El Pollo Loco 2016 Annual Report Download - page 10

Weapprovenewrestaurantsonlyafterformalreviewbyourrealestatesiteapprovalcommittee,whichincludesmostofourseniormanagement,andwemonitor
restaurants’on-goingperformancestoinformfuturesiteselectiondecisions.
Restaurant Design
Afteridentifyingaleasesite,wecommenceourrestaurantbuild-out.Ourtypicalrestaurantisafree-standingbuildingwithdrive-thruservicethatrangesinsize
from2,200to3,000squarefeet.OurHaciendarestaurantdesigncreatesacolorful,bright,andcontemporaryrestaurantenvironment.Theexteriorsofour
remodeledrestaurantsfeatureasignaturegrillarchitecturalelementthatreinforcesthecorebrand,andourinteriorsfeaturelargeexhibitionkitchensthatallow
customerstowatchourgrillmastersprepareourfire-grilledchicken.Ourcolorfulandcontemporarydiningrooms,withseatingforapproximately70people,
includecomfortableboothsandchairs,whilelargewindowsandsoftlightingfillourrestaurantswithlightandwarmth.
Ournewrestaurantsareeitherground-upprototypesorconversions.Weestimatethateachground-upbuild-outofarestaurantrequiresanaveragetotalcash
investmentofapproximately$1.4to$1.5million,netoftenantallowances.Weestimatethateachconversionrequiresatotalcashinvestmentofapproximately
$0.8to$1.1million.Onaverage,ittakesapproximately12to18monthsfromspecificsiteidentificationtorestaurantopening.Inordertomaintainconsistencyof
foodandcustomerservice,aswellasourcolorful,bright,andcontemporaryrestaurantenvironment,wehavesetprocessesandtimelinestofollowforallrestaurant
openings.
Ourrestaurantsareconstructedinapproximately12weeks,andthedevelopmentandconstructionofournewsitesistheresponsibilityofourDevelopment
Department.Aconversiontypicallytakesapproximatelytwomonthstocomplete.Severalrealestatemanagersareresponsibleforlocatingandleasingpotential
restaurantsites.Constructionmanagersarethenresponsibleforbuildingourrestaurants,andseveralstaffmembersmanagepurchasing,budgeting,scheduling,and
otherrelatedadministrativefunctions.
Restaurant Management and Operations
Service
Weareextremelyfocusedoncustomerservice.Weaimtoprovidefast,friendlyserviceonasolidfoundationofdedicated,driventeammembersandmanagers.
Ourcashiersaretrainedonthemenuitemsthatweoffer,andoffercustomersthoughtfulsuggestionstoenhancetheorderingprocess.Ourteammembersand
managersareresponsibleforourdiningroomenvironment,personallyvisitingtablestoensureeverycustomer’ssatisfactionandmonitoringthefreshsalsabarand
beveragestationforcleanlinessandanamplesupplyofproducts.
Operations
Weutilizesystemsthatareaimedatmeasuringourabilitytodelivera“bestinclass”experienceforourcustomers.Thesesystemsincludecustomersurveys,
mysteryshopperscores,andspeed-of-serviceperformancetrends.Theoperationalresultsfromallofthesesourcesarethenpresentedonanoperationsdashboard
thatdisplaysthemeasuresinaneasy-to-readonlineformatthatcorporateandrestaurant-levelmanagementandfranchiseescanutilizeinordertoidentifystrengths
andopportunitiesandtodevelopspecificplansforcontinuousperformanceimprovement.
Infiscal2015weimplementedseveralinitiativesintendedtoimprovespeedofserviceandtheoverallcustomerexperienceinourrestaurants.Theseincluded
system-wideimplementationsofamoreefficientcenter-linelayout,simplifiedproductbuilds,streamlinedpoint-of-saleentry,andtheintroductionofguestpagers
inallcompany-ownedrestaurants.
WemeasuretheexecutionofoursystemstandardswithineachrestaurantthroughourcommitmenttoourRestaurantAssessmentProgram(“RAP”).RAPaudits
areconductedineachrestauranttwiceannually,ormaybemorefrequentbaseduponrestaurantperformance.Additionally,wehavefoodsafetyandquality
assuranceprogramsdesignedtomaintainthehigheststandardsforthefoodandthefoodpreparationproceduresthatareusedbybothcompany-operatedand
franchisedrestaurants.Weemploythird-partyauditorsthatperformourRAPandfoodsafetyrestaurantaudits.
Managers and Team Members
Eachofourrestaurantstypicallyhasageneralmanager,anassistantmanager,twotothreeshiftleaders,andtwoteamleaders.Therearebetween15and35team
memberswhoprepareourfoodfreshdailyandprovidecustomerservice.Toleadourrestaurantmanagementteams,wehavearealeaders,eachofwhomis
responsibleforeightto12restaurants.Overseeingthearealeadersarethreedirectorsofoperations.Thevicepresidentofoperationsleadsourcompany-operated
restaurants,managingsales,profitability,andcustomerservicetargets.
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