The encyclopedia · Strategy & Leadership · Strategic decision · 2016–2018
LocoL wanted to fix food deserts with healthy fast food and closed within 3 years
Roy Choi and Daniel Patterson opened LocoL in Watts to prove fast food could be healthy and cheap. Reviews soured and every location closed within three years.
LocoL · 2016-01-18
What happened
Celebrity chefs Roy Choi and Daniel Patterson opened LocoL's flagship location in Watts, a low-income Los Angeles neighborhood, on Martin Luther King Jr. Day 2016 — a fast-food concept built around the premise that cheap, quick food could also be healthy and made from real ingredients, aimed at a 'food desert' with few fresh-food options. The opening drew celebrities including Jon Favreau and Jim Brown, and national press coverage framed it as fast food's conscience finally catching up with its convenience.
The initial excitement faded within months. Reviewers, including a critical New York Times notice, flagged inconsistent food and service, and the customer base skewed toward food-media tourists rather than Watts residents the concept was built for. Choi and Patterson expanded to Oakland and San Jose to diversify revenue and subsidize the Watts store, added more fried items to the menu to chase sales, and raised prices — none of it closed the gap between what the restaurants cost to run and what they brought in.
Oakland's locations closed in 2017. The San Jose and flagship Watts locations both closed in August 2018, with Choi posting publicly that 'the truth is we ran out of money.' The Watts space was converted into a catering kitchen and event space, and a LocoL food truck continued operating after the storefronts shut.
Why it happened
- The concept was built around a social mission — feeding a food desert — that did not by itself generate enough paying repeat customers to cover four locations' costs.
- The customer base that actually showed up (food-media tourists) was different from the underserved-neighborhood audience the business plan and pricing were built for.
- Expanding to Oakland and San Jose to subsidize the struggling flagship spread thin resources across more locations instead of fixing the original site's economics.
- Menu and price changes made mid-stream to chase sales diluted the original healthy-fast-food premise without fixing the underlying traffic problem.
The lesson
A mission does not pay rent. LocoL's food-desert idealism drew press and celebrities to opening day, but not enough repeat customers to cover the cost of keeping the doors open.
Aftermath
The Watts location became a catering kitchen and event space; a LocoL food truck kept operating after the restaurants closed. Choi later relaunched LocoL as a delivery-only virtual restaurant, a much smaller footprint than the original storefront ambition.
Sources
- The Guardian — LocoL was supposed to be the answer to food deserts. What went wrong? (Aug 31 2018)
- Eater LA — LocoL in Watts closes, along with San Jose location, converts to catering kitchen (Aug 22 2018)
- The Mercury News — Celebrity chefs Patterson and Choi shutter LocoL in San Jose (Aug 22 2018)
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