With food costs rising and same-store sales falling, Portillo’s executed a round of corporate layoffs last week, trimming 18% of its Oak Brook, Illinois-based workforce.

The iconic Chicago hot dog-and-beef chain announced the downsizing during a second quarter earnings call Wednesday as it continues to search for the recipe to catalyze growth amid a challenging restaurant environment.

“While never an easy decision, it is imperative that we examine areas of the business where we can operate more efficiently and ensure our resources and future investments are directed at the right priorities,” Brett Patterson, Portillo’s CEO, said in a news release. “These actions, along with other efficiencies, will support our long-term growth strategy.”

The layoffs included an undisclosed number of employees at the Portillo’s corporate headquarters along with “a limited number of field management roles,” but no restaurant-level employees were impacted, the company said.

Portillo’s had about 200 employees at its corporate offices prior to the downsizing, the company told the Tribune Thursday. Doing the math, that would put the total number of layoffs at about 36 corporate employees.

“We offered several impacted team members the opportunity to take an in-restaurant role rather than leave the company,” Portillo’s said in a statement. “The team members who accepted that option are now working at restaurants both in Chicago and across our system.”

Portillo’s implemented a reset strategy last year amid sluggish sales, scaling back expansion plans and shaking up its executive ranks with the departure of CEO Michael Osanloo in September.

Patterson, an industry veteran whose resume includes executive roles at Outback Steakhouse, Ruby Tuesday and Olive Garden, took the reins at Portillo’s in February.

During the second quarter, Portillo’s saw chainwide revenues increase by 5.6%, mostly from the opening of eight restaurants in 2025 and seven more this year. But same-store sales in the second quarter decreased by 1.2%.

Restaurant traffic was down by 3.4% in the second quarter, which was partially offset by higher menu prices. Portillo’s raised select menu prices in April by 2% to “address inflationary cost pressures,” the company said.

Total restaurant operating expenses for the second quarter were up 8.1%, primarily driven by higher beef and produce costs.

The July 31 corporate layoffs will result in approximately $1.1 million in restructuring charges, the company said in a filing with the Securities and Exchange Commission.

During the earnings call, Patterson said the corporate downsizing, supply chain efficiencies and smaller new restaurant buildouts will create $10 million to $15 million in annualized savings.

Launched as a Villa Park hot dog stand in 1963, Portillo’s has grown to 109 restaurants in 11 states. While expansion has slowed, it opened seven new restaurants this year – all in Texas – including its first airport location at Dallas-Fort Worth International.

Portillo’s plans to open one more location this year – a new flagship storefront restaurant on North Michigan Avenue.

Last month, the chain announced it is also planning to open its first Wrigleyville location next year about a block south of Wrigley Field, including a small indoor dining area and takeout service featuring Portillo’s first walk-up window.

Despite sluggish sales across the chain, Patterson noted during the earnings call Wednesday that Chicago-area Portillo’s are bucking the national trend.

“Chicagoland is performing very well,” Patterson said. “They performed very well in quarter two and continue to perform very well at the beginning of quarter three.”

Beyond corporate downsizing, Patterson has recently made a number of key hires, including new executive chef Christopher Hansen, who joined Portillo’s last month after serving in the same role at Guzman y Gomez, the fast-casual Mexican chain that abruptly shut down its U.S. operations in May. On Tuesday, Portillo’s named former Darden executive Kevin Kalicak as CFO effective Sept. 7.

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