Portillo’s reduced its corporate workforce by 18% at the end of July, the company announced in its latest earnings report.
The layoffs impacted about 18% of the company’s active corporate headquarters staff and a few field management roles. No restaurant employees were affected.
The restructuring follows a sales decline and a shift in strategy. CEO Brett Patterson explained the decision during an earnings call, stating the changes would help streamline operations and refocus resources on priorities that support restaurant operators and customers.
“While never an easy decision, we must examine areas of the business where we can operate more efficiently and ensure our resources and future investments are directed at the right priorities,” Patterson said.
Since taking over last quarter, Patterson has adjusted the company’s approach, focusing on three areas: operational excellence, integrated marketing, and disciplined development. The restructuring aims to simplify the corporate structure, speed up decision-making, and better support individual locations.
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Portillo’s also reviewed its supply chain and indirect spending to identify cost savings. It analyzed its development process from start to finish, seeking ways to simplify procedures, reduce expenses, and improve capital discipline.
Same-store sales dropped 1.2% in the second quarter of 2026, continuing a downward trend. The company had expanded quickly into Texas last year, but opened locations too close together, leading to internal competition. This made it difficult for individual units to reach the chain’s usual high sales volumes. Portillo’s has since slowed expansion in the state, refocusing on slower, more profitable development.
The company opened its first airport location at Dallas-Fort Worth International Airport last month. The 3,100-square-foot space features a kitchen 25% smaller than a standard Portillo’s and uses equipment designed for tighter layouts. Patterson noted these changes could shape future restaurant designs.
“These actions, along with other efficiencies, will support our long-term growth strategy,” he said.
Portillo’s did not specify how many employees were affected by the layoffs. The chain operates more than 100 locations across the U.S., primarily in the Midwest.
