Sandwich chain Potbelly announced in March 2022 its plan to refranchise 25 percent of existing company-owned units.
Chicago-based Potbelly Sandwich Shop is expanding its presence in the Seattle-Tacoma region through a newly deal signed with franchisee Sound Sandwich.
Sound Sandwich is purchasing nine existing restaurants and developing 13 new units in King, Pierce and Thurston counties over the next eight years. 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 the company is prioritizing expansion through multi-unit developments.
Bob Wright joined Potbelly as CEO in July 2020.
“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.
Related: Potbelly Founder and Former CEO Returning as Franchisee
The company has a long-term goal of reaching 2,000 shops, with at least 85 percent of those locations being franchised. It 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.
Ranked No. 165 on the Franchise Times Top 400, Potbelly grew systemwide sales 10 percent in 2022, to $452 million. Its unit count, meanwhile, dipped 3.2 percent.