![\"Oreo](\"https:\/\/www.diningandcooking.com\/us\/wp-content\/uploads\/2026\/11\/oreo-digital-social-assets-news-article.png\")
<\/p>\n<\/p>\n
An Oreo dessert platform had strong consumer appeal. | Photo courtesy of Portillo’s<\/p>\n
In Chicagoland, the deep brand love for Portillo\u2019s is a \u201ctowering strength,\u201d says CEO Brett Patterson.<\/p>\n
But outside Chicago, not so much.<\/p>\n
On Thursday, Patterson outlined a strategy to change its approach to growth and to turn around negative sales trends. Patterson, who was named CEO in February, has already started making progress.<\/p>\n
Same-store sales were up 1.4% in the third quarter (the first positive result since 2023). That increase reflected a 2.1% increase in average check boosted by menu price increases, and a 0.7% decline in transactions.<\/p>\n
But Patterson said comparable sales improved sequentially through the quarter, and also into the fourth quarter, as consumers embraced a recently launched Oreo dessert platform, a Char\u2019diniera Dog, and a Dr Pepper Shake.<\/p>\n
Patterson believes the company\u2019s plan to strengthen core fundamentals will deliver annual 2% to 3% same-store sales growth going forward. And Portillo\u2019s upgraded guidance for the year\u00a0saying it expects adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of $98 million to $101 million, compared with earlier projections of $92 million to $96 million.<\/p>\n
But a key part of the chain\u2019s turnaround plan is rethinking the 109-unit chain\u2019s path for expansion outside Chicago.<\/p>\n
One of the first steps is to shutter a \u201cmid- to single-digit\u201d number of underperforming restaurants outside Chicago, mostly in the fourth quarter.<\/p>\n
The company didn\u2019t identify which restaurants would be closed, or where.\u00a0<\/p>\n
Portillo\u2019s has opened seven restaurants this year, all in Texas, with another one scheduled to open in Chicago before the end of the year.<\/p>\n
Portillo\u2019s has had a handful of locations as far away as California for years. But after the chain went public in 2021, it began a push across the U.S. Sun Belt, where population hubs were growing, with Texas as a target market. There are 20 restaurants in Texas, including one in the Dallas-Fort Worth Airport, but the brand has also moved into Florida, Arizona, and Georgia.<\/p>\n
Patterson said the chain has made mistakes in how it was branded outside Chicago.<\/p>\n
In Chicago, consumers know Portillo\u2019s menu, with its Italian beef sandwiches, hot dogs, and that famous chocolate cake. But brand awareness wasn\u2019t translated well in new markets, he said.<\/p>\n
\u201cIf they don\u2019t know what you do, it\u2019s kind of hard for people to figure out,\u201d said Patterson.<\/p>\n
Outside Chicago, the sites were \u201cvery casual-dining like,\u201d said Patterson. Initially, people had to drive too far to reach one, which hurt frequency. Then, as the company aggressively filled in those markets, restaurants suffered from cannibalization.<\/p>\n
Now, going forward, Portillo\u2019s will be much more disciplined about site selection, with four to six restaurants planned for next year, he said.\u00a0<\/p>\n
There\u2019s also a new prototype, which is about 4,600-square feet, about 40% smaller than the average for the brand. It requires only 1.5 acres, as opposed to the typical 3 acres, which will reduce costs.<\/p>\n
\u201cSmaller does not mean less Portillo\u2019s,\u201d added Patterson. The new design has potential for high volumes.<\/p>\n
Nearly 15% of the chain\u2019s restaurants generate more than $1,500 in sales per foot, with a few surpassing $2,000, he said.\u00a0<\/p>\n
Patterson noted that they are not necessarily expecting to see Chicagoland volumes out of the new prototype.\u00a0<\/p>\n
\u201cWe believe the optimized kitchen, more standardized design, and greater site flexibility can improve throughput and productivity while targeting a lower capital investment,\u201d he said.<\/p>\n
After doing a lot of research about Portillo\u2019s consumers, the chain is planning to refine its marketing to better communicate value, and to better reach Millennials with digital experiences and a simplified loyalty program.<\/p>\n
Patterson said he is encouraged by early progress.\u00a0<\/p>\n
But, he added, \u201cOne quarter is not a trend. We have significant work ahead, and our focus is simple: run great restaurants and run this company with the discipline to deliver durable sales and profitable growth.\u201d<\/p>\n
Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.<\/p>\n
\n\t\t\t\t\t\tLisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts.\n\t\t\t\t\t<\/p>\n
View All Articles by This Author<\/p>\n","protected":false},"excerpt":{"rendered":"
An Oreo dessert platform had strong consumer appeal. | Photo courtesy of Portillo’s In Chicagoland, the deep brand love for Portillo\u2019s is a \u201ctowering strength,\u201d says CEO Brett Patterson. But outside Chicago, not so much. On Thursday, Patterson outlined a strategy to change its approach to growth and to turn around negative sales trends. Patterson,<\/p>\n","protected":false},"author":2,"featured_media":79564,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[34934,2726,2725,2723,2770,2724,192,1652],"class_list":["post-79563","post","type-post","status-publish","format-standard","has-post-thumbnail","category-illinois","tag-earnings","tag-illinois","tag-illinois-dining","tag-illinois-food","tag-illinois-grocery-stores","tag-illinois-restaurants","tag-news","tag-real-estate"],"share_on_mastodon":{"url":"https:\/\/vive.im\/@dc\/117567683562594633","error":""},"_links":{"self":[{"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/posts\/79563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/comments?post=79563"}],"version-history":[{"count":0,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/posts\/79563\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/media\/79564"}],"wp:attachment":[{"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/media?parent=79563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/categories?post=79563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.diningandcooking.com\/us\/wp-json\/wp\/v2\/tags?post=79563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}