ATLANTA — Potbelly Sandwich Shop, the Chicago-born brand known for its toasted sandwiches and eclectic neighborhood atmosphere, has officially planted its flag in the "Peach State." The opening of its first company-owned unit in Georgia marks a pivotal milestone in a multi-year transformation that has seen the brand transition from a regional favorite to a national powerhouse under the ownership of convenience store giant RaceTrac.

As the company nears the 500-unit threshold this year, the Georgia expansion serves as more than just a new market entry; it is a proof-of-concept for the brand’s "Potbelly 2.0" growth strategy. Following its $655 million acquisition by RaceTrac in 2025, Potbelly is leveraging a dual-track growth model that combines traditional suburban storefronts with innovative, non-traditional placements within the convenience store ecosystem.

Main Facts: A New Chapter in the Peach State

The recent opening in Georgia represents the first of many planned locations in the Southeast, a region where Potbelly has historically had a limited footprint. This specific unit is company-owned, a strategic choice that allows the brand to establish a high-standard operational "north star" in the new market before scaling further through franchise partners.

Key highlights of the current expansion include:

• Market Entry: The first company-owned shop in Georgia is now operational, with a flagship location inside a RaceTrac convenience store in Atlanta slated to open shortly.
• Acquisition Context: The brand is operating in its first full year under the ownership of RaceTrac, which purchased the chain for $655 million to bolster its food-service offerings.
• Growth Targets: Potbelly is on track to exceed 500 total units by the end of 2026, with a long-term roadmap targeting 2,000 locations across North America.
• Development Pipeline: The company has projected the opening of 55 franchised and three company-owned units for the 2026 calendar year.

Chronology: From Neighborhood Shop to National Contender

To understand Potbelly’s current trajectory, one must look at the seismic shifts the company has undergone over the last five years.

2021–2023: The Refranchising Foundation
Prior to the RaceTrac acquisition, Potbelly embarked on a "Franchise Growth Acceleration" initiative. In 2023, the company operated 384 company-owned units but had only 45 franchised locations. Recognizing that a capital-light model was essential for rapid scaling, leadership began refranchising existing company-owned shops to proven multi-unit operators.

2024: The RaceTrac Acquisition
The turning point came in late 2024 (finalized in early 2025) when RaceTrac, an Atlanta-based convenience store leader, announced the $655 million acquisition of Potbelly. The move was seen as a bold play to capture the "quality-seeking" lunch crowd and integrate premium fast-casual dining into the high-traffic C-store environment.

2025: The Year of Transition
By 2025, the results of the refranchising effort were evident. The franchised store count nearly tripled, jumping from 45 to 122 units, while the company-owned count was intentionally reduced to 348. This shift allowed Potbelly to shore up its balance sheet and focus corporate resources on brand innovation and supply chain logistics.

2026: The Georgia Launch and Beyond
The September 2026 entry into Georgia represents the culmination of this integration. By establishing a presence in RaceTrac’s home state, Potbelly is signaling a symbiotic relationship where the sandwich brand benefits from RaceTrac’s real estate expertise in the South, and RaceTrac benefits from Potbelly’s high Average Unit Volumes (AUV).

Supporting Data: The Economics of Toasted Sandwiches

The financial health of the Potbelly brand has remained robust despite the logistical complexities of a corporate takeover and a shifting business model. According to the company’s latest Franchise Disclosure Document (FDD), the brand’s economic fundamentals are a primary driver for new franchise interest.

Average Unit Volume (AUV) and Profitability

Potbelly reported an AUV of approximately $1.3 million last year. This figure is particularly impressive within the sandwich category, where it competes against lower-overhead models like Subway and Jimmy John’s. The $1.3 million AUV reflects the brand’s successful "dinner and weekend" push, as well as its strong digital sales, which now account for a significant portion of total revenue.

Regional Development Deals

The Georgia opening is bolstered by a massive development pipeline across the United States. Recent agreements include:

• Florida: A 10-unit deal for the Orlando and Gainesville markets, contributing to a total of over 54 shops currently under development in the state.
• New Jersey: A 15-unit agreement aimed at densifying the brand’s presence in the Northeast corridor.
• Colorado: A 20-unit deal focused on the Denver metropolitan area.
• Arizona: A five-unit deal for Mesa and surrounding suburbs.
• Non-Traditional: A high-profile agreement to bring Potbelly to the University of Iowa campus, testing the brand’s viability in high-density student environments.

Official Responses: Leadership’s Vision

Executives at Potbelly emphasize that while the growth is rapid, the goal is to maintain the "neighborhood shop" feel that has defined the brand since its founding in a Chicago antique shop in 1977.

Adam Noyes, President of Potbelly, highlighted the symbolic importance of the Georgia move. “Arriving in Georgia is a significant step in our brand’s long-term growth journey,” Noyes said in a press statement. “As we continue expanding into new markets and introducing more fans to our neighborhood shop experience, we are focused on maintaining the quality and culture that make Potbelly unique.”

Jennifer Durham, Senior Vice President of Franchising and Development, clarified the brand’s relationship with its parent company regarding C-store placements. While the Atlanta RaceTrac location is a major milestone, Durham noted that C-store units are not the primary engine of growth.

"C-store locations aren’t the main focus of the chain’s growth strategy," Durham explained. She noted that Potbelly will only open restaurants inside "select" RaceTrac locations that meet specific demographic and traffic criteria. The priority remains stand-alone shops and high-visibility end-cap locations in suburban shopping centers.

Implications: The Future of Fast-Casual and C-Store Synergy

The expansion of Potbelly into Georgia and its integration with RaceTrac carries significant implications for the broader restaurant and retail industries.

1. The "Premiumization" of Convenience Stores

The RaceTrac-Potbelly partnership represents a growing trend where convenience stores are evolving into "food-forward" destinations. By housing a Potbelly—a brand with a higher price point and quality perception than typical C-store fare—RaceTrac is positioning itself to compete with traditional fast-food outlets (QSRs) for the lucrative lunch-break demographic.

2. The Scalability of the "Neighborhood" Brand

A perennial challenge for Potbelly has been maintaining its "quirky, local" identity while scaling to 2,000 units. The current strategy relies heavily on multi-unit franchise partners who have deep roots in their respective territories. By leveraging local operators in markets like Denver and Orlando, Potbelly hopes to avoid the "cookie-cutter" feel that often plagues rapidly expanding chains.

3. Market Saturation and Competition

With over 54 shops in development in Florida alone, Potbelly is entering a direct collision course with established players like Firehouse Subs (headquartered in Jacksonville) and Jersey Mike’s. The success of Potbelly’s Georgia and Florida expansions will depend on its ability to differentiate itself through its unique toasted product and its "warmth" marketing strategy.

4. Digital and Nontraditional Growth

The University of Iowa deal suggests that Potbelly is looking closely at the "captive audience" model. Whether it is a college campus, an airport, or a RaceTrac off a major highway, the brand is diversifying its footprint to ensure it is not overly reliant on traditional office-worker lunch traffic—a segment that has remained unpredictable in the post-pandemic era.

Conclusion

As Potbelly crosses the 500-unit mark in 2026, the company stands at a crossroads. The backing of RaceTrac provides the financial "war chest" needed for aggressive national expansion, while the pivot to franchising offers a scalable path to the 2,000-unit goal. The Georgia opening is the first major test of this new era. If the brand can successfully translate its Chicago-born charm to the streets of Atlanta and the aisles of RaceTrac, the sandwich industry may be looking at its next dominant national player.

For now, the focus remains on the "Peach State," where the first toasted sandwiches are being served to a new generation of fans, marking the beginning of what Potbelly hopes will be a long and prosperous residency in the South.