Record-breaking Sales At New Locations Show Hearty Consumer Appetite For El Pollo Loco In New Markets

IRVINE, CALIFORNIA (Thursday, October 07, 2004) - The verdict is in: America officially has a new flame.

El Pollo Loco, the nation’s flame-grilled chicken leader with more than 320 locations, now has strong evidence that its fresh, fast casual food concept can not only thrive outside of its Southern California comfort zone – it can flourish. El Pollo Loco’s newest franchise location, which opened in Hayward, California (Northern CA) on Sept. 15, broke all the chain’s sales records in its first seven days, including El Pollo Loco’s previous first-week sales record earned at its McAllen, Texas location that opened in July of 2002.

Earlier this year, El Pollo Loco announced a major campaign to identify experienced, multi-unit restaurateurs to fill its expansion pipeline and help drive the future unit growth of the company outside of its core Southern Californian market. Already, the campaign has generated favorable results, with a multi-unit development agreement in Chicago and Denver , and continuing interest from entrepreneurs in Phoenix , Houston and additional markets.

“The first-week sales mark has been set and broken three times in the past two years by locations outside of our core market,” said Stephen E. Carley, president and CEO of El Pollo Loco, Inc. “That’s powerful testament to El Pollo Loco’s draw in markets throughout the country. Our food enjoys broad demographic appeal. As consumer demand for fresh, bold and flavorful foods continues to grow, we will continue to bring our concept to the scores of raving fans we have beyond Southern California .”

El Pollo Loco (the ‘Crazy Chicken’ in Spanish) has thrived on the West Coast for nearly 25 years. The company has in place an aggressive plan to target markets outside its traditional territories whose demographics match the areas where El Pollo Loco has had strong consumer followings. The El Pollo Loco location in Hayward , CA is the 7 th to be opened by Coastal Valley Enterprises, a group of savvy restaurateurs/entrepreneurs who sought and seized the lucrative franchise opportunity.

Mike Wildman, Director of Franchise Operations for El Pollo Loco, said he was pleased but not surprised by the group’s record-breaking first week in Hayward , CA. “The restaurant was operating the first seven days as if it had been operating for a long time. The franchisees executed the opening process perfectly, and that was a strong factor for setting the new record for the first-week sales mark.”

About El Pollo Loco

Founded in 1975 in Mexico , El Pollo Loco has been serving its authentic menu in the United States for nearly 25 years, including its famous citrus-marinated, flame-grilled chicken with fresh salsas, warm tortillas, and an assortment of signature sides. Through the years, El Pollo Loco has kept its menu fresh with a broad array of entrees that include its signature Pollo Bowl ®, Pollo Salads, specialty burritos and quesadillas. El Pollo Loco now offers a full range of the chain’s signature menu items, including two, three and four-piece chicken meals, specialty chicken burritos, Pollo Bowls®, Salad Bowls, tacos al carbon, tostada salads, hand-rolled taquitos and more. Also available are complete family meals. All food is prepared fresh every day.

Currently, 321 El Pollo Loco restaurants operate throughout the country, including 140 corporate and 181 franchised locations. El Pollo Loco, Inc. is a privately-held company owned by American Securities Capital Partners, L.P. and company management.

This news release contains forward-looking statements about, among other items, the sales, revenues, products, consumer acceptance, growth rates and growth and franchising potential of El Pollo Loco, Inc. The statements reflect management's current expectations regarding future events. Risk factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to, food-borne-illness incidents; increases in the cost of chicken; our dependence upon frequent deliveries of food and other supplies; our vulnerability to changes in consumer preferences and economic conditions; our ability to compete successfully with other quick service and fast casual restaurants; our ability to expand into new markets; our reliance in part on our franchises; and our ability to support our expanding franchise system; the possibility of unforeseen events affecting the industry in general. Statements about El Pollo Loco, Inc.’s past performance are not necessarily indicative of its future results. El Pollo Loco, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as the result of new information, future events or otherwise.

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