Fast-casual sandwich brand Potbelly has already made an effort to keep up with recent restaurant trends, launching their digital kitchen for new locations.
Now Potbelly is taking the next step in that endeavor, rolling out an 1,800 square-foot prototype unit, 500 square feet smaller than the brand’s traditional buildings. Each new unit will come with the brand’s digital kitchen platform, which has a system able to sort orders better and utilize the restaurant’s second make-line for better employee coordination and efficiency.
“The design has been in development for a couple of years,” said Lynette McKee, Potbelly senior vice president of franchising. “Coming out of the pandemic, we realized that the customers don’t come in as much for sit-down dining as they used to. When we looked at the overall footprint, we realized we could take a little off the dining room area.”
Potbelly Senior Vice President of Franchising Lynette McKee
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In the past, McKee said Potbelly’s criteria was for buildings to be on the larger side, with a traditional 2,300 square-foot site. However, when CEO Bob Wright took over in 2020, brand leadership looked at ways to help grow with franchising, and one of the ideas was to increase brick-and-mortar flexibility.
“So many of our shops that are opening now are conversions, with many of them in-line or end-cap locations,” Wright said. “Occasionally we find free-standing buildings, but most of the time it’s an established center. To make sure the franchisees have the ability to open where the demographics work and the real estate is great, we do everything we can to add flexibility.”
The flexibility in square footage and build-out of the digital kitchens coincides with the brand’s increase in online sales. Previously used mainly for catering, the second make-lines now focus on digital orders, whether they’re for takeout or delivery. In addition to the technology to help staff run the line, the kitchens have designated pick-up shelves.
Potbelly has 428 locations open with 84 of them franchised and the remaining 344 company-owned. The initial investment to open a location ranges from $643,500 to $1.15 million.
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The digital kitchen is what sold Cody McPherson on becoming a Potbelly franchisee. An operator based in Arkansas, McPherson partnered with Potbelly in 2023, after establishing himself as a franchisee with Crumbl two years earlier. Impressed with the food and the menu, McPherson visited Chicago for a Potbelly discovery day and was sold on the concept.
Potbelly franchisee Cody McPherson
“I learned about the digital system that Potbelly was developing and bringing into their shops,” McPherson said. “They had also restructured their app with their points system that customers can get, making it easy to operate and use. I really liked that digital side of their business.”
McPherson opened his first unit in May, and it’s on the larger side at about 3,000 square feet. He’s signed on to open 11 more and is grateful for the new prototype option for future growth.
“The prototype is catered to where you’re developing,” McPherson said. “It’s dependent on the buildings. With this prototype, we can do an end-cap or a center-line. It gives us that flexibility.”
While there are changes happening at Potbelly to accommodate a more digital age, McKee said the brand is staying traditional in other areas, such as not committing to drive-thrus.
“We do have a few drive-thrus, as some of our franchisees are developing or have developed and are open with them,” McKee said. “If it’s the right situation and the right demographic area, and a location is available, we’re open to the franchisee doing that, but it’s not a focus for us.”