It’s safe to say that Portillo’s holds a special place in Michael Osanloo’s heart.
“This is a true, factual story,” he said. “I got my driver’s license. I got my best friend in the car, a Pontiac Bonneville station wagon with wood paneling along the side. We drove to the Portillo’s in Downers Grove,” Ill.
“This was my first restaurant trip in a car on my own,” he added. “I was nervous to try to do a drive thru, so we parked and went in.”
Osanloo didn’t know it at the time, of course, but Portillo’s would one day play a much bigger role in his life. This week, the P.F. Chang’s CEO was named the chain’s newest chief executive.
And so, when he takes over for the retiring Keith Kinsey in October, Osanloo will essentially be going home.
“I have deep, personal roots in the Chicago area,” he said. “My parents are here. I want to raise my kids in the Chicago suburbs. Chicago still feels like home. And I don’t know of a better restaurant brand than Portillo’s.”
Osanloo had spent most of his life in the Chicago area, having worked with the Kraft Heinz Company before he moved to Scottsdale, Ariz., in 2015 to take the top job at P.F. Chang’s.
His decision to take the Portillo’s job was motivated in part by upcoming changes at the company he is currently running, which has been for sale in recent months.
“I have nothing but affection, admiration and love for P.F. Chang’s,” he said. “It has great ownership. The company’s best days are ahead of it. But P.F. Chang’s is in the process of being sold. I suspect that the sale process will be wrapped up in the not-too-distant future and will have a good outcome for investors.”
In taking over at Portillo’s, Osanloo will take over management of one of the most unique concepts in the restaurant business, a chain that has broken a lot of rules on its way to success.
It has a wide-ranging menu, featuring everything from burgers to Chicago-style hot dogs to Italian beef to pasta.
The chain builds massive restaurants that generate nearly $7 million in average unit volumes, or about twice that of Chick-fil-A.
“It’s a business that defies belief,” Osanloo said. “The lines you see outside Portillo’s, the way the business performs, the obsessive following with guests. And it’s early enough in its evolution that it will be a ton of fun to help Portillo’s.”
The chain was sold to the private equity firm Berkshire Partners in 2014 for about $1 billion, an eye-popping valuation at the time. The chain has since grown aggressively outside of Chicago, putting locations in Florida, Wisconsin and Minnesota.
It’s not Osanloo’s job to fix the chain, he said.
“I’ve had so many chapters in my professional career working on businesses that had challenges and growth was not there or there was declining volume,” Osanloo said. “This is the first business that I’m stepping into that is already growing.”
“When you look at the economic performance, there’s nothing wrong with the operations of Portillo’s,” he added. “It would be foolish of me to come in here and say that I’ve got to fix operations. Operations are pretty good.”
The operating model, with large restaurants and a varied menu, gives the chain a “moat” that makes it difficult for competitors to copy.
It will be Osanloo’s job, instead, to ensure that the company is pointed in the right direction, that it has a vision for growth.
“Great companies have a great culture,” he said. “But they also have great vision. My job is knowing how high is up for Portillo’s, and what is great for Portillo’s. How many restaurants we should be adding and how quickly.”
“I’m going to spend the bulk of my time thinking about how great the company can be,” he added.
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