Chicago staple Portillo’s could be on the verge of going public. It’s a move that required the 1963-founded chain to pull back the curtain a bit. Security filings didn’t reveal anything Portillo’s hasn’t preached for years, however—that it’s a brand living outside the parameters of what we’ve come to expect in fast casual. Namely, average-unit volumes of $7.9 million and restaurant-level adjusted EBITDA margin of 28.6 percent, both tops across the entire sector, according to The NPD Group.

In a pandemic-riddled year, Portillo’s welcomed 800,000 guests, on average, at each location, spending $9.60 per person. In the 12-month period that ended June 27, it rose to 825,000.

Stores in Chicagoland averaged $9.1 million on adjusted EBITDA margins of 32 percent. Units outside Portillo’s home base were at $5.8 million and the brand is targeting that level (along with margins of 22 percent) for new builds by their third year of operation, with cash-on-cash returns of 25 percent. It’s an AUV higher than any of the top-50 grossing quick-serves in the country last year, including Chick-fil-A. 

Portillo’s, which had 67 restaurants across nine states as of June 27, generated drive-thru sales of $4.9 million in that 12-month lead-up, more than double the throughput of McDonald’s 2019 average drive-thru and triple the burger chain’s 2020 and trailing Q2 12-month period (nearly all of Portillo’s restaurants are built with double-lane setups and sizable parking areas). The chain also posted dine-in sales of $1.9 million, about 75 percent of Chipotle’s most recent total AUV. Going back to pre-COVID days, the take was $4.4 million.

There were some other outliers, too: The chain, known for its Italian Beef (23 percent of sales) and hot dogs/sausages (14 percent of mix), sold more than $600,000 worth of salad per restaurant last year. No single menu category accounted for more than 23 percent of sales.

• Sides/fries: 16 percent
• Burgers: 14 percent
• Beverages/beer: 11 percent
• Salad: 9 percent
• Desserts/other: 5 percent
• Pasta/ribs/chicken: 4 percent
• Other sandwiches: 4 percent

Portillo’s lunch and dinner dayparts are nearly even as well, with 52 percent of business taking place during the former.

All of this is why Portillo’s believes it can reach 600 stores domestically in the next 25 years—a target that came from data conducted by Forum Analytics last year.

Yet there’s another eye-opening figure at work that hasn’t generated as much buzz: 87. That’s the average number of employees it takes to run a single Portillo’s.

There’s no database to prove this also leads the chain’s peer group, but it sails sector averages by an ocean. The typical quick-serve, per Black Box Intelligence, staffs roughly 23 people.

Jill Waite, the chain’s chief human resources officer, says getting there is worth every effort for Portillo’s. And these days, of course, it’s higher stakes than usual. According to a recent survey from the National Restaurant Association, among restaurant operators not open at the maximum indoor capacity currently allowed by their jurisdiction, 71 percent credited “not enough employees” as the culprit. Nearly 80 percent said they don’t have enough staff to meet current demand and 83 percent claimed their restaurant was 10 percent below necessary levels. Black Box also found similar baselines, with the average number of employees per restaurant down 1.2 in June versus 2019 averages.

Portillo’s, Waite says, has a standard of family and cultural values that aren’t simple to guard, and the company has zero intentions of compromising, labor shortage or not. And it starts with people willing to carry that banner. Portillo’s chose to not lay off or furlough a single employee when COVID hit, instead electing to cross-train additional skills in an effort to increase capacity in off-premises channels. The company provided paid leave, PPE, and created a “Wellness Team” to advise on and monitor the well-being of workers. Additionally, Portillo’s gave 100 percent meal discounts and gift cards throughout COVID and funded bonuses to field managers. If employees wanted to step aside for personal reasons, Portillo’s allowed them to take leave, and still paid out benefits and offered gift cards for free meals. It then launched a foundation called “The Heart of Portillo’s Fund” to help workers with setbacks. Through this, the company raised more than $400,000 over 18 months and awarded about 40 grants for close to $100,000.

That people-first dial has only turned up of late. Portillo’s recently spent $12 million to increase wages and add perks.

“We are pretty much close to being staffed and how we were able to do that is we created a culture of family where we select and we hire people who live the Portillo’s values,” she says. “And what ends up happening is our team members want their friends and their families to work for us, because of the environment and culture that we have created within the restaurant.”

More than 30 percent of Portillo’s workers stem from employee referrals. The program is a combination of a monetary and gift component.

Coming out of COVID’s depths and right into the labor shortage, Portillo’s conducted a total rewards survey to ask employees what they wanted from the brand. Flexible schedules and free shift meals were clear points, Waite says, but perks the brand already offered. Something new to emerge, though, was what Portillo’s calls “premium holiday pay.” Employees who work any of the calendar’s five key holidays currently earn an extra $3 per hour.

The $12 million investment also went toward increasing hourly wages. In Illinois, as one example, Portillo’s employees now start at $14 instead of $11. Tenured team members got an adjustment as well. Crew chiefs were added to the bonus program.

Waite says GMs also suggested Portillo’s beef up recognition. Some asked for $25 or $50 per month to reward hourly employees. “I said, ‘geez, an average of 87 team members, you probably need a little more than $25 or $50,” she says.

Each GM today receives $150 per month to do as they deem fit as part of the “Franks a Lot” initiative. During the recent graduation season, one GM used the money to place signs in the drive-thru lot where every employee who graduated was recognized.