Q&A: Potbelly exec talks growth plans as chain plots 50 new stores in 2026
Following its acquisition, Potbelly Sandwich Shop has its sights set on continued expansion.
The fast-casual sandwich chain was acquired by convenience chain RaceTrac Inc. last October in a deal valued at approximately $566 million. Now, Potbelly is looking to continue its growth as it eyes 500 locations nationwide.
To learn more about the brand's expansion plans, including new store prototypes it is testing and markets it plans to expand into, Chain Store Age spoke with Jennifer Durham, Potbelly's senior VP of franchising and development.
How has Potbelly’s brick-and-mortar strategy changed post-acquisition?
Our brick-and-mortar strategy is continuing to underscore high-quality locations, strong trade areas, and experienced franchise partners who can deliver a consistent neighborhood shop experience. At the same time, we are leveraging enhanced real estate insights to make smarter, more strategic decisions market by market.
As with every site opportunity, we are evaluating each site thoughtfully and only moving forward where there is a clear brand and customer fit. Overall, the strategy remains centered on sustainable, long-term performance.
What types of store prototypes is the chain developing? When and where will they be piloted?
Our prototype strategy is all about efficiency and scalability. We have developed an optimized shop layout, typically around 1,800 square feet (and sometimes smaller), that allows us to operate successfully across a wide range of environments while maintaining the warm, neighborhood feel and one-of-a-kind Potbelly experience our guests expect.
Plus, we have opportunities to expand into a variety of non-traditional settings, including colleges and universities, hospitals, corporate campuses, and even military bases. We have also seen strong performance in other non-traditional environments like medical research centers and large employment hubs.
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Each new opening gives us more insight into how the model performs in different environments, and we believe that this work is never done. We continue to optimize the design based on our new shop opening learnings.
How many stores does Potbelly plan on opening this year? Is there a long-term store count goal?
We plan to open 50 new shops in 2026, which reflects a significant acceleration in our growth trajectory. To put that into context, our new shop openings increased to 31 openings in 2025, from 23 openings in 2024. By year’s end, Potbelly will open its 500th shop just ahead of Potbelly’s 50th anniversary.
A key driver of that growth is our franchising initiative. With 350 franchise commitments, Potbelly’s growth momentum is continuing into 2026 as we expand with experienced operators in both new and existing markets. While we are a legacy brand, we have a clear runway to 2,000 shops, especially as we continue to grow in high-potential regions and deepen our presence in markets where the brand is already resonating.
What types of markets and retail properties is Potbelly looking to expand into?
We are continuing to expand across a diverse mix of markets, with ample opportunity in premium markets throughout the Southwest, Southeast and parts of the Midwest. Today, Potbelly operates in 30 states plus Washington D.C., with plenty of room to grow, which speaks to the flexibility of our model.
From a real estate standpoint, we are highly adaptable. We are actively pursuing traditional inline and endcap locations, as well as opportunities in mixed-use developments, lifestyle centers and high-traffic retail corridors. At the same time, our prototype allows us to succeed in a wide variety of non-traditional environments.
Ultimately, we are looking for locations where we can become the favorite sandwich shop in the neighborhood. Whether that is a neighborhood shopping center or a large employment hub, our goal is to meet guests where they are and deliver a consistent, high-quality experience.
How is technology playing a role in store design and prototyping?
Technology is a critical part of how we are designing our shops today. A significant portion of our business, over 40%, now comes through digital channels, and technology has become part of the Potbelly experience.
We are building shops with dedicated pickup areas, more efficient kitchen layouts, and integrated systems that improve speed, accuracy, and the overall guest experience. Tools like Flybuy help us better manage off-premise orders, while our continued investments in POS and reporting systems give operators more visibility and control.
Technology also enables us to design smarter, more streamlined shops that reduce complexity for our teams while improving consistency for our guests. It is about creating an experience that works just as well digitally as it does in person.
