Portillo’s is a Food On Demand Outstanding Operator.
When Portillo’s opened in 1963, it sold hot dogs for 30 cents out of a 12-foot trailer. By 1983 it had launched its first drive-thru, arming employees with walkie-talkies to communicate orders to the kitchen. Everything was old-fashioned and quaint. And it worked.
Garrett Kern, president of strategy and culinary at Portillo’s
“I remember going through the drive-thru in the early ‘90s,” said Garrett Kern, president of strategy and culinary at Portillo’s, in an interview. “People spoke in abbreviations. They wrote orders on bags and passed them into the kitchen and a runner would bring out the orders. It was incredible.”
Incredible. But not scalable. Not in the way it wanted. For that it would need an upgrade in technology.
Which it has now. And that is a big reason why the brand is now in nearly 100 locations in 10 states and has plans for many more.
Making off-premises a priority
Back in the walkie-talkie days, most of the brand’s sales were in-store. But today off-premises orders make up 60 percent of its business. And drive-thru looks completely different.
“We have digital-order-taking devices and a kitchen video system to smooth the process,” Kern said. “We are also testing camera technology and AI in a few locations. The technology is helping us analyze how we are greeting guests, taking orders, moving customers through the line.”
Yet there are legacy locations that don’t lend themselves as easily to such tools.
“We do have a relatively older portfolio of restaurants, and the challenge is each location has a totally different layout,” he said. “But in the last few years we have settled on a consistent design that puts the off-premises experience front and center. Little things like making sure that the shelves are built into a place where both team members and guests can access them are important.”
As is accommodating for delivery. It has made adjustments to its operations to remove friction in this process. “We want to make sure that the last-mile logistics is as smooth as possible, and that has meant thinking about everything from store design to back-of-house technology, to make sure we’re delivering accurate on-time orders,” he said.
More than that, it’s also unveiled a new prototype exclusively for off-premises orders.
“We have a design we call Portillo’s Pick-Up, which has a smaller footprint with no dining room,” he said. The 3,750-foot prototype features three drive-thru lanes as well as a pick-up area for orders placed online and through the app. One of the three lanes is dedicated to pre-order pick-up orders. Three of these locations are in operation in Illinois.
Rolling out new rewards
When a brand has such dedicated consumers, who often span generations, that’s a good place to be. But Kern knows not to take a single stomach for granted.
“We recently launched a new loyalty program, which is merged with our in-store kiosks. You can sign up for or log into your rewards account there,” he said. “With each visit you can earn badges to unlock rewards.”
Consumers earn badges based on frequency, including a Seasonal Sipper badge for trying three seasonal shakes and a Frequent Feaster designation for three visits in 30 days. The program works across all ordering channels with no app download required. The brand’s goal is to reach 1.5 million membership enrollments by the end of summer.
“We wanted to make the rewards seamless to sign up for and use,” Kern said. “And we wanted them to be fun.”
An ambitious growth plan
Portillo’s is a Chicago area landmark, up there with Second City and the Michael Jordan statue. But it’s no longer just a regional sensation. It’s been expanding around the country and finding success in new areas, particularly Texas.
“We opened our first store in Houston in November and have three now,” said Kern. “We also have seven stores in Dallas-Fort Worth. It’s been exciting for us to see that we can be successful in other markets.”
Portillo’s has announced plans to grow to 920 locations in the next 20 years. Of those, 800 would be full-scale restaurants while 120 would be pick-up or drive-thru locations.
In its 62 years of existence, the brand has proven it is comfortable adapting to evolving consumer preferences. It’s expanded its menu to include burgers, chicken sandwiches and salads, and has added on all the requisite digital offerings. But it also knows its secret sauce lies in its past.
“People come to Portillo’s for the food but also the nostalgia,” Kern said. “It’s all part of the experience. That’s really the magic of Portillo’s.”
The Outstanding Operators Program highlights 20 innovative brands taking creative paths to success with all things off-premises. Each winner receives a $1,000 charitable donation to its organization of choice and will be recognized on-stage at the 2025 Food On Demand Conference. Register today!
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