Portillo’s next month will finally launch its long-anticipated loyalty program.
CEO Michael Osanloo said Tuesday the program is in soft launch and is expected to be rolled out in March. Portillo’s is one of few publicly traded restaurant companies that hasn’t had a loyalty program thus far.
But Portillo’s Perks program is taking a different approach with app-less loyalty.
Most restaurants ask loyalty members to engage via a smartphone app, but Osanloo said, “Consumers are approaching app fatigue.”
Portillo’s loyalty program, instead, will live in an Apple or Google digital wallet, and the offers will be personalized based on guest behavior. In the brand’s home base of Chicago, for example, the offers might be focused on generating more frequency, while in a newer market, the loyalty program will tempt guests with new menu items or discount offers.
Osanloo hopes to see up to 1.7 million guests sign up by July.
The loyalty launch is one of several traffic-driving initiatives planned for this year. For the Dec. 29-ended fourth quarter, Portillo’s same-store sales were up 0.4%, which was based largely on an increase of average check of 4.1%. Transactions decreased 3.7% for the quarter.
For the year, same-store sales were down 0.6%. The chain added 10 restaurants in 2024 for a total of 94, and growth is expected to accelerate a bit this year, with 12 planned for 2025—including the first restaurant in Georgia, in the Atlanta suburb of Kennesaw.
Despite an early hit by bad weather in February, Portillo’s projects same-store sales will range between flat and up 2% this year.
The chain’s investment in kiosks has continued to pay off, and Portillo’s this year will do more advertising in Texas to build brand awareness, with billboards on busy highways and TV ads.
And the chain is also focusing on building drive-thru accuracy and speed.
Osanloo said every 30-second improvement in drive-thru throughput translates to a percentage point in comparable sales. Portillo’s has a goal of cutting 45 seconds from drive-thru times.
And Portillo’s is continuing on its journey to open smaller, more efficient restaurants.
Last year, the company opened two of its new Restaurant of the Future format units, which were about 6,250-square feet, down from the more traditional 7,000-square foot format. All of the restaurants planned for 2025 will be the smaller footprint format.
Next year, Portillo’s plans to go even smaller with a Restaurant of the Future 2.0. “We feel like we can get a little bit more capital efficient with the next iteration,” Osanloo said.
A pickup-only unit opened in a Chicago suburb last year, which the company is still fine-tuning, he said. Now Portillo’s is looking at the potential for non-traditional locations in airports, for example, or in busy downtown areas.
At a location in Houston, the chain has been testing a more-streamlined menu, cutting about 15% to 20% of SKUs, focusing on low-performing items. That effort could further reduce kitchen complexity, streamline accuracy and cut labor and utility costs. There’s less need for cooler and freezer space, and it reduces the need for some kitchen equipment, he said.
“I think there’s an unlock there going forward,” said Osanloo.
But Portillo’s isn’t looking at cutting items in markets like Chicago, where guests have certain expectations from the brand.
“We won’t go back and take beer away from our Chicago guests,” he said. “I think that would cause riots in our restaurants.”
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