Better Leaders Make Better Burgers

[00:00:00] I'm Felicia Shakiba and this is CPO PLAYBOOK, where we solve a business challenge in every

[00:00:07] episode.

[00:00:08] This week, we're focusing on a delicious slice of the restaurant industry, inspired

[00:00:15] by tales like the gripping TV series The Bear, which portrays the gritty battles behind

[00:00:21] running a beloved sandwich spot in Chicago.

[00:00:24] Our spotlight is on Portillo's, a cherished name that, like many before it, faced significant

[00:00:31] hurdles as it ventured beyond its Chicago heartland.

[00:00:35] In response, their Chief People Officer Jill Waite cooked up IGNITE, a leadership development

[00:00:41] program designed to equip their future leaders.

[00:00:45] This strategic initiative wasn't just about filling positions, it was about fostering

[00:00:50] leaders who could embody and spread Portillo's distinct culture and values, ensuring every

[00:00:57] customer at every location got a taste of what makes Portillo's special, no matter how far

[00:01:04] from Chicago they are.

[00:01:06] Jill, thank you so much for being here.

[00:01:09] Thank you, Felicia, for having me.

[00:01:10] It's an honor to be here today.

[00:01:12] Jill, for our listeners who are not familiar with Portillo's, can you share some general

[00:01:17] context about the business?

[00:01:19] We were founded in 1963.

[00:01:21] We have over 80 restaurants across the United States with over close to 9,000 team members,

[00:01:27] which we're really excited about.

[00:01:29] We have many all-American favorites.

[00:01:32] Our Chicago style hot dogs, our sausages, our famous roast beef, some additional heroes,

[00:01:38] our hamburgers, chopped salad and our delicious and famous chocolate cake.

[00:01:44] Mmm, chocolate cake.

[00:01:46] It is amazing, and you can also put it in a shake, which was developed by our team

[00:01:51] members and it is loved by many of our guests.

[00:01:54] Well, that will be the next thing I order for sure.

[00:01:57] How did you identify that retention of managers was the key problem to address?

[00:02:06] So we identified that the retention of managers was a challenge, most specifically

[00:02:12] with our external managers, and it was identified a few different ways.

[00:02:16] One, the organization had been tracking our retention of hourly team members as well

[00:02:23] as management and comparing it to industry.

[00:02:26] We also teased out the data to say of those that we were losing, who were they and

[00:02:31] when did they leave?

[00:02:32] So it helped us to dive deeper into root cause.

[00:02:35] Separately, we spent time in our restaurants and in the markets trying to understand

[00:02:39] who was leaving, why, and so that way we could get direct in-market feedback so we

[00:02:46] could fix the root cause of some of the challenges we were seeing with our external

[00:02:50] leaders who were leaving.

[00:02:53] And what were those particular differences that you found between external managers

[00:02:59] coming in versus the internal managers that you were promoting?

[00:03:02] So we had kicked off our talent planning and succession process because we were

[00:03:07] a growing organization.

[00:03:08] We wanted to be able to predict and plan out our bench.

[00:03:11] And as we were doing that process, one of the things that we were learning is

[00:03:16] with our experiential brand, our expansive menu, we have some of the highest AUVs

[00:03:23] in the restaurant industry.

[00:03:24] And our average restaurant has about 87 team members, which is pretty

[00:03:29] significant in the quick service and fast casual restaurant environment.

[00:03:33] And we had to identify that leadership skills were truly critical in achieving

[00:03:41] success at Portillo's because you're leading 80, 17 members.

[00:03:45] The guest experience is really important.

[00:03:47] Our guests have a very high standard of the experience that they're

[00:03:51] desiring.

[00:03:52] And so not all those skill sets we found that our leaders were coming with.

[00:03:56] And so when we put them in our restaurants leading our boxes,

[00:04:00] especially in newer markets where it may not have as much support as Chicago did,

[00:04:06] they struggled to find success.

[00:04:08] And so in return, they were leaving.

[00:04:11] Got it.

[00:04:11] And then when you're looking for internal managers to promote and creating

[00:04:17] this succession process, how did you identify the high potential employees

[00:04:22] for the program?

[00:04:24] Our internal leaders, many of them started as hourly team members.

[00:04:28] And so we hire and look for individuals who are passionate about our purpose

[00:04:32] and our values.

[00:04:33] Our values are family greatness, energy and fun.

[00:04:35] And our purpose is about creating lifelong memories with our

[00:04:38] unrivaled experiences.

[00:04:39] One of the other things we had identified with our external leaders,

[00:04:42] we weren't necessarily hiring for leadership skills or a love for

[00:04:45] delivering our purpose and our values.

[00:04:47] We were at the time looking for have you worked in a restaurant?

[00:04:50] Have you been a leader in a restaurant?

[00:04:52] And so when we were assessing and looking at our internal talent, our

[00:04:56] internal talent very much spent time on every single station.

[00:05:00] So they had the understanding of what it feels and looks like to work at

[00:05:04] our Portillo's and delivering that guest experience.

[00:05:07] They also gained skills of teamwork because to make a Portillo's run,

[00:05:12] you have to work as a team.

[00:05:13] And so they were gaining communication and leadership skills by the nature

[00:05:18] of the frontline position.

[00:05:20] So as they were growing with the organization, they were already able to

[00:05:23] try on these skills and quickly adapt to each of the positions that they were

[00:05:27] being developed and grown in.

[00:05:28] So their ability to develop was faster and had a good foundation compared to

[00:05:34] individuals that were coming into the organization at the time.

[00:05:38] So maybe learning on the fly was an important competency.

[00:05:42] And what were the other core competencies that you were really looking for?

[00:05:48] As it relates from a leadership standpoint, it is communication.

[00:05:51] Can you communicate with one another, whether it be what's going on at any

[00:05:57] given point with a guest, with a team member, with the volume that's

[00:05:59] happening, our lunchtime and dinners are by day and in a good way.

[00:06:04] But it requires a sense of urgency and communication that's truly unmatched.

[00:06:09] The relationship building is critical.

[00:06:11] So 87 team members of all different generations to motivate, to inspire

[00:06:16] and to engage them and our team members being able to engage and

[00:06:19] inspire one another.

[00:06:20] We were looking for that because we knew and saw that there would be great

[00:06:23] leaders. And then also, can you hold people accountable when you have that

[00:06:27] many guests that you're serving and all of our food is custom made to the

[00:06:31] guest and to the team member?

[00:06:33] Individuals want to be held accountable to the expectations that we're setting.

[00:06:36] So it was really a combination of those soft skills that we saw would help

[00:06:41] our leaders achieve success.

[00:06:44] That's awesome to just think about a lunch order time frame and how fast the

[00:06:49] restaurant has to be moving.

[00:06:51] And all of those competencies make a lot of sense and how you shared them.

[00:06:56] So thank you for that.

[00:06:57] You're welcome.

[00:06:58] What was the process of developing the Ignite program, which essentially

[00:07:04] was your hypo program, your high potential program, and who were the

[00:07:09] stakeholders involved?

[00:07:12] So the Ignite program came from our growth plan.

[00:07:15] So growing 10 plus restaurants a year, and we have aspirations for even more.

[00:07:20] And our restaurants have at least seven leaders between our general manager

[00:07:24] and the positions that are supporting the general manager.

[00:07:27] When we looked at our pipeline, we know we needed a lot of talent, both

[00:07:30] internally and being able to hire externally.

[00:07:33] And when we grow outside of Chicago and even within Chicago, we want to

[00:07:37] make sure that we are delivering the best, the portillas experience that

[00:07:40] our guests want and that they deserve.

[00:07:43] And so we wanted to ensure that our experience was able to be replicated

[00:07:47] across the U.S., regardless of where somebody was at.

[00:07:50] And we didn't have a formalized program that would allow our internal

[00:07:55] team members to grow their careers.

[00:07:58] Essentially, what would happen is if someone wanted to be promoted, they

[00:08:01] were promoted, and then we trained them how to do the job on the job.

[00:08:05] And that doesn't set anyone up for success.

[00:08:06] So we said, why don't we identify the talent, them identify themselves so

[00:08:11] we have applications people can apply if they have an interest for

[00:08:14] growing with our organization.

[00:08:16] So we essentially worked with a third party.

[00:08:19] We hired a partner who we knew could help us develop the program and

[00:08:22] we leverage our learning and development team.

[00:08:25] They were the spearhead of this whole thing, as well as our operations

[00:08:29] partners. So there were many individuals across the organization that

[00:08:32] really helped us developing a night and leveraging a company called

[00:08:35] Experience Counts that helped bring this to life across all of our

[00:08:38] positions in leadership.

[00:08:40] Interesting. How was the program designed?

[00:08:43] So how much time did it take and what were the various activities or

[00:08:48] learning modules that went into the program?

[00:08:51] So we wanted to ensure that it was a blended learning approach.

[00:08:55] And one of the other pieces that was really important is that it was

[00:08:58] built on the framework of a cohort, that individuals would enter the

[00:09:02] program at the same time and then they would graduate at the same time.

[00:09:06] And the reason why that was important is we wanted our team

[00:09:09] members who were in the program to feel a sense of community and

[00:09:12] connection and support because they're learning new skills that are

[00:09:15] going to probably make them feel very uncomfortable because they're

[00:09:17] trying on things that they've never done before.

[00:09:19] And when you have somebody that's doing this alongside you, you get

[00:09:22] a sense of confidence.

[00:09:23] And Dick Portillo, who founded Portillo's, he built the

[00:09:26] organization based on the military training principles.

[00:09:29] And so if you think about basic training, it's very similar.

[00:09:32] You go in together and you graduate together.

[00:09:35] Very similar to this.

[00:09:36] Our team members are in a cohort.

[00:09:38] The blended learning is a combination of webinars that they're all on together.

[00:09:42] They do practical application experiences in the restaurant because

[00:09:47] we really want it to be hands-on.

[00:09:48] They're getting their hands dirty shoulder to shoulder with other

[00:09:50] leaders who are their mentors.

[00:09:52] And then they also do online and they come here to the support center,

[00:09:56] our leadership classes.

[00:09:57] And this is where they are bringing everything that they've been

[00:10:01] learning in the restaurants and then continuing to elevate that

[00:10:04] skill set in a classroom setting, but it's very experiential at the same time.

[00:10:09] I like that it's very experiential.

[00:10:11] I think hands-on learning is absolutely the way to go if you can do it that

[00:10:17] way in any type of learning and development program.

[00:10:20] It is, and it's worked well for us.

[00:10:22] It's been a combination too of the leadership skills that individuals need.

[00:10:26] Cause sometimes you could see programs that they're very

[00:10:28] focused on the job skill.

[00:10:30] Do I know how to make a schedule?

[00:10:31] Do I know how to read this report?

[00:10:34] And that's still very important.

[00:10:35] That is very much still a part of the program, but we also know that you

[00:10:38] need the leadership skills in order to be able to have the right business

[00:10:42] vacuum to read their report.

[00:10:43] Do they have the right developing talent?

[00:10:45] Because it's not the company's job to develop the talent.

[00:10:48] It's our leader's job to develop the talent.

[00:10:50] So do our leaders know how do you develop talent and

[00:10:52] create an engaged workforce?

[00:10:54] We combine the skill sets together.

[00:10:56] That's not one or the other, but it is a blend of both.

[00:10:59] What were the outcomes that you've seen from this Ignite program thus far?

[00:11:06] Well, all of our new restaurants are open with an experienced

[00:11:09] general manager and that is very important to us because we know when

[00:11:13] we open our new restaurants with an experienced general manager who has

[00:11:17] worked in a Portillo's has been developed within the organization.

[00:11:21] We see a higher success rate in those restaurants and with our growth plans.

[00:11:26] That's something that's really important to us.

[00:11:28] We've also seen our retention improve and we have some of the best

[00:11:32] retention from a leadership standpoint, but also an hourly turnover.

[00:11:36] And we have a pipeline of talent that's ready for our growth,

[00:11:39] which I think is really important, not only for the company,

[00:11:41] but for individuals as well.

[00:11:43] We are able to show our team members that they can have a career here.

[00:11:46] You started as hourly team member, work in the restaurant support center.

[00:11:50] You can work in the restaurants all the way to be a market manager for us.

[00:11:54] Really the career opportunities are endless.

[00:11:57] It's just up to the team member to raise their hand and us to also

[00:12:00] engage with them and have that conversation.

[00:12:02] So from a results standpoint, we're a results based organization.

[00:12:05] We need to be able to deliver our results in that guest experience.

[00:12:10] So I heard success rate.

[00:12:12] How do you measure success?

[00:12:13] What would be those metrics?

[00:12:15] Yeah.

[00:12:15] So we have an 80% internal promotion rate and so 80% of our leaders

[00:12:20] that are that are graduating because we still believe in hiring externals

[00:12:23] as well as you need to have a blind within an organization.

[00:12:25] And so 80% of our leaders are internally developed and our retention is double

[00:12:31] digits better than than the top fast, casual quick service in the industry.

[00:12:35] So we are really proud of those numbers and same thing with our team members.

[00:12:38] Our team member retention consistently beats out the industry by

[00:12:42] generally double digit numbers.

[00:12:44] And so we attribute that to the leadership skills that are

[00:12:47] being instilled in our leaders and that they're seeing this as a place

[00:12:49] that they can grow their careers and leverage these skills both in

[00:12:53] portillo's and without portillo's.

[00:12:55] We understand that these skills are really transferable wherever.

[00:12:59] Absolutely.

[00:12:59] When you think about the soft skills, they're very much transferable

[00:13:02] because they're part of the human, not the job.

[00:13:05] And that's an incredible success rate.

[00:13:07] I mean, it's no wonder where Pertillo's is as successful at as it is today.

[00:13:13] Learning and development I know is often a key factor in employee engagement.

[00:13:19] Did the program have any impact on engagement and motivation?

[00:13:24] Our engagement year over year has continued to improve.

[00:13:27] And even in the year right after COVID, where Gallup had reflected data

[00:13:32] that engagement had declined across the United States, our engagement

[00:13:36] scores actually increased, we bucked the trend.

[00:13:38] So that was another metric that we consistently look at to see is

[00:13:42] our human capital strategy working.

[00:13:45] And so our engagement scores continue to rise.

[00:13:48] We also have extremely high participation and participation is important

[00:13:52] because if team members didn't care about the organization or didn't feel

[00:13:55] like they had a voice, that they wouldn't participate in our surveys.

[00:13:58] And so we have close to 90% participation across our restaurants,

[00:14:02] our restaurant support center, as well as our commissary.

[00:14:05] So it's another way that is an indicator that the work between

[00:14:08] Ignite, the work between Total Rewards and providing the right

[00:14:12] culture to the organization is something that our team members

[00:14:15] are really passionate about.

[00:14:17] How do you measure engagement?

[00:14:19] Do you use surveys?

[00:14:20] How often are those surveys to collect qualitative data differently?

[00:14:25] How do you measure engagement?

[00:14:27] Yeah, feedback from our team members is really important.

[00:14:29] So we have several different ways of how we do that.

[00:14:31] We do use a annual engagement survey.

[00:14:34] We action plan off that to ensure that we are continuing to leverage

[00:14:38] our strengths that our team members have said, Hey, keep doing this.

[00:14:41] This is working for us.

[00:14:43] And then there are areas that we could improve.

[00:14:44] And so those are areas that we action on.

[00:14:46] We do consistent round tables and it's not just the people team

[00:14:51] that conducts the round tables.

[00:14:52] It's our market managers as well.

[00:14:54] Our team member engagement in how they feel about the organization,

[00:14:57] but also the business isn't just the responsibility of the people team is

[00:15:00] the responsibility of our operations partners.

[00:15:03] And they very much believe that.

[00:15:04] And so they conduct the round tables because they get to hear

[00:15:07] directly from the teams on what's working in the restaurant and what's not.

[00:15:11] And we can immediately give that feedback to the general manager.

[00:15:14] And additionally, we hold listen or lunch and learns quite regularly,

[00:15:18] ranging from Michael, our CEO to myself, different individuals

[00:15:21] across the organization do it because we just know that being able to hear

[00:15:25] directly from our team members on what is working in the organization

[00:15:29] and what is not allows us to quickly pivot and make changes,

[00:15:33] whether that be to benefit or to something operational.

[00:15:36] We're able to do that based on the connections

[00:15:39] and the ways that we listen to their team members.

[00:15:41] And by roundtable, do you mean focus groups?

[00:15:45] Many focus groups.

[00:15:46] So our restaurants, we look at it in our day shift, night shift and weekend.

[00:15:50] So we want to make sure we have a sprinkle of team members.

[00:15:52] Some of them, they volunteer here.

[00:15:54] I'd really want to spend some time.

[00:15:55] And it's generally no more than five to eight team members,

[00:15:59] sometimes even less than that.

[00:16:00] And it is just an open forum asking questions.

[00:16:03] So what's working today? What can we improve?

[00:16:05] What are you most proud of?

[00:16:06] And then learning a bit about the team members as well.

[00:16:09] So we don't just jump into business because that's always easy.

[00:16:11] You can jump into the things that can improve,

[00:16:13] but we spent some time getting to know our team members

[00:16:16] and learning their stories because a lot of times

[00:16:18] their stories also help influence where we're going.

[00:16:21] What's the environment that you collect this feedback?

[00:16:22] Do you go to every store to do this or you do go to every store?

[00:16:27] Every restaurant should have at least one roundtable a year

[00:16:30] and other restaurants have them once a quarter.

[00:16:32] So it really just depends.

[00:16:33] And same thing with here at the support center will hold lunch

[00:16:36] and learns in order to gain that insight.

[00:16:38] And so what happens is the individual that's facilitating it

[00:16:42] will take it qualitative.

[00:16:43] So there are some qualitative questions we ask and then there's some quantitative.

[00:16:46] So that way we can see what type of scoring the restaurants receive.

[00:16:49] And then we look for trends across all of the different information

[00:16:53] that we receive, because it's all put into a system

[00:16:55] and we're able to report on that.

[00:16:57] Got it. So you found the challenge.

[00:17:00] You filled the need with a program that clearly was highly successful.

[00:17:05] What needs surfaced as next steps

[00:17:08] after the program was successful?

[00:17:11] The ongoing next steps is continuous learning.

[00:17:14] Learning doesn't stop.

[00:17:15] So Ignite has been intended to because we have it at every level

[00:17:19] for general managers, AGMs, restaurant managers and our crew chiefs.

[00:17:23] The program is intended to help our leaders

[00:17:24] have the basic foundations for those roles.

[00:17:27] However, the roles are expansive.

[00:17:28] And so the learning has to continue through position development plans.

[00:17:32] And it's not just, hey, I graduated.

[00:17:34] I'm good to go. I've been promoted and I'm done learning.

[00:17:37] The learning has to continue because of our growth,

[00:17:40] but also as individuals, as lifelong learners,

[00:17:43] it's important that we continue to sharpen that saw.

[00:17:46] So that's our biggest challenge right now is helping to instill

[00:17:49] that learning is continuous and Ignite is just one part of the journey.

[00:17:53] But the journey continues as individuals.

[00:17:56] We have to own our own development

[00:17:58] and we have a variety of different tools of how we do that.

[00:18:00] We partner with a company called For Coaching.

[00:18:02] We have LinkedIn Learning. We have mentors.

[00:18:04] So there's a variety of different ways.

[00:18:06] It's continuing to build that continuous learning and development culture

[00:18:10] post the program.

[00:18:12] What were the greatest challenges that you faced

[00:18:15] in implementing the Ignite program?

[00:18:19] The greatest challenges in implementing the Ignite program

[00:18:23] was getting the alignment of this is what individuals will learn

[00:18:29] in each of the programs and not expecting that they're going to learn everything.

[00:18:33] We as humans, we can only take in so much information

[00:18:36] and then being able to practice it in order to really master it.

[00:18:41] And I think as humans, we want them to learn everything at one time.

[00:18:44] We want them to have it all.

[00:18:46] We just can't.

[00:18:47] And so being able to align as leaders within the organization

[00:18:51] that this is the most important information and knowledge

[00:18:55] and experiences that they need to have while they're in Ignite.

[00:18:58] And then knowing that, yes, there's going to be skill gaps.

[00:19:02] There is. But we're going to address that skill gap

[00:19:04] after they graduate through these position development plans.

[00:19:08] That's been the biggest challenge of helping individuals

[00:19:11] realize that they're not going to come out knowing everything and that's OK.

[00:19:15] But they will over time continue to gain that additional knowledge.

[00:19:19] You mean they're not going to have superpowers

[00:19:20] when they come out of the Ignite program, too?

[00:19:23] Not generally.

[00:19:24] They're not going to have the cake shake superpower.

[00:19:26] I have not yet seen that, but maybe someday that could happen.

[00:19:30] But not right now.

[00:19:31] Superpower, the cake shake.

[00:19:33] That's the superpower, the cake shake.

[00:19:35] Where do you see the leadership development program going in the future?

[00:19:40] Because we talked about continuous learning.

[00:19:42] They're not going to learn everything.

[00:19:44] So what is that next step look like?

[00:19:45] It's continuing to expand it throughout the organization.

[00:19:48] So it is really formalizing that continuous learning path.

[00:19:52] So when we say you have a position development plan,

[00:19:54] what does that look like?

[00:19:56] What does that sound like?

[00:19:57] What does that feel like?

[00:19:58] And have we modulize all the different curriculum

[00:20:03] that our leaders do need to know?

[00:20:04] Because some of it is still in people's minds

[00:20:07] and we have to get it from people's minds

[00:20:08] into different courses or curriculum.

[00:20:11] So it continues to allow us to scale the business

[00:20:13] from the 35 restaurants we once were here in Chicago,

[00:20:16] a nationwide chain in so many different states.

[00:20:20] So that's a key piece.

[00:20:21] And then second, expanding it to our restaurant support center

[00:20:25] and in our commissary.

[00:20:26] So we continue to have one language

[00:20:28] and one approach of how we grow and develop our leaders

[00:20:31] across the organization.

[00:20:33] The experiences may be a little different based on,

[00:20:35] call it a corporate headquarter

[00:20:37] or a corporate office environment versus a restaurant,

[00:20:39] but communication is communication.

[00:20:41] And so that expansion to include more leaders into this

[00:20:46] is something that we are continuing to explore.

[00:20:49] Taking a step back and looking at Ignite

[00:20:54] and how it fits into the philosophy of Portillo's

[00:20:57] learning and development strategy.

[00:21:00] How do you see it being a part of the bigger picture?

[00:21:05] Our strategy is really founded based on our purpose

[00:21:07] and our values.

[00:21:08] When we took a step back and said,

[00:21:10] what do we want our learning

[00:21:11] and development philosophy to look like?

[00:21:13] It was grounded on creating lifelong memories

[00:21:16] with our unrivaled food and experiences,

[00:21:18] founded on family greatness, energy and fun.

[00:21:21] And part of our greatness value is continuous

[00:21:23] improvement and part of the purpose

[00:21:24] of unrivaled experiences.

[00:21:26] So as we were and do create our curriculum,

[00:21:30] we say, does this create an unrivaled experience

[00:21:32] that our leaders are going through?

[00:21:34] Are we instilling continuous improvement,

[00:21:36] which is a core part of our values as an organization.

[00:21:40] And it also stems from at the highest levels

[00:21:43] of the company.

[00:21:44] So our CEO very much believes in development.

[00:21:47] So each of us as a senior team member

[00:21:49] has our own individual development plan

[00:21:52] that we review every quarter

[00:21:53] to see how we're progressing against it.

[00:21:56] And it includes things like exposure,

[00:21:58] experience, education.

[00:22:00] Many of us have executive coaches

[00:22:02] to help us continue to grow and develop

[00:22:04] and become the best leader that we can be

[00:22:06] in that permeate throughout the organization.

[00:22:08] So it's the fabric of who we are

[00:22:10] back when Dick founded the organization

[00:22:13] and it continues to thrive with our current leadership team

[00:22:17] and our learning and development philosophy.

[00:22:19] Well, I see a very, very bright future for Pertillo's

[00:22:23] considering all things you've shared today.

[00:22:26] So Jill, thank you so much for being here.

[00:22:28] This was a pleasure.

[00:22:30] Thank you.

[00:22:31] It's a great future because of our 9,000 team members

[00:22:34] and the experiences that they provide

[00:22:36] and care for with our guests.

[00:22:38] So thank you.

[00:22:39] It's an honor to be here

[00:22:39] and to connect with you about this.

[00:22:41] That's Jill Waite, Chief People Officer at Pertillo's.

[00:22:47] If today's episode captured your interest,

[00:22:50] please consider sharing it with a friend

[00:22:53] or visit CPOPlaybook.com to read the episode

[00:22:56] or learn more about leadership and talent management.

[00:23:00] We greatly appreciate your rating, review

[00:23:02] and support as a subscriber.

[00:23:05] I'm Felicia Shakuba.

[00:23:06] See you next Wednesday and thanks for listening.