Potbelly Sandwich Shop
| Company type | Public |
|---|---|
| Industry | Fast casual dining |
| Founded | 1977 in Chicago, Illinois, United States |
| Founder | Bryant Keil |
| Headquarters | Chicago , United States |
Area served | United States |
Key people | Robert Wright (CEO), Bryant Keil (Chairman and Founder) |
| Products | Submarine sandwiches, milkshakes, soups, smoothies, chips, cookies |
Number of employees | 5,500 (2024) |
| Website | www |
Potbelly Corporation, operating under the names Potbelly Sandwich Shop and Potbelly Sandwich Works, is a publicly listed American fast-casual dining chain that specializes in submarine sandwiches and milkshakes. Established in 1977 in Chicago by Bryant Keil, the company’s concept revolves around a varied menu featuring hot sandwiches, soups, shakes, smoothies, chips, and cookies. The corporate headquarters are situated at The Gogo Building, 111 N. Canal Street, Chicago.
As of March 2024, Potbelly manages 427 outlets throughout the United States, focusing on the fast-casual market segment with an emphasis on quality and customer satisfaction. For the fiscal year ending September 2023, the company reported revenues totaling US$485.1 million. Despite revenue growth, Potbelly recorded an operating loss with an operating income of -US$22.49 million and a net loss of -US$23.78 million as of December 2021. The workforce consists of roughly 5,500 employees.
Leadership includes CEO Robert Wright alongside founder Bryant Keil, who remains chairman. The company’s strategic direction prioritizes expanding its market presence through product innovation and service enhancements while sustaining its competitive position within the fast-casual sector. Historically, some locations featured live music to foster community engagement and enhance the customer experience.
Potbelly’s organizational framework supports its operations across the U.S., concentrating on sustainable expansion through focused investments and improved operational efficiency.
History
In 1971, Peter Hastings opened an antique shop called Hindsight in Chicago’s Lincoln Park area. An old potbelly stove in the store was used by Hastings to prepare toasted sandwiches for patrons. By 1977, this establishment evolved into Potbelly Sandwich Works. Since its inception, Potbelly has partnered with Chicago-based Turano Bakery for its bread supply.
Bryant Keil purchased the original store in 1996 and led its growth by launching a second location in 1997. Under his guidance, Potbelly expanded to over 300 outlets across several states and Washington D.C. Prominent investors include Maveron—co-founded by Starbucks’ Howard Schultz—and American Securities. By August 2019, franchise operators managed approximately 10% of more than 450 stores.
On November 5, 2007, Potbelly opened its inaugural drive-thru outlet in Glen Ellyn, Illinois, followed by another in Waukegan. The brand ventured internationally with franchise openings in Dubai starting in 2011.
In August 2013, Potbelly filed for an initial public offering (IPO) aiming to raise up to $75 million. Trading commenced on NASDAQ in October 2013, with a market valuation near $650 million soon after.
The company entered the European market with a London location at Westfield Stratford City in July 2015 and launched its first Canadian store in Toronto by October 2016. By August 2017, lunch sales represented 60% of Potbelly’s revenue across its portfolio of 424 company-owned and 54 franchised stores. During that period, the company explored potential sale opportunities.
December 2017 marked Potbelly’s entry into India through a multi-unit franchise agreement with Kwals Group in Gurgaon, aiming for five outlets by year-end 2018 and expanding to twenty within five years.
Potbelly features Zapp's potato chips on its menu and formerly offered an exclusive Zapp's Dill Pickle flavor aligned with its brand identity.
In July 2020, Robert Wright—previously with Wendy’s—was appointed President and CEO to lead strategic initiatives.
April 2022 saw Potbelly form its first delivery-oriented franchise partnership with REEF, a major North American operator of virtual kitchens and logistics hubs.
The COVID-19 pandemic resulted in nearly a 30% drop in revenue and forced closure of 28 locations; however, growth recommenced with announcements of 19 new stores in 2022 and reaching a total of 40 openings by October 2023.
In 2023, Potbelly secured a major deal to establish 22 new restaurants within the Seattle-Tacoma area.
January 2024 introduced an upgraded Potbelly Perks loyalty program designed to provide customers with enhanced rewards and benefits.
Controversies
Amid the COVID-19 pandemic, Potbelly Sandwich Shop received $10 million through the PPP (Paycheck Protection Program), intended to aid small businesses in preserving employee wages. After facing public criticism, the company declared on April 25, 2020, its decision to repay the funds.
In 2024, Potbelly allocated close to $100,000 to counter unionization attempts at its downtown Portland outlet.
See also
External links
- Short description with empty Wikidata description
- 1977 establishments in Illinois
- 2013 initial public offerings
- American companies established in 1977
- Companies based in Chicago
- Companies listed on the Nasdaq
- Fast-food chains of the United States
- Fast-food franchises
- Fast casual restaurants
- Regional restaurant chains in the United States
- Restaurants established in 1977
- Restaurants in Chicago
- Submarine sandwich restaurants
- Companies of the United States by year of establishment