Emerging Brands

The family-owned Porto's Bakery & Cafe in Los Angeles readies its next generation

This iconic 50-year-old brand with soon-to-be seven units is preparing for the next half century with a long-needed shift into the digital age.
Porto's unit
The most recent Porto's to open in Los Angeles is in Northridge. Next stop: Anaheim, Calif. | Photo courtesy of Porto's.

As Porto’s Bakery & Café nears its 50th anniversary, CEO Raul Porto Jr. is thinking about the future.

The iconic six-unit chain was founded in 1976 by Raul Porto’s mother Rosa Porto, who left Castro’s Cuba with her husband, Raul Porto Sr., and their three children to start a new life in California. At the time, Rosa couldn’t get a job as a baker, because no one would hire a woman. So she started making cakes out of her house and quickly built a loyal following.

That business—which became the growing Porto’s restaurant brand—has become an integral part of the fabric of Los Angeles, with cafes that have lines out the door on weekends.

Now run by Rosa’s three children (including Raul Jr.), a seventh location is scheduled to begin construction in Downtown Disney next year, and it will be the first full-service variation of the brand with a full bar.

Raul Jr. is also considering further moves outside the Los Angeles area, including possible locations in the Inland Empire to the Southeast of the city, and then perhaps San Diego and Las Vegas.

Doing all that, however, has required Porto’s, the business, to catch up with modern technology, Raul Jr. said.

Before the COVID shutdown, Porto’s was primarily a walk-in, order-at-the-counter business, which had worked well for the first 40 years. The chain had a strong catering division, but guests had to phone in orders and come in to pick up.

When COVID closed the restaurants temporarily, Porto’s—like most restaurants, really—was forced to figure out digital ordering and delivery, and figure it out fast.

For reasons even Raul can’t fully explain, demand for Porto’s menu of potato balls, Cuban sandwiches, celebratory cakes and pastries absolutely exploded during the pandemic, he said. And though the chain had a basic online ordering system, and partnered with Uber Eats and DoorDash, it still required staff members to input each order into the point-of-sale system.

“It was brutal,” said Raul. “After COVID every restaurant was going crazy. Now we’re finally getting our bearings.”

This year, Porto’s brought in tech partner Tillster to enhance the chain’s digital ordering systems. Orders that come in through Porto’s website or third-party delivery channels now go directly in the POS system seamlessly.

The system also helps with inventory. Each Porto’s location has a full bakery operation, so the chain can now plan to make, say 1,000 cakes on a weekend, and designate a certain number for delivery. But if demand shifts during the day, the restaurant can decide whether to make more, or perhaps shift products from one channel to another.

These are moves most larger chains and multiconcept groups have made over the past few years, but smaller operators, like Porto’s, are catching up and it has been a game changer, Raul said

The move has opened the door to build catering sales, for example. And now Porto’s could launch an app—something that Raul previously didn’t see as necessary. But with about 30% of sales coming from digital channels, he said he realizes Porto’s customers are changing.

Social media has helped drive in younger diners with different expectations, Raul said. For example, beverage sales have doubled, with new offerings like the Iced Strawberry Matcha Green Tea Latte and a Yuzu Lemonade with Guava.

The chain has also kept prices positioned for value, despite higher labor costs. A dozen meat-stuffed potato balls (easily enough for three or four) is under $16, for example, and sandwiches like the slow-roasted pork with Cuban garlic sauce and pickled red onion on a fresh-baked roll is under $10.

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A third generation of the Porto family is stepping up to the plate, including Raul’s son chef Adrian Porto, who graduated from Johnson & Wales and worked for Hillstone Restaurant Group and the fine-dining restaurant Otium in Los Angeles before joining the family business. Several of Adrien’s cousins are also now involved and learning every aspect of the operation.

Raul said he is inspired by other family-run companies like In-N-Out Burger that have grown slowly and strategically, while maintaining strict control.

Rosa Porto passed away in 2019 at age 89. Raul Sr. died earlier this year at age 92. Raul and his sisters, Beatriz (Betty) Porto and Margarita Navarro, have been running the business fully for roughly two decades. He hopes the next generation will remain mindful of how it all started.

“We’ve been doing this for nearly 50 years, and it started with our mom,” he said. “We’re trying to stay true to our culture and heritage.”

But Porto’s can still embrace change. Recently a staffer sent Raul a photo of one of the bakeries. In the photo, all of the bakers were women.

“Girl power,” he laughed. “My mom, if she could see this, she’d be smiling.”

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