{{Short description|American fast-casual restaurant chain}} {{Use American English|date=January 2026}} {{Use mdy dates|date=January 2026}} {{Infobox company | name = Potbelly Corporation | logo = Potbelly Sandwich Shop logo.svg | type = [[Subsidiary]] | foundation = {{start date and age|1977|1|14}} | location_city = [[Chicago, Illinois]], U.S. | location = [[The Gogo Building]], 111 N. Canal Street | locations = Over 400 | founder = Bryant Keil | key_people = Robert Wright ([[President (corporate title)|president]] & [[Chief executive officer|CEO]]) <br /> Bryant Keil (founding [[chairman]]) | industry = [[Fast casual]] | products = [[Sandwiches]], [[salads]], [[soups]], [[ice cream]] | area_served = [[United States]] | owner = [[RaceTrac]] | homepage = {{URL|https://potbelly.com/}} }} [[File:11-16-06-EPMN-potbelly.jpg|thumb|200px|right|A location in [[Eden Prairie, Minnesota]]]]
'''Potbelly Sandwich Shop''', also known as '''Potbelly Sandwich Works''', is an American fast-casual [[restaurant chain]] with over 400 locations that focuses on [[submarine sandwich]]es and [[milkshake]]s. It is owned by [[RaceTrac]].
Potbelly was founded in 1977 in [[Chicago]], and its name refers to the [[potbelly stove]]. Potbelly offers sandwiches, many served hot, and soup, shakes, [[smoothie]]s, potato chips, and cookies. Some locations formerly presented live music from local musicians during the lunch hours.<ref name=6things>{{cite web | title=6 Things You Didn't Know About Potbelly Sandwich Works | work=The Daily Meal | url=https://www.thedailymeal.com/6-things-you-didn-t-know-about-potbelly-sandwich-works | date=September 5, 2014}}</ref>
Potbelly carries [[Zapp's]] potato chips and previously had an exclusive Zapp's brand of dill pickle chips that had the flavor of a Potbelly pickle.<ref>{{cite press release |url=https://www.restaurantnews.com/potbelly-sandwich-shop-introduces-new-cuban-sandwich-for-a-limited-time-050918/ |title=Potbelly Sandwich Shop Introduces New Cuban Sandwich For A Limited Time | via=Restaurant News |date=May 9, 2018}}</ref>
==History== [[File:The Very First Potbelly.JPG|thumb|260px|right|The first Potbelly restaurant, in [[Lincoln Park, Chicago]]]] [[File:Seating area in the very first Potbellys Restaurant.jpg|thumb|right|170px|A view inside the first Potbelly Restaurant seating area]] In 1971, Peter Hastings started an [[antique store]], Hindsight, at 2264 North Lincoln Avenue in the [[Lincoln Park, Chicago|Lincoln Park]] neighborhood of Chicago. The store had an old [[potbelly 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.<ref>{{Cite news | url=https://www.mashed.com/380221/the-untold-truth-of-potbelly/ | title=The Untold Truth of Potbelly | first=Sara | last=Cagle | work=[[Static Media|Mashed]] | date=August 18, 2023}}</ref>
Since 1977, Potbelly has partnered with Turano in Chicago for bread products.<ref>{{Cite web |title=Potbelly sandwich chain builds upon its bread |url=https://www.snackandbakery.com/articles/111591-potbelly-sandwich-chain-builds-upon-its-bread | first=Jenni | last=Spinner | work=Snack Food & Wholesale Bakery | date=June 28, 2024}}</ref>
In 1996, Bryant Keil purchased the original store and converted it into a full-scale restaurant.<ref name=6things/> The second Potbelly store opened in 1997, and he expanded Potbelly to over 250 stores in several states and the [[District of Columbia]] by 2008.<ref>{{Cite news | url=https://www.restaurantbusinessonline.com/operations/potbelly-founder-build-shops-maryland-franchisee | title=Potbelly founder to build shops in Maryland as franchisee | first=Lisa | last=Jennings | work=Restaurant Business | date=July 19, 2023}}</ref>
In 2001, [[Maveron]], founded by former [[Starbucks]] chairman and executive [[Howard Schultz]] and [[Dan Levitan]], invested in the company and became its largest shareholder. It sold most of its stake by 2016.<ref>{{Cite news | url=https://www.nrn.com/restaurant-finance/maveron-sharply-reduces-its-potbelly-stake | title=Maveron sharply reduces its Potbelly stake | first=Jonathan | last=Maze | work=[[Nation's Restaurant News]] | date=February 26, 2016}}</ref>
In November 2007, a new Potbelly store in [[Glen Ellyn, Illinois]] became the first to feature a [[drive-through]]. A second drive-through store was added shortly thereafter in [[Waukegan, Illinois]].<ref>{{cite web | url=https://www.bonoconsulting.com/projects/potbelly-sandwich-works-restaurant-drive-through-glen-ellyn/ | title=Potbelly Sandwich Shop Restaurant Drive-Through – Glen Ellyn, IL | work=Sevee & Maher Engineers}}</ref>
In February 2011, Potbelly opened two franchise stores in [[Dubai]] in the [[United Arab Emirates]] owned by [[Alshaya Group]], the first international Potbelly locations.<ref>{{cite news | url=https://www.arabianbusiness.com/industries/retail/kuwait-s-alshaya-opens-debut-chicago-s-potbelly-sandwich-shop-outlets-383485 | title=Kuwait’s Alshaya opens debut Chicago’s Potbelly Sandwich Shop outlets | first=Shane | last=McGinley | work=[[Arabian Business]] | date=February 27, 2011}}</ref><ref>{{Cite press release | url=https://www.alshaya.com/en/media-centre/alshaya-news/potbelly-chicago-s-favorite-sandwich-shop-comes-to-dubai/ | title=Potbelly - Chicago's favorite sandwich shop comes to Dubai | publisher=[[Alshaya Group]] | date=February 27, 2011}}</ref>
In October 2013, Potbelly became a [[public company]] via an [[initial public offering]]. The stock closed up 120% on its first day of trading.<ref>{{Cite news | url=https://www.cnbc.com/2013/10/04/potbelly-ipo-has-bigger-than-expected-demand.html | title=Buyers gobble up Potbelly’s IPO | work=[[CNBC]] | date=October 4, 2013}}</ref> At that time, its largest shareholders were [[Maveron]] with a 28% stake, ASP PSW LLC, managed by [[American Securities]] with 12.9%, and [[Oak Investment Partners]] with 12.2%.<ref>{{Cite news | url=https://www.reuters.com/article/business/sandwich-maker-potbelly-files-for-ipo-of-up-to-75-million-idUSBRE97S17G/ | title=Sandwich maker Potbelly files for IPO of up to $75 million | first=Avik | last=Das | editor-first=Don | editor-last=Sebastian | work=[[Reuters]] | date=August 29, 2013}}</ref>
Potbelly opened its first European store at [[Westfield Stratford City]], [[London]], in July 2015.<ref>{{cite news | title=Stratford to welcome first Potbelly in Europe | url=http://www.newhamrecorder.co.uk/news/stratford_to_welcome_first_potbelly_in_europe_1_4084482 | first=Sebastian |last=Murphy-Bates | work=[[Newham Recorder]] | date=May 23, 2015}}</ref> It opened its first Canadian store in Toronto in October 2016.<ref>{{cite news | url=https://www.bisnow.com/toronto/news/retail/chicagos-potbelly-sandwich-shop-opens-toronto-flagship-66666 | title=Chicago’s Potbelly Sandwich Shop Opens Toronto Flagship | first=Ryan | last=Starr | work=[[Bisnow Media]] | date=October 20, 2016}}</ref>
By August 2017, 60% of Potbelly's business came from lunch. It had 424 owned stores and 54 franchised stores.<ref>{{cite news |last1=Jargon |first1=Julie |last2=Hufford |first2=Austen |title=Sandwich Maker Potbelly Hangs 'For Sale' Sign |url=https://www.wsj.com/articles/sandwich-maker-potbelly-hangs-for-sale-sign-1501860390 | work=[[The Wall Street Journal]] |location=[[New York City]] |date=August 4, 2017 | url-access=subscription}}</ref>
In December 2017, Potbelly opened its first franchise in [[India]] with a location in [[Cyber City, Gurgaon|Cyber City]], [[Gurgaon]], operated by Kwals Group.<ref>{{cite news |url=https://www.bwhotelier.com/article/first-potbelly-sandwich-shop-opens-in-india-135209 |title=First Potbelly Sandwich Shop Opens in India | first=Sai | last=Archana | work=BW Hotelier | date=December 20, 2017}}</ref><ref>{{Cite news | url=https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/potbelly-corp-kwals-group-partner-to-open-20-outlets-by-2022/62144153 | title=Potbelly Corp, Kwal's Group partner to open 20 outlets by 2022 | agency=[[Press Trust of India]] | work=[[The Economic Times]] | date=December 20, 2017}}</ref>
Decreased sales caused by the [[COVID-19 pandemic]] resulted in nearly 30% loss in annual revenue and 28 store closures.<ref>{{Cite news |url=https://www.qsrmagazine.com/reports/inside-potbellys-comeback-potential-powerhouse/ |title=Inside Potbelly's Comeback, from Potential to Powerhouse | first=Danny | last=Klein | work=QSR |date=April 27, 2022}}</ref>
During the [[COVID-19 pandemic]], Potbelly applied for and accepted $10 million under the [[Paycheck Protection Program]].<ref>{{cite news |url=https://www.oregonlive.com/business/2020/04/chains-like-ruths-chris-potbellys-got-loans-under-small-business-relief-program-what-happened.html |title=Chains like Ruth’s Chris, Potbelly got loans under small-business relief program; what happened? | work=[[The Oregonian]] | agency=[[Associated Press]] |date=April 20, 2020}}</ref> 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.<ref>{{cite news | url=https://www.cnbc.com/2020/04/25/potbelly-to-return-10-million-ppp-loan-after-outrage.html |last1=Miller | first1=Hannah | title=Potbelly says it will return $10 million small business loan, following others after outrage | work=[[CNBC]] | date=April 25, 2020}}</ref>
In July 2020, Potbelly named Robert Wright, a former executive of [[Wendy's]], its President and CEO.<ref>{{Cite news |url=https://restaurantbusinessonline.com/leadership/potbelly-names-former-wendys-exec-robert-wright-president-ceo |title=Potbelly names former Wendy's exec Robert Wright as president and CEO |first=Heather |last=Lalley | work=Restaurant Business |date=July 20, 2020}}</ref>
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.<ref>{{Cite press release |url=https://www.nrn.com/fast-casual/potbelly-initiates-virtual-restaurant-partnership-with-reef |title=Potbelly initiates virtual restaurant partnership with Reef | via=[[Nation's Restaurant News]] |date=April 27, 2022}}</ref>
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 a [[labor union]]. It allegedly fired three workers who led the union campaign.<ref>{{Cite news |url=https://nwlaborpress.org/2024/04/potbelly-sandwich-spent-100k-to-fight-union/ |last=Gruben |first=Mallory |title=Potbelly Sandwich spent $100k to fight union |work=[[Northwest Labor Press]] |date=April 3, 2024}}</ref>
By the fourth quarter of 2023, 41% of sales came from digital channels.<ref>{{Cite news | url=https://www.nrn.com/restaurant-technology/why-potbelly-thinks-that-digital-sales-not-discounting-is-the-best-solution-for-long-term-traffic-gains | title=Why Potbelly thinks that digital sales — not discounting — is the best solution for long-term traffic gains | first=Joanna | last=Fantozzi | work=[[Nation's Restaurant News]] | date=May 9, 2024}}</ref>
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.<ref>{{Cite news | url=https://www.restaurantdive.com/news/potbelly-expands-loyalty-redemption-adds-spending-tiers/705300/ | title=Potbelly expands loyalty redemption options | first=Aneurin | last=Canham-Clyne | work=[[Industry Dive]] | date=January 23, 2024}}</ref><ref>{{Cite news | url=https://www.nrn.com/restaurant-loyalty/potbelly-modifies-its-perks-loyalty-program | title=Potbelly modifies its Perks loyalty program | first=Ron | last=Ruggless | work=[[Nation's Restaurant News]] | date=March 8, 2024}}</ref><ref>{{Cite press release | url=https://www.prnewswire.com/news-releases/potbelly-launches-reimagined-potbelly-perks-loyalty-program-302040837.html | title=Potbelly Launches Reimagined Potbelly Perks Loyalty Program | publisher=[[PR Newswire]] | date=January 22, 2024}}</ref>
In March 2025, Potbelly announced an incentive program for franchisees including reduced fees for operators that open at least 15 units in eight years.<ref>{{Cite news | url=https://www.franchisetimes.com/franchise_news/potbelly-s-newly-launched-incentive-program-appeals-to-multi-unit-franchisees/article_bd6999b0-0e99-482e-b329-f250d8997e0b.html | title=Potbelly’s Newly Launched Incentive Program Appeals to Multi-Unit Franchisees | first=Alyssa | last=Huglen | work=[[Franchise Times]] | date=May 23, 2025}}</ref>
In October 2025, Potbelly was acquired by [[RaceTrac]] for $566 million.<ref>{{Cite news |url=https://www.cnbc.com/2025/09/10/potbelly-acquired-racetrac-566-million.html |title=Potbelly acquired by convenience store operator RaceTrac for $566 million |last=Neelakandan |first=Laya | work=[[CNBC]] |date=September 10, 2025}}</ref><ref>{{Cite news |url=https://www.restaurantbusinessonline.com/racetrac-completes-566m-acquisition-potbelly | title=RaceTrac completes $566M acquisition of Potbelly | first=Lisa | last=Jennings | work=Restaurant Business | date=October 23, 2025}}</ref>
==See also== {{Commons category|Potbelly Sandwich Works}} * [[List of submarine sandwich restaurants]]
== References == {{Reflist}}
== External links == * {{Official website|https://potbelly.com/}}
{{Portalbar|Chicago|Companies|Food}} {{Fast-food chains of the United States}} [[Category:1977 establishments in Illinois]] [[Category:2013 initial public offerings]] [[Category:2025 mergers and acquisitions]] [[Category:American companies established in 1977]] [[Category:Companies based in Chicago]] [[Category:Companies formerly listed on the Nasdaq]] [[Category:Fast casual restaurants]] [[Category:Fast-food chains of the United States]] [[Category:Fast-food franchises]] [[Category:Regional restaurant chains in the United States]] [[Category:Restaurants established in 1977]] [[Category:Restaurants in Chicago]] [[Category:Submarine sandwich restaurants]]