Pollo Tropical closing 30 restaurants
The Fiesta Restaurant Group will close 30 Pollo Tropical restaurants in Texas, Georgia and Tennessee.
Back in October, Pollo Tropical closed 10 of its then 209 locations, most of those in Texas.
On Monday, Dallas-based Fiesta said it was closing all Pollo Tropical locations in Dallas-Fort Worth, Austin and Nashville. Fiesta said it would continue to operated 19 Pollo Tropical restaurants outside its original market of Florida, including 13 in Atlanta and six in Texas.
As many as five closed Pollo Tropicals may be converted to Fiesta’s Taco Cabana brand, the company said.
“Where possible, employees impacted by restaurant closures will be offered positions at nearby restaurants,” the company said in a statement.
“Fiesta’s recent growth initiatives diverted resources from our core markets, and some amount of renewal is required to restore momentum in these markets,” said Richard Stockinger, who was named Fiesta president and CEO in February, in a statement.
Fiesta said preliminary same-store sales for the first quarter ended April 2 showed declines continued at both its brands. Preliminary same-store sales fell 6.7 percent at Pollo Tropical and dropped 4.5 percent at Taco Cabana.
The closures come as part of Fiesta’s “Renewal Plan,” which will include relaunching the Pollo Tropical brand in September and the Taco Cabana brand late in the year.
As of Jan. 1, Fiesta had 177 company-owned Pollo Tropical restaurants and 166 company-owned Taco Cabana restaurants. The company also franchised 35 Pollo Tropical units and seven Taco Cabana locations.