Potbelly Expands with 192 New Development Agreements

Estimated read time: 4 minutes and 11 seconds

POTBELLY DELI

Potbelly Corporation is expanding its number of sandwich shops across the U.S. with new development agreements. (Read More)

Potbelly Corporation announces ambitious growth plans.

• New Development Agreements: Potbelly signs 192 development agreements for sandwich shops across the US, setting the stage for rapid expansion in 2024.

• Expanded Reach: The shop development agreements cover various states including New York, Maryland, Florida, Ohio, Washington, Arkansas, North Carolina, Tennessee, and Texas.

• Franchise Operators: Potbelly's franchise operators come from well-known restaurant brands like Burger King, Dunkin', Wendy's, and Wingstop.

• Long-Term Goal: Potbelly aims to reach 2,000 shops, with around 85% of locations being franchised.

• Founder's Involvement: Potbelly founder and former CEO Bryant Keil, along with his son Hampden, are among the franchisee partners in the agreement.

"Our 5-Pillar Strategy": Potbelly's CEO expects continued growth and success, highlighting the brand's traffic-driven profitability, franchise unit expansion, and positive sales and traffic growth in 2023.

Expanding the Unique Potbelly Experience: With 425 sandwich shops in the US, including approximately 75 franchised locations, Potbelly is actively pursuing expansion in new and existing markets to bring its distinct experience to more customers.

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NET LEASE NUGGIES

• Convenience store industry continues to grow in the United States. The 2024 NACS/NIQ Convenience Industry Store Count shows that there are now 152,396 convenience stores in the country, a 1.5% increase from last year. Texas leads with 16,304 stores, while only seven states saw a decline. Small operators (one to ten stores) make up the majority with 96,156 locations. Convenience stores sell 80% of fuels purchased in the US, with 120,061 stores selling fuels. Other brick-and-mortar channels experienced different growth rates. (Read More)

• Inflation Impacts Franchise Industry, but Efforts to Cope Show Resilience: The franchise industry is feeling the effects of inflation, as evidenced by the bankruptcy declarations of three major Burger King franchise groups. However, the industry is finding ways to adapt and meet challenges. Strategies include marketing to boost traffic, implementing technology to cut labor expenses, and remodeling or constructing new locations to improve the customer experience. Despite declining QSR traffic, studies show pent-up demand among consumers. Franchisors are also using loyalty programs and digital marketing to drive growth. Lowering expenses through operational efficiencies and securing financing for growth are also top priorities. Overall, franchisors are focused on controlling costs and managing cash flow while attracting more customers. (Read More)

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