research has shown that customers are willing to pay up to for a meal of similar quality and that there is a strong desire for a family atmosphere we can provide.

• According to Statista, Mexicans and Mexican Americans are the largest minority group in the United States, at 37.7 million people in 2019.
• In 2020, Mexican cuisine was the third most popular cuisine in the United States, with a 20% market share.
• According to a survey conducted by Harris Polling, 87% of respondents enjoy eating Mexican food, with 72% eating it at least once a month.

With our unique selling point of providing high quality food at affordable prices, we are confident that we can attract a large customer base in the United States. Starting a business in this market is a good idea as there is immense potential for growth, and we have identified a gap in the market. We have the opportunity to fill the void by providing customers with a unique and enjoyable experience of delicious food and a family atmosphere.

business model

At our franchisee El Pollo Loco, we plan to generate income through our fast food business. Our strategy is to create an enjoyable and memorable customer experience, while providing high quality and affordable food. We aim to engage customers in our corporate culture, offering unique menu items and offerings, which ensures that customers will continue to return to our restaurants.

We plan to generate revenue from a few sources. First, we plan to sell our signature marinated marinated chicken as a main menu item. Through our extensive market research, we have found that this dish is a favorite among families and is flexible enough to feature in different dishes, making it an ideal product to focus on.

Second, we will be selling a range of classic Mexican side dishes, such as rice and beans, our signature queso, tacos, salads, burritos and delicious desserts.

Third, we will target lunch and dinner crowds. As people start to dine out more, we want our restaurant to be available to them at all times – to make this possible, we also plan to feature breakfast menu items all day.

Finally, we plan to expand further. We want to ensure that customers can easily access our restaurant, and additionally, we will contact modern delivery systems, such as Ubereats or Doordash, to provide delivery services. We also anticipate that we will have multiple franchises and generate revenue from franchise fees.

We have determined that our total revenue will be based on our expected number of customers, average customer spend, and the number of locations we establish. Our franchise model will be structured to attract more customers and increase revenue per location.

A crucial aspect of our revenue generation is ensuring that we keep our operating costs low – this will help us achieve more profit per customer. We plan to achieve this goal by ensuring we maintain quality customer service, minimize food waste and negotiate supplier costs.

Overall, our business strategy is focused on providing an exceptional customer experience, maintaining customer loyalty, and making the franchisee of El Pollo Loco a go-to place for Mexican-American food.

Competition

As a Texas Roadhouse Franchisee , our competitors include other American casual dining establishments such as:

• Applebee
• Chile
• TGI Fridays
• Outback Steakhouse

These restaurants have become popular, catering to families and friends looking for an affordable place to dine. They offer a wide variety of menu options including American cuisine. However, a common problem with these restaurants is the quality of the food, with some menu items being frozen and reheated, leading to a loss of authenticity and taste.

Other competitors may include quick drop chains such as Panera Bread and Chipotle , which offer quick and easy meals to diners on the go. Although these restaurants offer fresh and healthy options, they do not provide the same level of entertainment or atmosphere as we do.

What sets us apart from our competitors is our unique selling point, which is the combination of high-quality, from-scratch meals served in a casual, family atmosphere with lively music, cold drinks and dancing. . No other restaurant offers the same level of entertainment paired with delicious cuisine as we do.

Our competitive advantages include:

• Fresh, made-to-puff dishes that are authentic and taste delicious
• A relaxed, family atmosphere that is welcoming and entertaining
• Lively music, cold drinks and dancing that serve to entertain guests
• Attractive franchise opportunities that offer expansion and growth potential

Our target market is families and friends of all ages who enjoy American cuisine and entertainment. We believe our combination of great food and lively entertainment will appeal to customers looking for a unique dining experience that satisfies both their taste buds and their desire for entertainment.

Overall, our biggest competition is other casual dining and fast food chains that offer American cuisine. However, our unique selling point and combination of high quality food and entertainment is what sets us apart from them and will ultimately attract a new clientele that is looking for something different.

Founding team

At El Pollo Loco-Franchisee, we pride ourselves on having a team with a diverse skill set that is capable of meeting the challenges that come with building a successful restaurant chain. Our team consists of people with years of experience in the hospitality industry, marketing and business management. We believe our team is well equipped to meet this challenge.

John Smith – Founder and CEO

• Graduated with a bachelor’s degree in business administration from the University of California at Berkeley.
• Has over 15 years experience in the hospitality and food industry as a restaurant manager, having worked at well-known chains such as In-N-Out Burger and KFC.
• Successfully managed the turnaround of a failing restaurant and improved profitability by 30% in one year.

Maria Rodriguez – CFO

• Graduated with a bachelor’s degree in accounting from the University of California, Los Angeles.
• Has over 10 years of experience in financial management and reporting, having worked in reputable companies such as Ernst & Young and Deloitte.
• Managed financial reports for several successful companies in various industries including the restaurant industry.

Raúl González – COO

• Graduated with a bachelor’s degree in hospitality management from Cornell University.
• Has over 10 years experience in the hospitality industry, having worked with successful restaurant chains such as McDonald’s and Chick-fil-A.
• Led several cost reduction initiatives within previous organizations resulting in significant financial savings.

Our primary goal is to establish a successful restaurant chain that specializes in providing high quality, wholesome Mexican cuisine in a welcoming, family atmosphere. We have a shared passion for providing an exceptional customer experience that sets us apart from our competitors.

Our team recognizes that there may be skills we lack, but we are committed to continuous learning and improvement. We have identified these skills and taken steps to acquire the necessary knowledge and skills by hiring a diverse group of professionals and consultants.

We firmly believe that our team has the right combination of experience, passion and expertise to make this adventure a huge success. We are ready for the challenges that come with expanding our business to multiple locations and confident that together with our team, we will achieve our goals.

Traction

As a Texas Roadhouse franchisee, we have already made significant progress towards building a successful chain of restaurants across the country. Our traction slide shows evidence of the progress we have made so far, giving investors confidence in our business.

• We have generated significant interest from potential franchisees and stakeholders in our business model.
• We secured locations and identified suppliers for our first restaurants.
• We began to develop our marketing strategies to attract customers to our restaurants.
• We have a plan to establish a total of ten locations over the next three years and fifty locations over the next decade.

Our pull slide also features our metrics for measuring success. Early in our business, we identified critical growth drivers that we continually monitor. These include:

• The number of leads generated from our marketing strategies
• The cost of customer acquisition, which we aim to keep low as we grow our customer base
• The number of customer referrals we receive, highlighting how much our customers enjoy our dining experience
• Customer Lifetime Value, which continually increases due to our strong focus on customer service.

As a result of our progress, we are confident that we are on track to achieve product market fit. Our unique selling proposition of offering delicious high quality meals and stripes, along with lively music and entertainment in a family atmosphere, shows strong market validation, with growing demand for what we offer. Our traction slide demonstrates that the Texas Roadhouse franchisee is a promising business opportunity for investors, poised to fill the market void and achieve significant success in the hospitality industry.

Fund raising

As a Texas Roadhouse franchisee, we are seeking total funding of million to cover the costs of establishing our first ten locations, marketing, and hiring a team of highly skilled professionals. This seed funding will allow us to execute our plans and achieve our milestones.

The funds will be allocated in different areas of the business to ensure the success of our business:

• Location acquisition – We plan to allocate 50% of the funds to secure ideal locations for our Texas Roadhouse restaurants. These locations will ensure high visibility, accessibility and ample parking space.
• Marketing and Branding – To attract and retain customers, we plan to spend 30% of funds on marketing and branding efforts. This includes developing social media campaigns, print ads and radio ads to reach our target audience.
• Team building and operations – To ensure that our customers receive high quality service, we plan to allocate 20% of the funds to build a team of experienced catering staff, training programs and catering operations such as inventory management and customer service.

We are confident that with the allocated funds, we can achieve the following milestones within three years:

• Establish ten locations in key markets across the country.
• Attract and retain a core group of enthusiastic franchisees.
• Build brand recognition and become a household name for quality American cuisine.
• Generate sustainable revenue from all locations and achieve profitability.

With these key goals in mind, we believe this funding request is critical to achieving our vision and long-term success as a Texas Roadhouse franchisee.