Fast-casual brand also plans new technology in California restaurants
Portillo’s Inc. has launched its first kiosk prototype in its home Chicago market and plans to expand it to a couple more Illinois restaurants, to be followed by two California units, executives said Tuesday.
The Chicago-based fast-casual concept, which released earnings for the second quarter ended June 30, said that year-to-date, its drive-thru speed had improved by 15 seconds versus the same period last year.
“We’re still working to get back to 2019 levels, but with the right focus, we’re seeing improvement,” said Michael Osanloo, Portillo’s CEO and president, in an earnings call with analysts.
Part of the digital innovation included the kiosk test that began last week in Downers Grove, Ill., Osanloo added.
“We studied best practices across the restaurant industry to pinpoint how kiosks can enhance the Portillo’s guest experience,” he said. “We’re especially excited about helping guests visually explore our menu. [And we] love the idea of using images to suggest entrées and add-ons that appeal to various consumer types.
“In Q3, we plan to install kiosks in our flagship downtown Chicago location, followed by two more restaurants in California,” he said. “We look forward to updating you on this initiative in future quarters.”
The company has installed its 24-inch Bite kiosks, offering Portillo’s customers a layer of convenience and choice and freeing up employees to support other areas of the restaurant.
As part of the pilot program, Portillo’s plans to install additional kiosks at restaurants in California later this month, a representative said.
Keith Correia, Portillo’s chief information officer, said in a statement: "By offering an alternative ordering experience, we're giving guests another way to get their Portillo’s.”
The kiosks allow Portillo's to showcase both core menu items and new innovations, the company said. The video screens not only ease the ordering process, but they “also offer a visual journey through Portillo's full menu to encourage guests to discover new items, potentially leading to increased check sizes and higher guest satisfaction,” the company said.
Osanloo said Portillo’s was continuing to work on a 6,300-square-foot prototype.
“The 1,500-square-foot reduction significantly reduces our build costs,” he said. “To be clear, that’s a 20% reduction in our square footage without constraining our capacity to deliver industry-leading AUV’s. We will have three restaurants in Texas with this footprint by the end of the year.”
For the second quarter ended June 30, Portillo’s net income slipped to $6.5 million, or 10 cents a share, from $6.8 million, or 12 cents a share, in the prior-year period. Revenue increased 7.5%, to $181.9 million from $169.2 million in the same quarter last year.
Same-store sales declined 0.6% in the quarter.
Portillo's, founded in 1963, has 88 restaurants in 10 states.
Contact Ron Ruggless at [email protected]
Follow him on X/Twitter: @RonRuggless
