Intense Competition: The quick-service and fast-casual restaurant segments are highly competitive, with numerous established and new concepts vying for market share. El Pollo Loco faces competition from other chicken-focused chains, Mexican-themed restaurants, and general fast-casual brands, which could impact sales and profitability.

Rising Operating Costs: Increases in the cost of key food ingredients, particularly chicken, and rising labor costs due to minimum wage increases or a tight labor market, can compress profit margins and necessitate price increases that may deter customers.

Food Safety and Quality Concerns: Any real or perceived issues related to foodborne illness, food quality, ingredient sourcing, or public health scares could severely damage El Pollo Loco's brand reputation, lead to decreased sales, and incur significant legal and operational costs.