Dive Brief:
- Portillo’s has added a loyalty program, called Portillo’s Perks, that does not require an app and is based in consumers’ mobile digital wallets, the company said Monday.
- Rewards are based on frequency and consumption habits, the brand said, rather than banked points redeemed by the consumer.
- Portillo’s aims to enlist between 1.5 million and 1.7 million customers in its loyalty program by midsummer, according to the press release.
Dive Insight:
Portillo’s expects the loyalty program to contribute to traffic growth throughout the year, CEO Michael Osanloo said during the chain’s most recent earnings call.
The frequency element of the rewards structure, combined digital wallets rather than traditional app-based programs, “allows us to truly personalize offers, so we're able to surprise and delight our guests with easy access and relevant rewards,” Osanloo said.
The frequency focus offers the brand greater control of what sorts of discounts it offers, and the rewards given through the program could change based on market conditions, he said. In the Chicago area, he added, the loyalty program might serve to drive repeat visits, while elsewhere offers might focus on building brand awareness or driving trial of specific menu items.
“We can customize the richness of the offer to suit the needs of the business and our guests,” Osanloo said.
Keith Correia, the company’s chief information officer, said the program was designed to minimize friction.
“We eliminated common loyalty program pain points by integrating directly with the digital wallet already on guests' phones—no extra apps to download or passwords to remember,” Correia said.
Osanloo said the digital wallet feature will avoid “app fatigue” among consumers. Consumers earn badges based on frequency, ranging from a First Bite badge for new members to a Top Dog award for special spendthrifts. Consumers get large fries as a welcome offer, with personalized perks following, the company said.
The loyalty scheme is one of Portillo’s four pillars intended to grow traffic alongside the deployment of kiosks, advertising outside of Chicago and improving operations and speed of service. Traffic fell 3.7% in Q4.
According to Portillo’s 10-K, same-restaurant sales fell 0.6% in 2024, a modest decrease. The chain’s average unit volume fell from $9.1 million in 2023 to $8.7 million in 2024, based on eroding same-store sales and the opening of 10 new units. An AUV that high is enviable among publicly traded restaurant companies, but the chain has previously said it is targeting a $10 million AUV, making any slippage in its average a worrying sign.
