Portillo’s, the Chicago-based restaurant chain that has recently scaled back expansion plans amid sluggish sales, has a new CEO.
Industry veteran Brett Patterson, whose resume includes executive roles at Outback Steakhouse, Ruby Tuesday and Olive Garden, will take the reins of Portillo’s on Feb. 23, the company announced Wednesday.
Patterson will also join the Portillo’s board.
“Brett has all the right qualities to lead Portillo’s into its next chapter of growth,” Michael Miles, chairman and interim CEO of Portillo’s, said in a news release. “He brings the strategic mindset, operations expertise, and leadership style needed to grow this brand, while preserving what makes Portillo’s so special and unique.”
Most recently, Patterson has served as CEO of Miller’s Ale House, a Florida-based sports-themed restaurant chain with more than 100 locations in 10 states, including five in suburban Chicago.
Miles praised Patterson as a restaurant executive who “worked his way up through the ranks” and understands the business, while Portillo’s also touted his ability to deliver strong returns and long-term profitability, metrics that have dogged the iconic Chicago chain for several years.
In September, Portillo’s announced the abrupt departure of CEO Michael Osanloo amid disappointing sales, a sinking stock price and downsized expansion plans.
Osanloo, who had been president and CEO of Portillo’s since 2018, oversaw the Oak Brook-based restaurant chain through an initial public offering and an ambitious growth plan, which was scaled back last year as part of a strategic reset for the company.
Miles, the former COO of Pizza Hut and Portillo’s chairman since 2014, became interim CEO while the board conducted a search for Osanloo’s successor. Patterson will soon have his shot at leading Portillo’s, famous for its Italian beef, hot dogs and other Chicago-style offerings, into the future.
As Portillo’s CEO, Patterson, 57, will be paid a base salary of $800,000 per year, as well as a one-time sign-on award of $400,000 in restricted stock units that vest over two years, according to an 8-K filing Wednesday with the Securities and Exchange Commission. Patterson will also be eligible for an annual bonus and an annual long-term equity plan target of $3 million.
“I am incredibly excited and honored to join Portillo’s,” Patterson said in the news release. “This is a tremendous brand with a powerful culture, an incredibly passionate fan base, a long runway for growth, and a team that truly cares about delivering great experiences.”
After launching Portillo’s as a Villa Park hot dog stand in 1963, Dick Portillo expanded his menu to include Italian beef, burgers, salads and more, and built his chain to 38 restaurants in Illinois, Indiana, California and Arizona before selling to private equity firm Berkshire Partners in 2014.
When Portillo’s went public in October 2021, it had 67 restaurants in nine states, raising $405 million through the offering with an ambitious plan to expand to 600 locations nationwide.
Since then, Portillo’s has grown to more than 100 restaurants across 11 states, but its stock has fallen about 90% from the post-IPO high and the chain has been under pressure from activist investors Engaged Capital over concerns about flat sales and expensive restaurant buildouts.
Slowing down the expansion of Portillo’s into new markets is a key part of the recently announced reset strategy. The chain plans to open eight new restaurants this year.
It is also building smaller restaurants as it expands, lowering projected construction costs to less than $5 million per store this year.
Portillo’s is scheduled to announce its fourth-quarter and full-year earnings on Feb. 24.
