Potbelly Corporation, the iconic neighborhood sandwich shop, announced it has finalized a multi-unit development agreement along with its first refranchising deal in New York City. This agreement includes multi-unit development for 13 new shops over the next eight years, and the refranchise of eight shops, the ownership of which has been fully transferred.
Bob Wright, President and Chief Executive Officer, comments, “I am excited to announce Potbelly’s expansion in New York City, one of the premier markets in the U.S., and that this expansion includes our first refranchise transaction. This agreement marks an important milestone for our Franchise Growth Acceleration Initiative as we expand Potbelly’s footprint across the country. It also demonstrates our confidence in the dynamic New York market as well as Central Business District (CBD) shops for the brand. We’re thrilled with the momentum we are gaining to achieve our franchising and refranchising goals as we continue our growth journey.”
United One Group (“UOG”) acquired the eight existing Potbelly locations in New York City, and additionally committed to developing 13 new shops over the next eight years. UOG is an experienced franchise group, led by Chief Executive Officer Paramjit Josan and Chief Development Officer Manny Singh. Combined, the UOG team has over 75 years of restaurant experience, developing and operating fast casual, quick service restaurants, and sandwich-specific brands as well as other hospitality-focused businesses. Additionally, UOG has deep experience in the Manhattan region and real estate market.
Paramjit Josan, says, “Potbelly is a clear gem within the sandwich and fast casual space, offering a best-in-class dining experience. We look forward to using our depth of experience in New York City and within the restaurant sector to strategically develop Potbelly locations in the New York City area and expand upon its leading brand positioning.”
As part of the Franchise Growth Acceleration Initiative announced in March 2022, Potbelly plans to reach 2,000 units with at least 85% of those being franchised shops over the next 10 years. The brand also plans to refranchise approximately 25% of its company owned shops in conjunction with Shop Development Area Agreements.
Ideal franchise candidates should be able to meet the required financial criteria, have restaurant operations experience, strong entrepreneurial skillsets, focused and driven problem solving and enjoy working with others. Operations can benefit from the sandwich concept’s flexible sop designs, including inline, endcap, drive-thru and non-traditional locations, which are equipped with tech-enabled enhancements to foster in-shop, take-out and delivery dining. These factors, along with a diverse menu and multiple revenue streams stemming from various dayparts, all make Potbelly and attractive franchise restaurant investment.
