Did you ever think about owning your own franchise and becoming a business owner?
Franchises are very lucrative opportunities if you choose the right brand and industry for you.
There are thousands of these franchise brands in the United States, and people go to them in the hopes of owning their own businesses.
One of the popular brands in the food industry is Portillo’s. You’ve probably seen at least one of their stores, and if franchising is on your agenda, you might have thought about whether you should own one.
Let’s take a look whether Portillo’s franchises and other details surrounding the franchising possibility.
About Portillo’s
Portillo’s is a popular American restaurant chain known for its Chicago-style hot dogs, Italian beef sandwiches, and other classic comfort foods.
They were founded in 1963 by Dick Portillo in Villa Park, Illinois, and have since expanded to over 70 locations in several states throughout the United States.
The menu at Portillo’s is known for its diverse offerings, which range from hot dogs and burgers to salads, soups, and pasta dishes. Portillo’s is also known for its commitment to quality and consistency.
All of the food is made from scratch in each restaurant’s kitchen, and the company uses only the freshest ingredients to ensure that each dish is delicious and satisfying.
Interested In Portillo’s Franchise?
History Of Portillo’s
Portillo’s is a privately owned restaurant chain that was founded in 1963 by Dick Portillo in Villa Park, Illinois.
The company started as a small hot dog stand called “The Dog House” and quickly became popular among locals for its classic Chicago-style hot dogs and Italian beef sandwiches.
They have a rich history that spans several decades and has been marked by steady growth and innovation.
Over the years, Portillo’s continued to expand and evolve, adding new menu items and opening more locations throughout the Chicago area.
In the 1990s, the company expanded beyond Illinois, opening its first out-of-state location in California. Today, Portillo’s has over 60 locations in several states across the country.
Portillo’s Franchise Model
| Franchise | NO |
| Franchise-Fee | NO (Doesn’t Franchise) |
| Estimated Outlets | 75 |
How Much Does It Cost To Open A Portillo’s Franchise?
Because Portillo’s doesn’t franchise, there are no associated costs to open a Portillo’s franchise.
Why Doesn’t Portillo Offer Franchising?
The company doesn’t reveal the reason behind the decision not to franchise.
They are completely company-owned right now, and they might want to stick with this instead of giving equity to the company.
Portillo’s Revenue & Profit
Based on the reports released by the company for the year 2022, they managed to generate higher revenue and profit from the year before.
Portillo’s Inc. generated $943.2 million in total revenues for the year 2022, an increase of $167.6 million from the previous year. This is the revenue, the number they generated by the goods they sold.
The company reported a net profit of $25.5 million for the same period, a $16.6 million increase from the previous year.
This means that 2.7% of Portillo’s revenue was the profit for the year 2022. It might seem like it’s a low number, but it’s actually a relatively good profit percentage for most restaurant chains.
What Are Some Alternatives to Portillo’s Franchise?
Five Guys
Five Guys is a fast-food chain specializing in burgers, fries, and hot dogs.
Like Portillo’s, it has a simple menu that emphasizes quality ingredients and a commitment to customer service.
If you would like to own a Five Guys franchise, the initial investment is between $152,000 to $360,000.
This cost includes everything such as the rent, equipment, employee salaries, and many others. It also includes the franchise fee of $25,000 that you must pay in advance.
To be able to have a Five Guys franchise approval, you must also have liquidity of $150,000.
They currently have over 900 stores across the United States and many more in development. Five Guys have been franchising since 2003.
Culver’s
Culver’s is a fast-casual restaurant chain that specializes in butter burgers and frozen custard. They have been in operation since 1984, with headquarters in Wisconsin.
They offer most of the fast food chain foods in addition to their specialization of burgers and custards.
The franchise fee you must pay to open a Culver’s is between $20,000 to $55,000, depending on various factors.
The total investment required, including the franchise fee, is between $2.3 million to $5.7 million.
This investment covers the land, employee, equipment, and other costs related to opening and operating a franchise branch.
Culver’s currently has over 800 outlets across several states in the United States.
When you become a Culver’s franchisee, you also need to pay a 4% royalty fee to Culver’s as part of their franchise agreement.
Portillo’s Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Freddy’s Frozen Custard & Steakburgers | $30,000 | 4.5% | $794,254-$2.3 million |
| A&W Restaurants | $20,000-$30,000 | 5-6% | $1.1 million-$1.7 million |
| Portillo’s | N/A | N/A | N/A |
Conclusion
It’s no doubt that Portillo’s is a very popular restaurant chain known for its hot dogs and Chicago cuisine.
Even though they are very popular with over 70 outlets, they don’t franchise, and all their stores are company-owned.
That’s why if you are thinking of entering the franchise world with Portillo’s, that’s not possible.
However, there are other alternative franchise chains that you might opt for if you are serious about owning a restaurant franchise chain.
A&W Restaurants, Five Guys, and Culver’s are just some of the options that actively franchise across the United States.
However, to succeed in the alternative options, you ideally must be aware of the industry and have background experience.
Frequently Asked Question
Who is the CEO of Portillo’s?
Michael Osanloo is the current CEO of Portillo’s. He’s been holding that spot since late 2018.
Does Portillo’s have plans to do franchising in the future?
As far as the company communicates, Portillo’s doesn’t have any plans for franchising in the future. This might change, but for now, it’s not the case.
Are there better opportunities than Portillo’s?
Portillo’s might be a popular fast-food chain, but there are definitely better franchise opportunities. You shouldn’t wait for them to start franchising.
Is Portillo's a Franchise?
Portillo’s does not offer franchises and has no plans to do so in the future.
The company owns and operates all of its locations, and there are no opportunities for individuals to become franchisees.
Sources
https://investors.portillos.com/shareholder-services/investor-faqs
https://www.portillos.com/our-history/
https://www.portillos.com/our-story/
https://en.wikipedia.org/wiki/Portillo%27s_Restaurants
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.