Table of Contents
History of El Pollo Loco
Motivations for Expanding Internationally
Alternative International Expansions
Justification for Expanding to Australia
Australia: Region of Interest
Religion and Language
Issues Related to Management
Political and Social
Cultural Dimensions Analysis for Success
Current and Historical Marketing Practices
Four P’s of Marketing
Effects of Advertising in Australia
Opportunities for El Pollo Loco in the Australian Market
Developing Practices for El Pollo Loco in Australia
Hiring & Training
Retention & Compensation
Foreign Trade Policies
Proposed Organizational Structure
History of El Pollo Loco
The journey of the crazy chicken began on the roadside of Mexico’s Pacific Coast in a small town of Guasave in 1975 by a man named Juan Francisco Ochoa and now El Pollo Loco has its headquarters in Costa Mesa, CA. The mesmerizing aroma of the fresh chicken cooking on the open grill is how El Pollo Loco became the local’s favorite spot in Guasave. Their chicken stand featured an authentic family recipe for their fresh chicken marinated in special herbs, spices, garlic and fruit juices and finished off with a perfection of fire-grilled chicken.
Once El Pollo Loco’s stand became the local’s favorite in Mexico, through the years of 1975-1979 the restaurants rapidly grew by opening 85 restaurants in 20 cities throughout Northern Mexico. With having much success in Northern Mexico they decided to cross the border to the United States and open their first restaurant in Los Angeles, California on Alvarado Street. Not only were Juan’s restaurants growing in Mexico and now in California, a company known as Denny’s Inc. acquired the American restaurants in 1973. With Denny’s Inc. acquiring the American restaurant chain the Ochoa family did come to an agreement with Denny’s, that the Ochoa’s would continue to operate their restaurants in Mexico. Through the years Denny’s Inc., sold Denny’s and El Pollo Loco to TW Services, Inc. in the year 1987. After having a successful run Advantica Restaurant Group, Inc. which was once TW Services sold their rights of El Pollo Loco in 1999 to a private New York – based equity investment firm known as American Securities Capital Partners, L.P. and in 2005 Trimaran Capital Partners a private New York based asset management firm completes the acquisition of El Pollo Loco.
Through the years of the acquisitions El Pollo Loco also acquired new items to their menu, just not their open grilled marinated chicken known as their signature dish pollo asado. From their stands in Mexico, El Pollo Loco became known as a fast-food restaurant chain specializing in Mexican-styled grilled chicken in the United States. In October 1993 the lunch sales soared up due to debuting six new burritos to their menu. With Taco Bell and Del Taco being their biggest competitors a good way to make El Pollo Loco authentic to their Mexican style was to add a self- serve fresh salsa bar in 1993 in all their restaurants. El Pollo Loco also introduced the Pollo Bowl in February 1996, which contained a bowl filled with rice, beans, onions, cilantro, salsa and their famous pollo asado. Their biggest advertisement was fewer calories and only 10g of fat for their pollo bowl, which was in a time when people tried to start watching their calories. Over the years El Pollo Loco added a variety of other items such as tacos, quesadillas, salads and desserts like flan, churros and ice cream to keep the Mexican-style tradition.
El Pollo Loco operates in fives states through the United States that are currently in operation which are all located in the Southwest; Nevada, Arizona, Utah, Texas and California. “As...
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