 | |
| Company type | Subsidiary |
|---|---|
| Industry | Fast casual |
| Founded | January 14, 1977; 49 years ago (1977-01-14) |
| Founder | Bryant Keil |
| Headquarters | The Gogo Building, 111 N. Canal Street, Chicago, Illinois, U.S. |
Number of locations | Over 400 |
Area served | United States |
Key people | Robert Wright (president &CEO) Bryant Keil (foundingchairman) |
| Products | Sandwiches,salads,soups,ice cream |
| Revenue | 409,707,000 United States dollar (2019)  |
| Owner | RaceTrac |
| Website | potbelly |
Potbelly Sandwich Shop, also known asPotbelly Sandwich Works, is an American fast-casualrestaurant chain with over 400 locations that focuses onsubmarine sandwiches andmilkshakes. It is owned byRaceTrac.
Potbelly was founded in 1977 inChicago, and its name refers to thepotbelly stove. Potbelly offers sandwiches, many served hot, and soup, shakes,smoothies, potato chips, and cookies. Some locations formerly presented live music from local musicians during the lunch hours.[1]
Potbelly carriesZapp's potato chips and previously had an exclusive Zapp's brand of dill pickle chips that had the flavor of a Potbelly pickle.[2]
In 1971, Peter Hastings started anantique store, Hindsight, at 2264 North Lincoln Avenue in theLincoln Park neighborhood of Chicago. The store had an oldpotbelly stove, which Hastings began using to make toasted sandwiches to serve to shoppers. In 1977, the Hindsight store was retooled into a restaurant, Potbelly Sandwich Works.[3]
Since 1977, Potbelly has partnered with Turano in Chicago for bread products.[4]
In 1996, Bryant Keil purchased the original store and converted it into a full-scale restaurant.[1] The second Potbelly store opened in 1997, and he expanded Potbelly to over 250 stores in several states and theDistrict of Columbia by 2008.[5]
In 2001,Maveron, founded by formerStarbucks chairman and executiveHoward Schultz andDan Levitan, invested in the company and became its largest shareholder. It sold most of its stake by 2016.[6]
In November 2007, a new Potbelly store inGlen Ellyn, Illinois became the first to feature adrive-through. A second drive-through store was added shortly thereafter inWaukegan, Illinois.[7]
In February 2011, Potbelly opened two franchise stores inDubai in theUnited Arab Emirates owned byAlshaya Group, the first international Potbelly locations.[8][9]
In October 2013, Potbelly became apublic company via aninitial public offering. The stock closed up 120% on its first day of trading.[10] At that time, its largest shareholders wereMaveron with a 28% stake, ASP PSW LLC, managed byAmerican Securities with 12.9%, andOak Investment Partners with 12.2%.[11]
Potbelly opened its first European store atWestfield Stratford City,London, in July 2015.[12] It opened its first Canadian store in Toronto in October 2016.[13]
By August 2017, 60% of Potbelly's business came from lunch. It had 424 owned stores and 54 franchised stores.[14]
In December 2017, Potbelly opened its first franchise inIndia with a location inCyber City,Gurgaon, operated by Kwals Group.[15][16]
Decreased sales caused by theCOVID-19 pandemic resulted in nearly 30% loss in annual revenue and 28 store closures.[17]
During theCOVID-19 pandemic, Potbelly applied for and accepted $10 million under thePaycheck Protection Program.[18] Even though it qualified for the loan, some people criticized the loan as Potbelly was not a small business; it returned the loan in April 2020 after outrage.[19]
In July 2020, Potbelly named Robert Wright, a former executive ofWendy's, its President and CEO.[20]
In April 2022, Potbelly entered its first delivery-based franchise partnership with REEF, the largest operator of virtual restaurants, logistics, and proximity hubs in North America.[21]
In May 2023, a Potbelly in downtown Portland paid almost $100,000 to hire consulting firm Optimal Employee Relations to reduce efforts of employees to form alabor union. It allegedly fired three workers who led the union campaign.[22]
By the fourth quarter of 2023, 41% of sales came from digital channels.[23]
In January 2024, the firm unveiled a redesigned Potbelly Perks loyalty program with new benefits. At that time it had 425 restaurants, including 80 franchises.[24][25][26]
In March 2025, Potbelly announced an incentive program for franchisees including reduced fees for operators that open at least 15 units in eight years.[27]
In October 2025, Potbelly was acquired byRaceTrac for $566 million.[28][29]
