Portillo’s has cut about 18% of its active corporate headquarters workforce in Oak Brook, Illinois, as the restaurant chain moves to lower costs after weaker customer traffic and higher operating expenses. The reduction took effect on July 31, 2026, and included corporate employees along with a limited number of field management roles.
The company has roughly 140 employees at its Oak Brook office but did not disclose the exact number of jobs eliminated. Restaurant-level workers were not included, leaving about 8,000 restaurant employees outside this round of restructuring.
Portillo’s described the action as part of a strategic reset aimed at improving efficiency while the company continues to evaluate its spending and expansion plans.
Weaker Restaurant Traffic Adds Pressure
Portillo’s reported about $199 million in second-quarter 2026 revenue, up 5.6% from $188.5 million a year earlier. However, same-restaurant sales declined 1.2% and transactions fell 3.4%.
A 2.2% increase in the average customer check helped offset some of the decline in visits. The company also raised selected menu prices by about 2% in April, while commodity costs increased roughly 7% year over year.
Net income fell by $2.9 million to $7.2 million during the quarter. Restaurant operating expenses rose 8.1% to $155.7 million, increasing faster than revenue.
The pressure reflects a broader challenge across the restaurant sector as consumers become more selective about price and value. Similar concerns are visible as diners reassess restaurant chains amid higher prices and smaller portions.
Portillo’s Cuts Costs but Continues Expansion
Chief Executive Officer Brett Patterson said the company is reviewing where it can operate more efficiently and where future investment should be directed. Portillo’s expects about $1.1 million in restructuring charges related to the workforce reduction.
The company slowed the pace of national expansion earlier in 2026 but has continued opening restaurants. Portillo’s added eight locations during 2025 and another seven in the first two quarters of 2026.
Recent development includes its first airport restaurant at Dallas Fort Worth International Airport. The company is also planning an inline Michigan Avenue location in downtown Chicago later in 2026 and a Wrigleyville restaurant in 2027.
The challenge is to keep growing while controlling costs and improving returns from existing locations. A similar focus on weaker restaurant economics can be seen in Wendy’s plan to close underperforming U.S. restaurants during its turnaround, although Portillo’s has not announced a comparable broad closure programme.
The reset also comes with a finance leadership change. Kevin Kalicak has been appointed chief financial officer and treasurer, effective September 7, 2026. He previously spent more than 25 years with Darden Restaurants and most recently served as senior vice president of finance for Olive Garden.
What Matters After the Corporate Cuts
The key measures now are same-restaurant sales, customer transactions, restaurant margins and the performance of newer locations. Those figures will show whether the cost reduction is improving the business without weakening operations.
Customers are more likely to notice changes in pricing, promotions and service consistency than any direct effect from the headquarters cuts. For the company, the bigger test is whether traffic improves while expansion remains profitable.
Portillo’s detailed its second-quarter performance and restructuring information in its second-quarter 2026 filing.
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