El Pollo Loco acts: Ray Perry, chief operating officer of Irvine-based El Pollo Loco, thinks his restaurant chain will benefit from parent corporation Flagstar Cos. Inc.'s decision to sell its Canteen food and vending operations to Compass Group PLC. The sale, announced on Wednesday, “will allow Flagstar to reduce its debt and provide capital for growth, be it new restaurant growth or remodeling of restaurants,” Perry said.
Perry is betting that some of the additional capital to be available at Spartanburg, S.C.-based Flagstar will flow through to El Pollo Loco. “Flagstar was never comfortable with the contract feeding and vending side of the business,” Perry said. “The company has good leaders on the restaurant side, and this will let them concentrate on what they’re best at.”