Portillo’s, the Chicago Italian sandwich chain, arrived in Texas to much fanfare—especially from Midwest expats. But it looks like the Italian beef shop is turning down the heat. What happened?
For once, it looks like Texas is the culprit. Portillo’s entered the state in 2023 by way of Dallas, and opened its first Houston locations a year later. That would be impressive, except a recent earnings call (via Restaurant Business) says the Texas locations have cut its projected revenue growth for 2025: from 10 to 12 percent down to 5 to 7 percent.
According to Portillo’s CEO Michael Osanloo, the main issue is a lack of awareness. That problem surfaced following the opening of the chain’s first location in The Colony in Dallas. The chain put a lot into premarketing the first Texas Portillo’s, and it paid off with an explosive opening that, while encouraging, put intense pressure on the restaurant right at the start…