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Real Estate: A Guide to Ethnic Sites

Chain Leader asked El Pollo Loco CEO Steve Carley for pointers on identifying a site in an ethnic market.

By David Farkas, Senior Editor -- Chain Leader, 4/1/2009

El Pollo Loco restaurant
El Pollo Loco chooses locations with daytime and residential populations.
Chain Leader asked El Pollo Loco CEO Steve Carley for pointers on identifying a site in an ethnic market—something he knows a lot about given that the 416-unit chain has been attracting a chiefly Latino audience for 29 years. Here’s his list of dos and don’ts.

Do:

• focus on convenience. Look at sites from the perspective of how well the location fits consumers’ daily routines.

• have adequate daytime and residential population density. Look for a good mix of rooftops and employment to spur lunch and dinner.

• have adequate parking and access. Easy parking means more frequency.

• have enough room on the potential site for drive-thru stacking.

• have retail synergy. “Daily needs” retail creates another reason for people to visit you.

Don’t:

• fall in love. Look at sites objectively to identify all of the advantages and disadvantages before moving forward.

• overpay. Occupancy costs are a major and controllable part of business profitability. Keep them as low as possible.

• assume you can get everything. Research potential sites extensively to ensure they have the image, parking and drive-thru configuration you prefer.

• underestimate convenience. Overlooking what seems like a few small factors—traffic flow, u-turns, ease of access—will impact frequency.

• assume customers will find you. Work hard to find locations visible to potential guests.

• forget area competition. Research their performance and the quality of their locations.

MORE: Franchisors discover that ethnic and low-income markets suit their expansion plans.

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