Dive Brief:

• El Pollo Loco appointed Liz Williams as its CEO, effective March 11, the company said Tuesday in a press release. 
• Williams will succeed Maria Hollandsworth, who has been interim CEO since Nov. 3 following the departure of Larry Roberts. Hollandsworth has been appointed president and will continue to serve as the chain’s COO. 
• Williams has over a decade of restaurant and franchising experience, most recently serving as CEO of Outfox Hospitality, parent company of upscale convenience store Foxtrot, and a decade in various leadership positions at Yum Brands and Taco Bell.

Dive Insight:

El Pollo Loco hopes its recent brand transformation, including off-premise-focused prototypes and a new loyalty program, poises the chain for rapid growth. Williams is tasked with accelerating its development, and has experience with brand development at Yum Brands, Taco Bell and Foxtrot’s parent company. During her time at Taco Bell, she focused on brand strategy, performance of the international business in 30 countries and helped drive operational improvements, sales and profit growth, according to the press release. 

“Throughout her career, Liz has demonstrated her ability to accelerate growth in food and beverage brands while simultaneously improving financial performance,” William Floyd, El Pollo Loco’s chairman of the board, said in a statement. We believe she has the skills and experience necessary to lead El Pollo Loco as we capitalize on the significant opportunity ahead of us.”

Analyst William Blair said in a report emailed to Restaurant Dive that it is likely that Williams will focus on El Pollo Loco’s franchising development pipeline and push forward more operational initiatives as it works with the new $20 minimum wage in California, where a bulk of its restaurants are located. 

The chain is currently testing various kitchen equipment and technology to boost labor. New holding equipment in test is expected to improve consistency of temperature and taste, Hollandsworth said during the company’s November earnings call. Additionally, the chain is rolling out its salsa processing equipment to improve labor and provide more consistency with this menu item. This rollout is expected to be completed across all stores by the end of this year. It’s also in the process of testing kiosks, expanding the pilot to 20 company-owned locations in Q4.  Hollandsworth said kiosks led to a decrease in restaurant-level labor hours per day. 

The chain, comprised of 490 company-owned and franchised units, has been working on expanding outside of the West Coast. Last year, it opened its second Denver unit. Both of its Denver restaurants performed well last year, “highlighting the strength of the band and the success that is possible as we expand into new markets,” Hollandsworth said.

Franchise revenue was up by 7.5% to $10.3 million during the third quarter largely due to a 1.1% increase in comparable sales, seven franchise openings in prior quarters and four refranchised restaurants, CFO Ira Fells said.