Potbelly Sandwich Works Marks Breakout Year of Growth as It Prepares for Major 2026 Expansion Surge

Potbelly Sandwich Works Marks Breakout Year of Growth as It Prepares for Major 2026 Expansion Surge

With record average unit volumes, a robust development pipeline and accelerating franchise demand, the brand expects 50 new shops and its 500th opening in 2026

Potbelly Sandwich Works Marks Breakout Year of Growth as It Prepares for Major 2026 Expansion SurgeChicago, IL  (RestaurantNews.comPotbelly Sandwich Works, the iconic neighborhood sandwich shop, is closing out 2025 with exceptional systemwide momentum, powered by accelerated shop development, strong sales performance, and expanding national demand. With 30 new shops planned to open in 2025, and 387 commitments for growth, the brand is entering 2026 with its strongest new shop pipeline in its history.

Potbelly expects to open 50 new shops next year, representing 10%+ systemwide growth across both company and franchise development. This expansion will position the brand to celebrate its 500th shop in 2026, a major milestone in Potbelly’s long-term plan to exceed 2,000 locations nationwide.

Alongside its rapid development progress, Potbelly continued to deliver exceptional sales momentum throughout 2025. The brand drove traffic and revenue on an already strong Average Unit Volumes of $1.3 million and consistent year-over-year sales growth across markets. Further, Potbelly’s investment in technology allowed continued profitability growth. As our Potbelly Perks loyalty base sets new heights, over 40% of orders are now placed digitally and through the Potbelly Perks app. The app creates an easy way for loyal guests to customize their order and earn coins, while the digital orders are processed seamlessly by kitchen teams driving throughput and profitability.

Additional shop performance highlights include:

  • Record-breaking National Sandwich Day, with Perks sales up 50% and double the new loyalty sign-ups versus 2024
  • Catering growth that continues to outperform expectations as one of the brand’s leading revenue drivers
  • Twenty-two shops hitting their highest weekly sales ever
  • Introduction and rapid adoption of Potbelly’s new wraps, now averaging 100 per shop per week, with Portland Airport leading at more than 560 wraps per week

A significant change for Potbelly was the acquisition of the brand by RaceTrac, Inc., (“RaceTrac”) a family-owned, high-growth leader in the convenience store industry, which was completed in October of this year. For generations, Potbelly and RaceTrac have been dedicated to serving great food, offering friendly faces, and creating moments that make people’s days happier and more enjoyable. The acquisition strengthens RaceTrac’s position in the evolving retail landscape, combining both brands’ capabilities in real estate, franchising, operations, food innovation and marketing to drive growth and customer loyalty. Potbelly’s priorities under its new ownership remain unchanged and closely aligned with franchise owners: driving profitable shop growth nationwide and delivering strong, sustainable returns. To that end, current and new franchise owners signed 12 Shop Development Area Agreements (SDAAs) representing 125 new shop commitments for 2025. Additionally, approximately 70% of the brand’s new shop growth is with existing franchise owners.

Potbelly Sandwich Works Marks Breakout Year of Growth as It Prepares for Major 2026 Expansion Surge

As interest from multi-unit operators grows, Potbelly continues to spotlight its Large Area Developer (LAD) incentives, designed to help qualified franchise owners secure exclusive rights across one of the brand’s 1,500+ available trade areas. These incentives, paired with Potbelly’s performance consistency and strong unit economics, have contributed to a robust pipeline heading into the new year.

Leading this next phase of growth is Jennifer Durham, Potbelly’s Senior Vice President of Franchising and Development.

“Potbelly’s momentum is undeniable,” said Durham. “This brand has everything today’s franchise owners want, including an exceptional $1.3 million AUV, a business model that’s proven, scalable and built for long-term success, and a leadership team that’s vested in each shop’s success. Our development pipeline is strong, our franchisee interest is increasing, and I’m energized to lead the next chapter of growth as we expand Potbelly’s presence in key markets nationwide.”

Potbelly’s performance and brand reputation continued to earn national attention throughout the year including:

  • Ranked #336 on Entrepreneur’s Franchise 500
  • Ranked #137 on Franchise Times Top 400
  • Ranked #99 on Nation’s Restaurant News Top 500
  • Named #23 on the Top 100 Fast Casual Movers & Shakers
  • Recognized as one of QSR’s Best Brands to Work For

To close out 2025, Potbelly will host its final franchise webinar, “Behind The Heat: Wrapping Up 2025 and a Look Ahead to 2026.” The session will cover the year’s major milestones, preview 2026 growth plans, and introduce prospective franchise owners to the brand’s development opportunities.

The live webinar is open to all and will take place on December 17 at 4:30 p.m. Eastern Time. Registration is now available at:

https://zoom.us/webinar/register/WN_NjOO2CgqSQSn81P0JKxXEA

As Potbelly moves into 2026 with growing average unit volumes, expanding growth commitments and rising multi-unit interest, the brand remains focused on delivering craveable sandwiches, warm neighborhood hospitality and a high-performing franchise model built for long-term success.

For more information about available franchise opportunities with Potbelly Sandwich Works, please visit franchising.Potbelly.com

Potbelly Sandwich Works Marks Breakout Year of Growth as It Prepares for Major 2026 Expansion Surge

About Potbelly:

Potbelly Corporation is a neighborhood sandwich concept that has been feeding customers’ smiles with warm, toasty sandwiches, signature salads, hand-dipped shakes and other fresh menu items, customized just the way customers want them, for more than 40 years. Potbelly promises Fresh, Fast & Friendly service in an environment that reflects the local neighborhood. Since opening its first shop in Chicago in 1977, Potbelly has expanded to neighborhoods across the country – with more than 450 shops in the United States including more than 100 franchised shops in the United States. For more information, please visit our website at franchising.potbelly.com.

IMPORTANT FRANCHISE DISCLOSURE: The financial performance information presented, including average unit volumes and sales data, represents historical performance and should not be considered as probable results for new franchisees. Individual results may vary. Before investing, any prospective franchise owner must review Potbelly’s Franchise Disclosure Document. This information is not an offer to sell a franchise, which can only be made through delivery of a Franchise Disclosure Document in compliance with applicable laws.

Contact:
Ryann Gutierrez
Blue Engine
Ryann.Gutierrez@theblueengine.com