HomeFood & Beverages FranchisePortillo's Franchise Opportunities: Alternatives, Cost, & Profit

Portillo’s Franchise Opportunities: Alternatives, Cost, & Profit

Are you considering owning a profitable food franchise business in the U.S.? Whether you are a fresh entrant or an experienced business owner, you might have come across several food businesses that are producing healthy profit margins.

If you have answered “yes” for any of the query, then you should be curious to learn more about the Portillo’s chain that has taken the food industry by storm. Yes, we are talking about Portillo’s – a food chain renowned for its authentic Chicago-style hot dogs.

We’ll also elaborate more about Portillo’s franchise, and its requirements, future growth plan, profits, and more. We’ll provide a comprehensive questionnaires and its answer in the FAQ section to get the complete picture of it.

We request you to read this article completely, so that you shouldn’t miss any relevant information on same.

Portillos Franchise Opportunities
  • Brand: Portillo’s
  • Founded: 1963
  • Key PeopleDick Portillo
  • Industry: Restaurant
  • No. of Franchise: 75+
  • Area served: Nationwide
  • Franchise Fee: NA
  • Royalty Fee: NA
  • Ad Royalty Fee: NA
  • Model: Company-owned and operated
  • Est. Initial Investment: $3 Million to $5 Million

Overview of Portillo’s Franchise

Overview of Portillo's Franchise

Founded in Villa Park, Illinois, USA in 1963 by Dick Portillo, Portillo’s is one of America’s leading and popular restaurant chain specializing in offering a diverse range of delicious hot dogs, Italian beef sandwiches, burgers, and other classic comfort foods at competitive pricing.

Having known for its authentic Chicago-style hot dogs, nostalgic ambiance, exceptional customer experience, and its commitment to delivering fresh, high-quality, flavorful meals, Portillo’s has been ruling the hearts of several fast-food enthusiasts.

With its immense experience of over four decades and a comprehensive range of food options for consumers, the chain has undoubtedly garnered a loyal customer base for its foods.

Currently, the chain boasts over 75+ locations across the states, and all of its outlets are owned and operated by the company itself.

According to the official commentary, Portillo’s will continue to operate and expand as a self-owned business and doesn’t have any plans to embrace the franchising model in the near future.

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The Journey of Portillo’s

Their humble beginning started as a small food stand known as “The Dog House” in 1963 in Villa Park. They began with an initial investment of $1,100 into a 6′ x 12′ trailer without a bathroom or running water.

Over the years, Portillo’s has experienced significant growth, expanding to become a chain of 75+ company-operated stores in the US.

In a true sense, Portillo’s journey is all about customer-centric self-sustained approach. Over the years, Portillo’s has continuously innovated its menu, introducing several mouthwatering food items, and enhancing its store ambience to attract customers, allowing themselves to establish as a prominent player in the industry.

Key Facts on Portillo’s

Sr No.TypePublic
1Trade NamePortillo’s (Ticker Name – PTLO)
2IndustryFood & Beverages
4Founders Or Parent CompanyDick Portillo
5Corporate HeadquartersOak Brook, Illinois, United States
6Number of locations75+ Outlets
7Area servedAcross the US
8ModelSelf-owned and operated
9Menu offeringVarieties of Hot Dogs, Italian Beef,
Burgers, Fries, Shakes,
Desserts, and more
10RevenueUS $587 Million FY22

Does Portillo’s Franchise?

Does Portillo's have franchises

While franchising could be a profitable route for expanding locations across the globe, and several businesses have embraced it, Portillo’s is an exception to this.

Yes, you read it right. Unfortunately, Portillo’s doesn’t sell its franchises, and its complete 75+ outlets are entirely owned and operated by the company itself.

If you are super interested in owning its franchises, you may need to wait longer as they don’t even have plans to embrace it in the near future.

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Why consider owning a Portillo’s Franchise? (If offered)

  1. Strong brand recognition:
    • Portillo’s has established itself as a prominent player in the F&B industry thanks to its authentic Chicago-style hot dogs and several other lip-smacking ranges.
      • It may allow new franchisees to embark on their entrepreneurial journey and leverage the brand’s proven business model.
  2. Comprehensive experience as aself-owned and operated” business:
    • Since its establishment, Portillo’s has been operating its complete stores as a company-owned entity, which has allowed them to understand the entire business flow from its basics.
  3. Consistent growth in its financials:
    • As a franchisee, you’ll be part of a food chain that has been continuously improving and experiencing consistent success in its financials. According to the latest financial report, the chain has registered a total revenue of US $587 million, signifying significant growth compared to the previous year.
  4. Training and support:
    • Interested franchise prospects may also benefit from Portillo’s proven business model and successful track record of operating its outlets, and its extensive training program may provide enough insight on the company’s operations and day-to-day tasks.
  5. Marketing and advertising support:
    • As a franchisee, you’ll be able to leverage Portillo’s marketing campaigns, social media promotion, and digital advertising to create awareness.

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How much does Portillo’s Franchise Cost?

Portillo's Franchise Cost

As mentioned earlier, Portillo’s neither sells its franchises nor has any plans to do so in the near future. Throughout the years, the chain has followed a systematic and self-sustained approach, enabling them to achieve a healthy profit margin with just 75 stores.

Like other food franchises, the initial setup cost will vary depending on the outlet’s geographical location, available space, market potential, and more.

Nevertheless, considering its existing business model and store layout, one may need to have an initial investment of US 3 Million – $ 5 Million. This initial investment of Portillo’s does cover the franchise fee, marketing fee, and other necessary expenses.

Additional Cost for Portillo’s

Typically, To run and operate a Portillo’s location, one must adhere to their standards and are liable to pay a few additional costs such as Royalty fee, advertisement fee, maintenance fee, and a few other investments.

The Portillo’s may demand a royalty fee of 5% and ad royalty fee of 2-3%, which will be calculated based on the monthly gross sales.

Please note: The above mentioned figures of Portillo’s are just for the understanding purpose. Portillo’s doesn’t embrace franchise model. To get the updated info, you can either follow our website by pressing the notification icon or directly connect the with company representative.

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How much is the Portillo’s Franchise Profit?

Portillo's Franchise Financial report

Despite having over 75+ stores spread across various regions in the United States, the net profit margin of each outlet may differ due to factors like the outlet’s location, market potential, average customer footfall, and average check value.

Like Dave & Buster’s chain, Portillo’s restaurants has also posted a strong numbers in all aspects of its operations. Portillo’s has set an ambitious target of opening 9 new outlets by the end of 2023, having already opened around 4 outlets in 2022.

Nonetheless, with its experience in operating approximately 75+ company-owned and operated restaurants, a strong foundation, and plans to open more outlets in the near future, the chain is well-positioned to expand across the country and international markets while consistently registering a healthy year-on-year profit margin.

Financial summary of Portillo’s – First Quarter 2023

  1. The Year 2022 has been really exciting for Portillo’s, where the chain had posted an impressive revenue of $587.8 million, registering a remarkable growth of 28.5% compared to the fiscal year 2020.
    • As per the current quarter Q1FY23, The chain has already posted a revenue of $609 Million, and it may continue to grow further to post its all-time high revenue growth till date.
  2. The franchise also expects to deliver a long-term unit growth of 10+ annually.
  3. Their Net income has also shown a positive growth from $12 million in the FY 2021 to $17 million for the FY2022.
  4. However, its Adjusted EBITDA (excluding pre-opening expenses) for FY22 was $85 Million, which was approximately in a same range of FY20.

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Requirements to Own a Portillo’s Location (if offered)

  1. First and most important – One should be financially well-qualified and have good credit to start a Portillo’s location, and should be ready to invest minimum $3 million to $5 million.
  2. Interested applicants are advised to dedicate themselves to the Portillo’s business and follow the company standards and maintain their legacy.
  3. Interested applicants must undergo and complete the necessary training program offered by the Portillo’s.
  4. Applicant should be hard-working and dedicated to being heavily involved during the early stages of their new venture with Portillo’s.
  5. Interested franchisees should have passion to work in the Food and Beverages industry and should possess the leadership and financial skills to operate a Portillo’s outlet.

What are the Alternatives to Portillo’s Franchise?

Undoubtedly, Portillo’s could be a great franchising opportunity for aspiring candidates looking to venture into the food industry. However, it’s important to note that buying its franchises is not an option since the chain doesn’t embrace the franchising model and has no plans to adopt it in the future either.

Here are some enticing alternatives to Portillo’s

Two Hands Corn Dogs Franchise

Two Hands Corn Dogs may prove to be an great alternative to Portillo’s. The chain was founded in 2019 specializing in diverse flavors of Hot dogs, sausages, including beef, pork, chicken, and vegetarian cuisine.

At present, the chain operates over 40+ restaurants across the states and all these was achieved within three years of its operations.

The initial investment for Two Hands Americas Inc., may range between $210,500 to $350,000 and a franchise prospects may anticipate an annual income of over $50,000 to $75,000.

Read more: How to Get Two Hands Corn Dogs Franchise – Cost & Profit

Whataburger Franchise

Another Superhit hamburger chain, founded in 1950, specialized in offering a freshly prepared burgers and a delectable range of cuisines to its customers.

Over the years, Whataburger has grown into a robust franchise network of over 900+ outlets across the 14 states in the U.S.

To become an approved Whataburger partner, Interested candidates/partners should be willing to invest between $2 million and $2.5 million, which may also include the franchise fee of $40,000.

Read more: How to Start a Whataburger Franchise – Cost, Fee, & Profit

How to Get Portillo’s Franchise?

Unfortunately, you can’t own a Portillo’s Location currently as the franchise neither embraces the franchise model nor offer sell of any of its locations.

However, if they starts its franchising program in future, one can certainly take up this below procedure;

  1. Visit its official website of Portillo’s and navigate to its contact us page.
    • You can place your franchise query by selecting the general query and fill in the details like Name, Email ID, City, State, Phone number, and the business proposal.

Final Takeaway – Conclusion

Undoubtedly, Portillo’s is one of America’s most cherish restaurant chains, predominately known for its authentic Chicago-style hot dogs and varieties of cuisine at an affordable pricing.

From its humble beginnings as a small roadside kiosk with a mere space of 6 x 12, to its extensive presence with over 75 company-owned stores, Portillo’s has truly stood the test of time.

The Bottom line – While the dream of owning a Portillo’s franchise may not be a current possibility, the brand’s legacy is certainly continues to inspire entrepreneurs seeking success in the restaurant and retail industry.

Source: Financial report Q1FY23

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  1. Is Portillo’s Franchise?

    Ans: Portillo’s is purely a company-owned and operated entity, which takes pride in owning over 75+ restaurants across the United States.

  2. Can you buy a Portillo’s Franchise?

    Ans: Unfortunately, purchasing a Portillo’s outlet is not an option. The chain has been operational since its first establishment in 1963, and since then, it has chosen to operate and expand solely through a self-owned and operated approach.
    Based on the latest information, Portillo’s is not seeking franchise applications for its store expansion, nor does it have any plans to do so in the future.

  3. How much is Portillo’s Franchise income per day?

    Ans: Based on the latest financial report for FY22, all of Portillo’s locations (approximately 75 stores) recorded a total revenue of $557 million. With this data, one can anticipate that a single Portillo’s outlet would potentially generate a daily revenue ranging from $20,000 to $30,000.

FranchiseGoal Admin
FranchiseGoal Adminhttps://franchisegoal.com
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