Potbelly Sandwich Works to Expand in New York City Via Franchising
BISWIRE/Nov. 11, 2024 — Since opening its first shop in Chicago in 1977, Potbelly Sandwich Works has established itself as the neighborhood sandwich shop serving guests with warm, toasty sandwiches, signature salads, hand-dipped shakes, and other fresh menu items. Following the launch of its Franchise Growth Acceleration Initiative, Potbelly has now grown to more than 430 locations nationwide and is ready for further expansion across New York City’s five boroughs and nearby markets through franchising.
Why New York City?
New York City and its surrounding markets is ripe with fast casual opportunity and Potbelly has already established a presence with restaurants throughout Manhattan. With locations ranging from the Flatiron District to Midtown to NoHo, Potbelly has built brand awareness in the market and sees opportunities for interested owner operators to jump on board. The brand’s highly differentiated menu and store operations are ideal for local residents, the workforce or students, which can increase sales for each franchise owner.
Currently leading expansion across New York City is United One Group. As part of the signed franchise agreement, United One Group acquired eight Potbelly restaurants in New York City and has committed to developing 13 new locations throughout the city. Their first new build location opened in NoHo in September, with additional openings in Midtown and the Financial District coming soon.
“Our team has spent decades developing and operating fast casual and QSR brands throughout NYC, so we understand the industry and market complexities,” said Paramjit Josan, CEO of United One Group. “Potbelly is an ideal investment opportunity for us and we’re eager to open new locations. The brand’s commitment to menu and real estate innovation, as well as its unique restaurant atmosphere makes it a lucrative opportunity.”
As United One Group’s investment shows, New York City’s fast-paced environment is optimal for brands like Potbelly and there is immense development opportunity throughout the market.
Supporting Franchisees Through Innovation and Flexibility
While Potbelly has established itself as one of the leading fast casual franchises across the country, the brand’s innovation does not stop.
For example, Potbelly has developed an LTO program that authentically connects strong lunch, dinner and snack dayparts, allowing its crave-worthy flavors to refresh its menu and drive franchisee revenue.
This evolution has helped Potbelly supercharge expansion, maintaining a category-leading $1.3M AUV* and driving same-store sales growth.
In addition to its strong sales performance, the brand has recently launched a digital-focused prototype that features flexible formats, allowing franchisees to scale operations effectively in smaller spaces. This design not only enhances operational efficiency but also reduces construction and leasing costs, leading to significant savings for franchisees. Potbelly’s newer locations are now 1,800 square feet.
Smaller restaurants are ideal for meeting today’s guests where and how they want to be met and are perfect for New York City’s competitive real estate market. Digital sales have also risen to more than 40% of sales in Q2 2024, reducing the need for larger locations and enhancing franchisees’ bottom line.
Additionally, Potbelly franchisees across the country have recently expanded their development commitments, showcasing confidence and enthusiasm for the brand. This reflects the support Potbelly provides its franchisees, enhancing the appeal of developing in New York City.
Grow With Potbelly in New York City
With passionate guests, a warm, welcoming vibe and growing demand, Potbelly is perfectly positioned to drive franchisee success throughout the Big Apple. The brand is seeking new owner operators to join and help fuel its growth.
Potbelly prides itself on fostering strong partnerships with its franchisees and optimizing locations to drive unit-level economics. The brand envisions becoming the most iconic neighborhood sandwich shop in the U.S.
Don’t wait! HOT Opportunities are still available across New York City! Candidates interested in franchising with Potbelly can complete this form to get started now.
*See FDD for full range of sales performance
