In a large skillet, cook chopped bacon over medium-low heat until crisp. Remove bacon from pan with slotted spoon and drain on paper towels. Remove bacon drippings from pan and reserve.
Working in batches, add 1/4 cup bacon drippings, potatoes, onion, salt and pepper to pan; toss to coat. Cook and stir over medium-low heat until potatoes are golden brown and tender, 15-20 minutes, adding more drippings as needed. Stir in cooked bacon; serve immediately.