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Who is Potbelly Sandwich Works and what should we know about you?
Potbelly Sandwich Works is an iconic neighborhood sandwich shop concept that debuted over 40 years
ago and has been feeding customers’ smiles with warm, toasty sandwiches, signature salads, hand-dipped
shakes, and other fresh menu items ever since. Our history began in 1977 when our founder, Peter
Hastings, started offering oven-toasted sandwiches to customers inside his small antique store in Chicago’s Lincoln Park neighborhood. While the store was originally focused on selling refurbished, vintage Potbelly stoves, the sandwiches became a massive hit and over time the shop evolved with the addition of booths, ovens to toast the sandwiches, hand-dipped ice cream, live music, and more.
Today, we have a network of 425 shops nationwide and have continued to adapt and evolve our concept
while keeping community engagement and our legacy of culinary innovation top of mind. This forward thinking approach has translated to category-leading average unit volumes (AUVs) of $1.2M, and the
success of our shops has been driven by diverse menu offerings, effective restaurant designs, and
comprehensive support for our franchisee network. There has never been a more opportune time for franchisees to grow with Potbelly as we are now amidst our most robust development cycle in years. Since the launch of our Franchise Growth Acceleration Initiative in 2022 we have been rapidly expanding across the country, signing multi-unit development agreements with both new and existing franchisees. We are incredibly excited to grow our footprint in Nashville and look forward to partnering with experienced owners and operators in the market.
Can you share a significant lesson you have learned as a business leader?
As a leader of the QSR sandwich segment, we’ve learned how important it is to adapt to the ever-changing needs of today’s consumer. Our guests’ preferences are constantly evolving, and staying attuned to these shifts is crucial. By actively listening to their feedback and keeping an eye on trends, we can update our menu, service methods, and overall experience to better meet their expectations. This proactive approach not only keeps us at the top of a competitive market but also enhances customer satisfaction and loyalty.
An example of this is the continued increased demand for digital convenience across dining experiences.
Due to this preference, we have significantly invested in our tech stack and launched the all-new Potbelly
Perks platform in January. The reimagined loyalty program offers guests new benefits and enhanced
personalization for quicker ordering and more frequent returns to cash in Perks for menu items. Building
upon these value-driven offerings, guests can also enjoy exclusive access to our app-only, “Underground
Menu,” a gateway to hidden menu items reinvented for an exclusive experience made possible through the app. It’s initiatives like these that have bolstered Potbelly’s notoriety amongst the franchise community and make it an intriguing investment opportunity for multi-unit restaurant owners and operators.
What is unique about your business that makes you stand out?
At the center of our success is the powerhouse leadership team we have in place, cultivating a solid
infrastructure with more than 150 years’ combined experience in restaurant franchising across notable
brands like Burger King, Domino’s, Dunkin, and Wendy’s. At the helm is 30-year restaurant industry
veteran, Bob Wright, who previously served as the Executive Vice President and Chief Operations Officer
of The Wendy’s Company where he oversaw operations for over 6,000 company and franchise restaurants
in the U.S. and Canada. Wright was appointed to Chief Executive Officer of Potbelly in 2020 and introduced a five-pillar growth plan which put increased emphasis on franchising.
Franchise focused development is now a top priority for us at Potbelly, and in 2023 Wright hired Lynette
McKee, CFE as Senior Vice President of Franchising to lead the initiative. A true expert in franchising,
McKee held significant franchise development roles at renowned global restaurant brands, including
Dunkin’, Burger King, and Checkers Drive-In Restaurants. This expertise and deep understanding of the restaurant and franchising industries has provided franchisees with legacy industry knowledge as they scale with Potbelly and has positioned the brand to accelerate its expansion across the country.
What’s the biggest goal for your multiple businesses in 2024?
We are actively seeking qualified and experienced multi-unit franchisees to work with us and bring 15
Potbelly shops to the Greater Nashville area. We are confident that Potbelly will resonate strongly in the
area because we capture the city’s unique blend of warmth, creativity, and community spirit. Our cozy
atmosphere and friendly service reflect the welcoming nature of Nashville, while our diverse menu offers
something for everyone, much like the city’s eclectic culinary scene.
What differentiates your business from your competition?
Aside from our strong leadership team, robust loyalty program, and comprehensive franchisee support,
Potbelly stands out amongst other concepts in the sandwich segment due to the flexible shop designs
we’ve built out to meet the needs of any market. This includes inline, endcap, drive-thru and non-traditional formats, and most recently, the brand unveiled its digital-centric prototype that is 500-square-feet smaller than its traditional locations to assist with leasing and construction costs of new builds. The new prototype comes fully equipped with its Potbelly Digital Kitchen – a digitized backline for enhanced online ordering capabilities. Additionally, whether guests order through the app or in-shop, our diverse menu with appealing items and sides help the brand attract and retain loyal customers. We have performed strongly across the lunch and dinner dayparts, delivering an array of limited-time, crave-worthy sandwiches and treats to refresh the menu, generate new news, and drive customer loyalty. Outside of the core menu, our limited time offerings add a variety of flavor combinations for guests to test and enjoy outside of the lunch and dinner rush, like its Chicken Cordon Bleu Sandwich, Cinnamon Churro Milkshake, or its Cherry Delight Cookie. Limited-time offerings such as these have created a sense of urgency and excitement among consumers, allowing franchisees to increase sales, drive repeat business, and better understand their customer base to evolve menu development and enhance marketing strategies.