Chicago-based Potbelly Sandwich Shop is expanding its presence in the Seattle-Tacoma region with a newly deal signed with local franchisee group Sound Sandwich.
The agreement includes Sound Sandwich taking ownership of nine existing restaurants and developing 13 new units in King, Pierce and Thurston counties over the next eight years—increasing the number of shops in the area to 22.
Potbelly’s current Washington locations include Bellevue, Bothell, Issaquah, Redmond, Renton and Seattle.
“Sound Sandwich LLC is led by experienced franchisee partners, with deep knowledge and expertise owning, operating and developing a portfolio of multi-unit, interstate operations, including hotels, travel centers and restaurants,” the company said in a press release. “Their business model is centered around singular brand focus, people-centric operations and growth informed by actionable data.”
Representatives for Sound Sandwich did not immediately respond to request for comment.
Potbelly CEO Bob Wright recently told Franchise Times that the company is prioritizing expansion through multi-unit developments.
Bob Wright, Potbelly CEO
“We have the desire to develop through multi-unit development agreements with qualified franchisees that have the experience, capabilities and talent to develop in markets where we have this under-penetration,” Wright said. “We’ve also said we’d be willing to sell some company units to catalyze that growth, especially if they’re also in under-penetrated markets.”
In June, Wright said that Potbelly was changing its growth strategy as the sandwich chain looks to expand via franchising after a focus for many years on developing company locations.
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The company has a long-term goal of reaching 2,000 shops, with at least 85 percent of those locations being franchised. It currently has about 425 shops open in the U.S., including about 75 franchised locations, or just under 18 percent of total open restaurants.
Earlier this month, Potbelly completed a 40-unit agreement with Royal Restaurant Group, a national franchise group that owns 24 Burger King restaurants in the Jacksonville, Florida, area. The deal involves the development of 36 Potbelly shops in Ohio and Florida, as well as the refranchising of four locations in the Columbus, Ohio, region.
“We are excited about the great potential this agreement offers us, and we look forward to working closely with such a fantastic partner to continue our growth momentum in Washington state,” Lynette McKee, Senior Vice President of Franchising at Potbelly, said in a statement.