It might seem odd when a burger chain begins to offer tacos, or when a taco shop suddenly serves chicken nuggets and fries, but it has worked for some.
In recent years, it has become increasingly common for food chains to expand beyond their traditional offerings and venture into new markets to better compete with rivals and adapt to evolving consumer trends.
💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰
The burger chain Jack in the Box’s most popular item is its tacos, Taco Bell’s new chicken nuggets dominate the fast-food chicken market, and Subway’s pizza is arguably better than that offered by many pizza chains.
Taking risks can be very lucrative if executed properly, but when wanting to expand the menu into an entirely new category, the risk is higher than adding a single item.
Related: Portillo’s to make a crucial final decision this summer
Anyone can sell a hot dog, but none compares to the Chicago-based Portillo’s. For over 60 years, it has served its beloved Chicago-style hot dogs, Italian beef sandwiches, and homemade chocolate cake, which has helped it gain a loyal fan base and grow to over 94 locations across nine states.
Now that the restaurant chain has dominated the hot dog market, it wants to dive into an unexpected category.
Portillo’s gives a major update on its breakfast menu.
Chicago Tribune/Getty Images
Portillo’s introduces new breakfast menu at select locations
Portillo’s (PTLO) launched its first-ever breakfast menu in April, featuring signature morning staples that Chicago locals love, including various breakfast sandwiches, chocolate cake donuts in collaboration with Stan’s Donuts, multiple sides, and handcrafted coffee beverages.
Although an exciting introduction, the restaurant chain revealed that the new breakfast menu was a pilot and would initially only be available at five restaurants in the Chicago area from 6:30 a.m. to 10:30 a.m.
The selected Portillo’s restaurants included Niles, Chicago -South Loop, Shorewood, Elmhurst, and Tinley Park locations, as stated on its website.
Related: McDonald’s brings back unexpected breakfast item after 6 years
This left many breakfast enthusiasts wondering if Portillo’s had any plans to expand the offering eventually. A few weeks later, the restaurant chain gave an answer that may have killed many fans’ hopes.
Portillo’s CEO, Michael Osanloo, said during the company’s latest earnings call that the feedback from its breakfast pilot has been positive. Still, this doesn’t mean it will become available at all locations nationwide.
However, the company reassured fans that it would continue to monitor the progress of the breakfast test throughout the summer and gather all the metrics necessary to ensure success before making any expansion decisions.
Portillo’s gives an update on rollout of its breakfast menu
Adding a breakfast menu could be a significant asset for the company, since it would extend operation hours and potentially increase sales.
Although it sounds like an easy money maker, all chains would offer breakfast if it were that easy. Unfortunately, many have tried but failed in the process.
Portillo’s primary concern with this expansion was that if not handled properly, breakfast could hurt the bounceback in lunch preparations, affecting overall operations.
More Food News:
McDonald’s menu adds new happy meal fans will loveHershey creates new guilt-free candy that’s a dream comboPopular chicken chain brings back beloved menu item after 7 years
However, the results of this pilot and workers’ resiliency led Portillo’s to announce that it will expand its breakfast menu to more locations.
Starting June 17, five additional locations within the Chicago area will now offer the limited-time breakfast menu during the same hours. These include Summit, Skokie, Glendale Heights, Harwood Heights, and the North Side of Chicago.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
