Portillo’s beats out fast food bigs like McDonald’s for best value
Well, hot dog — looks like we have a wiener.
Chicago cult-favorite fast food chain Portillo’s was just named best value in the business, reportedly besting global bigs like McDonald’s in an influential new survey — and they’re doing it without “going on sale” like their competitors, executives at the Chicago dog and chocolate cake shake concern boasted.
As the Golden Arches attempts to overcome inflation-era customer fatigue by pumping out the so-called McValues, Portillo’s, known for a relatively short menu of Windy City street food faves, prefers the love us or leave us approach, QSR Magazine reported.
“Portillo’s does not play the discount game,” CEO Michael Osanloo said.
“We compete on great everyday pricing for our cravable food and abundant portions, and we know this approach will benefit us in the medium and long term,” he emphasized.
The move appears to be paying off — in a somewhat sprawling study of the restaurant business conducted by global investment banking and asset management firm William Blair, the Italian beef sandwich seller scored the highest, or 3.575 out of 5, when it came to value proposition.
What started out as a few stores in Chicagoland has grown to a 90-location network nationwide, stretching from California to Florida, with more stores on the way, according to the company.
And while they may not be interested in any quick wins when it comes to pricing, there’s a focus on loyalty that winds up delivering long-term affordability, Eat This, Not That reported.
“As they visit us, as they get badges, we communicate with them, we give them special offers,” Chief Information and Digital Transformation Officer Keith Correia said.
The more visits a fan of the chain racks up, the restaurant then can customize special orders offered tot hem based on their order history and perceived preferences, the outlet said.
The chain beat out Shake Shack, which scored a relatively high 3.345 on the scale, the survey showed — despite being slammed as “overpriced” in a recent survey.
Starbucks, now in turnaround after ex-Chipotle CEO Brian Niccol has launched an ambitious new plan for the coffee shop chain, lagged at 2.843.
As part of the survey, customers were asked if they were visiting a chain more or less often. Starbucks was the only one on the diverse list where people were turning away by the double digits, or 14%.
Of that group, 52 percent blamed prices, while 17% found the experience inconvenient.
Earlier this week, the company announced the return of free refills on hot and iced coffees, but with some caveats.
