Should Portillos Change?

[baileyvpotter]

Originally Posted by BleedCubbieBlue

The problem is that if an investment group gets Portillo's then they'll have to inevitably change the formula that works. Mr Portillo is currently very successful, and a big part of that is that he sticks to what works. An investment group will have to report increases every quarter/year and therefore will have to look at cutting costs or increasing sales every year. Mr Portillo currently doesnt have that need. He's ok wih making a steady 10M a year lets say. Any investment group will want to make 10M year 1, 12M year 2, 15M year 3, etc. This will lead to the eventual decline in quality and service. Sad that a great place such as portillos will be ruined by capitalism.

I think you make a good point and it is a valid concern to those of us who enjoy Portillo's.

[chet everett]

Originally Posted by BleedCubbieBlue

The problem is that if an investment group gets Portillo's then they'll have to inevitably change the formula that works. Mr Portillo is currently very successful, and a big part of that is that he sticks to what works. An investment group will have to report increases every quarter/year and therefore will have to look at cutting costs or increasing sales every year. Mr Portillo currently doesnt have that need. He's ok wih making a steady 10M a year lets say. Any investment group will want to make 10M year 1, 12M year 2, 15M year 3, etc. This will lead to the eventual decline in quality and service. Sad that a great place such as portillos will be ruined by capitalism.

Any firm that has tried to "cut costs" such that there is a DECLINE IN QUALITY neither serves it customers or investors.

Even when McDonalds gets flack from its many franchisees over promoting the "dollar menu" and low margin items you don't see the operators say "we'll have to get even lower grades of slop to stay in business" INSTEAD the franchisees that have a bit more sense and pay attention to trends that hurt their competitiveness just ask for more products that respond to trends in consumer demand -- more "premium" burgers, wider range of options for premium beverages, healthy options etc...

It is not "capitalism" that forces crummy chains into bankruptcy it is idiots that try to cut corners!

[ChicagoMeO]

they better not change my Poppyseed chicken salad item!!!!! no one makes that salad better than Portillos and no one makes it taste like that either. I would surely miss it if it changed or was eliminated, for that matter, their chopped salad is DELICIOUS!!!

[MPowering1]

Originally Posted by chet everett

Read much?

What's wrong with Burger King?

Report: Denny's, Wendy's and Domino's among restaurants in danger of bankruptcy - newsnet5.com Cleveland

Quiznos Follows Sbarro Into Bankruptcy Court - Bloomberg


Chains that are ubiquitous but unprofitable are not interesting to investors. Turning around a chain of dumpy stores that are out of favor with the food trends are waste or time and money. Celebritiy type "business men" don't really add value for investors either, though they do make for TV shows that the idiot hordes seem to flock to...

Actually, I do read about this. A company can file bankruptcy without having dismal numbers - and there can be potential for a healthy outlook even if they file. Dismal numbers generally mean they're closing their doors, which isn't likely to happen in the case of Wendy's or Burger King.

Part of the struggle some of these large QSR's have is that when the economy plummeted, their sales went up when family dining and casual dining restaurants, and independents in all categories, struggled and went out of business. People were still going to the large QSR's because they could eat something for a dollar, or they could order pizza and feed their family for less than if they were cooking at home. Now the economy has improved, people are going back to family dining and casual dining restaurants and spending fewer of their dollars at the QSR's.

If a company like Burger King or Wendy's files bankruptcy, they will reorganize and move on, as so many large companies do.

Burger King Global Sales Up in 2013, But North America Down | News - Advertising Age