Portillo Restaurant Group, Value Chain

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  • Topic: Costs, Variable cost, Management accounting
  • Pages : 2 (446 words )
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  • Published : March 8, 2013
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Portillo Restaurant Group, Value Chain
The first Portillo’s hot dog stand known as “The Dog House” opened in 1963 on North Avenue in Villa Park. Owner was create a small cart to sell a hotdogs. They used a budget about $1,100 and then 4 years later the business was succeed. He remodeled a new restaurant and over the years later has grown into a successful multi-state operation. Now 2013, The Portillo Restaurant Group is the recipient of numerous awards and is the largest privately-owned restaurant group in the Midwest. This was all accomplished without franchising or investors. Combined, the concepts have over 4000 employees and a total of 50 restaurants, plus a catering and shipping division and two shopping plazas. The company have 50 restaurants in USA .In each restaurant own land by owner so they do not have to spend rent for space. But the estimate price for fixed cost in this kind of business average about 30% from total profit for example fixed cost can be up and down depend on the location ,if you have a good location you will get more customers and fixed cost for rent will be increase. In each restaurant have fixed cost averages 30% .

Average variable cost in my opinion that should be 45% from total profit but can be more or less depend on how the business work. They have many factor can be effect to variable cost ,such as labor, cooking gas, food cost, electric bill, and etc. On other hand, if the business get well variable cost will be increase more worker, more food cost ,use more cooking gas but the company will be get more revenues too.

Average revenues that can calculate from profit=revenues-(fix cost+ variable cost) and I got some information from (http://wiki.answers.com/Q/How_much_does_Dick_Portillo_of_Portillo's_earn) and he got 70 million a year at 25% profit ,then you can know average revenues will be profit= revenues- (fix cost+ variable cost)

(70 Million =25%) 25% = revenues -...
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