Two California chicken chains bet big on Texas

California chicken heads to Texas

California-based chains El Pollo Loco and Starbird are both expanding aggressively in Texas, but with very different strategies.

El Pollo Loco is strengthening its already-established presence, while newcomer Starbird is entering the state with a major franchise commitment. Rather than relying on hype, the expansion shows a steady, strategic approach.

Texas is a growth hotspot

Texas continues to attract restaurant brands looking to scale operations quickly. El Pollo Loco plans 18 to 20 new locations in 2026, while Starbird has signed a 36-store franchise deal in the state.

These moves highlight how major cities like Houston, Dallas, and San Antonio offer strong demand, high population density, and ample room for expansion in the competitive fast-casual dining space.

A growing Texas footprint

El Pollo Loco already operates in key Texas markets, including Houston, Dallas, and San Antonio. This established presence provides a strong base for further expansion across the state.

Instead of starting fresh, the company is strengthening markets where customers already recognize the brand. That familiarity can make new openings more successful and reduce the risks often tied to entering completely new regions.

What’s coming in 2026

Plans for 18 to 20 new restaurants in 2026 show a measured growth strategy for El Pollo Loco. Cities like Dallas and El Paso are expected to be part of that expansion.

Rather than expanding too quickly, this approach allows the brand to adjust operations, monitor demand, and maintain consistency. It reflects a cautious but steady path that many restaurant chains now prefer.

Established but still growing

El Pollo Loco’s Texas footprint is already well established, with multiple locations across major metro areas. This gives the company an advantage when adding more stores.

Expanding into familiar markets allows for smoother logistics, stronger supply chains, and a better understanding of local preferences. It also helps ensure consistency, which is often a key factor in long-term customer loyalty.

A distinct menu identity

El Pollo Loco is known for its citrus-marinated, fire-grilled chicken, along with tacos, burritos, bowls, and salads. This menu blends bold flavors with the convenience of fast casual.

The focus on grilled chicken helps it stand apart from traditional fried chicken competitors. That difference gives customers an alternative option while still staying within the comfort zone of familiar, approachable menu items.

Menu innovation matters

As it grows, El Pollo Loco continues adding new menu items to appeal to a wider range of customers. This helps keep the brand relevant in a competitive market.

Menu innovation is a common strategy across fast-casual dining. It allows chains to test trends and introduce variety while still maintaining their core offerings that longtime customers expect and return for regularly.

Expanding beyond California

While California remains its home base, El Pollo Loco is expanding into other states, including Texas and neighboring regions.

This type of geographic growth reflects a broader industry trend in which regional chains aim to become national brands.

By entering markets like Texas, companies can reach larger audiences while testing how well their concept translates beyond their original customer base.

A new player enters Texas

Starbird, another California-based chicken chain, is preparing for its first major push into Texas through a significant franchise agreement.

Entering a new market like Texas is a major step for any brand. It requires adapting to local tastes, competition, and expectations while still maintaining the identity that made the concept successful elsewhere.

A 36-Store deal

The expansion plan for Starbird includes 36 locations across Houston, Austin, and San Antonio. This represents a major commitment to the Texas market.

Large franchise deals allow brands to grow quickly by partnering with experienced local operators. These partners bring regional knowledge that can help ensure new locations connect with local customers and perform successfully over time.

What makes Starbird different

Starbird focuses on chicken that is never frozen, antibiotic-free, and hand-breaded with gluten-free flour and spices.

This approach appeals to customers who want fast food with a slightly more premium feel. By emphasizing ingredient quality and preparation methods, the brand aims to stand out in a crowded field of chicken-focused restaurants.

Why Texas matters

Leadership at Starbird has described Texas as a strategically important market for future growth. The state offers both scale and diversity.

With large urban populations and varied dining preferences, Texas offers brands the opportunity to test how well their concept performs across different audiences. Success here can often signal potential for broader national expansion.

In other news, Georgia moves toward a tax bill that could wipe out billions in breaks for companies.

A major franchise move

The 36-unit agreement is the largest franchise deal to date for Starbird, with development expected to begin in 2027.

Deals of this scale often reflect confidence in a brand’s long-term potential. They also signal that investors and operators believe the concept can compete successfully in new and highly competitive markets like Texas.

And while this restaurant makes its mark, Five Guys franchise locations close in several states as costs rise.

Do big expansion plans make you trust a brand more? Tell us in the comments.

This slideshow was made with AI assistance and human editing.

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