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Portillo's to Shutter Up to 9 Out-of-State Restaurants as It Doubles Down on Chicago

Portillo's will close up to nine underperforming locations outside the Chicago area while opening seven new Texas restaurants and a flagship on Michigan Avenue, the company said during its third-quarter earnings call.

Portillo's to Shutter Up to 9 Out-of-State Restaurants as It Doubles Down on Chicago

Portillo's, the Chicago-born chain famous for its hot dogs and Italian beef, plans to close a handful of restaurants outside its home market after a review of sales performance at every location, company executives said Thursday during a third-quarter earnings call.

The closures will affect a "mid-to-high single-digit" number of restaurants, all of them outside the Chicago area, the company said. Portillo's did not identify which locations will close or set a timeline for the shutdowns.

The decision came as the company reported quarterly results that were "ahead" of expectations. CEO Brett Patterson said the strategy is built around operating strong restaurants, coordinated marketing and disciplined growth, backed by a financial framework that "guides decisions, strengthens accountability and positions Portillo's for long-term success."

Patterson said the review showed that Portillo's draws frequent visits in the Chicago region, where locations are packed closely together, but that out-of-state restaurants depend more on customers making a special trip.

"You look at Chicagoland, your frequency is going to be higher because you have one every couple of miles," Patterson said on the call. "And so what we learned was, yes, we love Portillo's just as much as somebody in Chicago, but destination, it's much harder."

At the same time, Portillo's is expanding aggressively in Texas, where it opened seven new restaurants in 2026. The chain also said its planned Michigan Avenue location in Chicago, described as a "second-in-line" restaurant, is expected to open by the end of the year.

The mixed picture follows cost-cutting at the company's Oak Brook headquarters. In August, Portillo's announced it was eliminating 18% of its corporate and field management staff, a reduction affecting 140 employees.

For Chicago-area customers, the announcement signals that the chain intends to keep its core market central to its identity even as it experiments with new formats and out-of-state growth. For communities elsewhere that have welcomed Portillo's locations, the coming months will bring uncertainty about which restaurants will remain open.

The company has not said when it will disclose the specific locations slated for closure.

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