El Pollo Loco 2015 Annual Report Download - page 9

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Table of Contents
healthier and convenient alternative for mothers and families looking to solve the “dinnertime dilemma” of providing their families with high-
quality meals without investing significant time or money. In fiscal 2014, approximately 28% of our company-operated sales were generated
from family-sized meals.
Inviting Experience That Welcomes Our Customers
. We believe that our new Hacienda restaurant design creates an inviting restaurant
environment. The exteriors of our restaurants feature a signature grill architectural element that reinforces our core brand, and our interiors
feature large, open kitchens that allow customers to watch our grill masters prepare our fire-grilled chicken. Our restaurants also feature
complimentary self-serve salsa bars that are located at the fronts of our restaurants for added convenience. The salsa bars invite customers to
customize their meals with several salsas prepared fresh every day. Our colorful and contemporary dining rooms include comfortable booths and
chairs, while large windows and soft lighting fill our restaurants with light and warmth. Our customers are responding positively to our new
Hacienda design, as comparable restaurant sales have increased on average an additional 3% at remodeled locations. As of December 31, 2014,
we have remodeled over 50% of our restaurant system and expect to have completed the remodeling program by 2018.
We believe that the atmosphere and quality of service that we provide to our customers encourages repeat visits and brand advocacy and drives
increased sales. Our team members are trained to engage with our customers in a genuine way to provide a personalized experience, and strive to
make each experience in our restaurant better than the last.
Well-Developed Operations Infrastructure that Allows for Real-time Control, Fast Feedback, and Innovation . We believe that satisfying our
customers’ dining needs is the foundation for our business, and we have a well-developed operations platform that allows us to measure our
performance in meeting and exceeding those needs. We utilize a state-of-the-art operations dashboard that aggregates real-time, restaurant-level
information for nearly every aspect of our business. The dashboard provides corporate and field management, as well as restaurant-level
operators, with insight into how we are performing both from the customer’s perspective and also through the eyes of experienced internal
auditors. To put the metrics into perspective, we are able to measure current performance against benchmarks derived from a broad selection of
fast casual and QSR brands. At the restaurant level, we use sophisticated technology to constantly monitor key operational data regarding sales
performance, speed-of-service metrics, and food and labor cost controls. The intelligence provided by our operations infrastructure allows both
our company-operated and our franchised restaurant managers to make rapid and objective decisions to maintain our standards for food and
service.
Developing High Average Unit Volumes (
“AUVs”) and Strong Unit Economics One Chicken at a Time.
We believe that our differentiated QSR+
positioning drives restaurant operating results that are competitive with other leading restaurant concepts in both the fast casual and QSR
industry segments. We believe that our restaurant model is designed to generate strong cash flow, consistent restaurant-level financial results,
and high returns on invested capital. In fiscal 2014, our company-operated restaurants generated average annual sales per restaurant of
approximately $1.9 million and restaurant-level contribution margins of 21.9%.
Experienced Leadership
. Our senior management team has extensive operating experience, with an average of over 20 years of experience each
in the restaurant industry. We are led by our Chief Executive Officer, Steve Sather, who joined us in 2006 and was named CEO in January 2011.
Other members of the senior leadership team include Larry Roberts as our Chief Financial Officer, Ed Valle as our Chief Marketing Officer, and
Kay Bogeajis as our Chief Operating Officer.
Our Growth Strategy
We believe that we are well-positioned to take advantage of significant growth opportunities because of our differentiated QSR+ positioning,
signature fire-grilled chicken, disciplined business model, and strong unit
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